Heirship Property

What is Heirship Property?

When Real Estate is inherited upon the passing of the original property owner, it is often referred to as “Heirship Property”. Whether heirship property is inherited under a Will or through the Texas laws of descent and distribution, it is important to do the following two (2) things:

• Probate the estate of the original property owner to transfer title to the heirs or beneficiaries
• Decide what will be done with the property.

Probating the Estate

Upon the death of the property owner, title vests immediately to the beneficiaries under a will or to the heirs under the laws of Texas if there is no will. Some form of PROBATE MUST BE DONE to transfer title from the deceased property owner to the beneficiaries or heirs. This process puts the new ownership in the public record for future transactions. Therefore, it is important that probate be done as soon as possible upon the death of the property owner. The type of probate depends on your unique circumstances and is determined on a case by case basis.

Deciding What To Do With Inherited Real Estate

Deciding what to do with inherited real estate can be complex when there are multiple heirs or beneficiaries.

Keeping Inherited Real Estate

Many people decide to keep real estate they have inherited. If you are going to keep inherited real estate, keep in mind that you are now responsible for:

• Paying the property taxes
• Maintaining the property

If you own inherited property with multiple people, you are responsible for paying your share of the property taxes based on your ownership interest. For example, if you own half of the property, you are responsible for half of the property taxes. The same is true for maintenance and upkeep. Your contribution to maintenance and upkeep should be proportionate to your ownership interest.

That said, county taxing authorities expect payment in full of ALL assessed property taxes or they will initiate a Property Tax Foreclosure Suit. So even if you are only responsible for a portion of the taxes, you must make sure that ALL of the taxes are paid in full.

What if One of the Other Owners Is Living On My Inherited Property?

Owning inherited property with others means that everyone who has an ownership interest in the property has an equal right to occupy the property.

What if One of the Other Owners Is Leasing Out My Inherited Property?

Owning inherited property with others means that everyone who has an ownership interest in the property has a right to receive rents proportional to their individual ownership interest.

Selling Inherited Real Estate

You have the right to sell your interest in real estate at any time. However, doing so may prove to be more difficult when you own real estate with others. Real Estate Purchasers will often use a Title Company to determine whether ownership is clear before they enter into a business transaction. A title company will NOT insure the sale of a partial interest in property. As a result, you may have to file a lawsuit against the other owners to force a sale of the property if you would like to liquidate your interest.

The issues that can arise from Heirship Property are vast and complex. Understanding your specific legal matter requires a consultation with a licensed and experienced probate attorney. To schedule a consultation to discuss your Heirship Property matter with Attorney Steven K. Schwartz II, give us a call or fill out the contact form below.