If I understand correctly, when someone with real property in Texas dies without a Will, their children inherit the property ... but their spouse has a life estate in the property.
Who, then, would be legally responsible for paying the property taxes while the spouse is still living?
And who would have the legal right to enter into an O&G lease ... and who would get the earnings from it?
Thanks in advance for clarification.
Dear Mr. Joyson:
You are mis-informed. There are plenty of rules as to descent and distribution in Texas for intestate successions.
There are lots of resources, but this is as good as any.
http://www.stewarttexas.com/download/575/TX_intestate_succession.pdf
Best
Buddy CottenRay,
This is where many people get confused. There is no automatic life estate vested in the spouse in Texas when someone dies intestate. You have to look first at whether it was separate or community property etc., etc.
I wish that I had more time to explain it further to you. Maybe that link that was posted will help clarify things for you.
Normally when someone passes in Tarrant County, the owner of public record changes to "owner name estate" until proper documentation (will, probate, etc.) is provided. So that the county as well as the public can see that the person is gone, and the property is in an estate. This may go on for years. If the spouse's name is still on the title with the deceased (owner name estate & spouse), the spouse is still legally responsible for the taxes.
I could go on and on with exceptions to that statement, but for simplicity sake, all heirs or potential heirs of the estate should be responsible for the taxes. Anyone who has a financial interest in the estate can protest the tax value here. Of course if you have no interest in the property, you could ignore the taxes completely. I have seen that many times as well.
For a more thorough discussion of Life Estates:
http://www.mineralrightsforum.com/profiles/blogs/the-life-estate-in-texas-a
Ray,
Don't worry about it if you don't absorb all of the links that you are being fed. It just depends on your background etc...
I joined this site a little over a year ago because, after reading many of the replies, I had two main problems with them. The first was that many of them were from people who were in the oil business, and they were unable to understand that their replies were over the head of the average poster. The second reason I joined was that there was one individual who was so pro-mineral owner, that I worried that his unrealistic terms and counters would cut good people out of money that they needed, in other words, a very fair offer made for a particular area would be trumped by this individual as being unfair. It was always so transparent what he was trying to do. Get more, more, more. Negotiations aren't a one-way street.
If I was you, I would try to absorb what you can here with the links and replies. I not only understood the links, I already knew the legalities that were in them. As for you, read them, and then consult an attorney if you want to apply them to anything that affects you or your family personally.
Thank you all for your responses ... very educational.
I'm afraid I wasn't detailed enough with my question. I was trying to keep it simple ... but these things are rarely simple, are they.
What I really want to know pertains to the property taxes. In a situation in which there is a life estate ... who is legally responsible for paying the property taxes?
Here's why I'm asking. My family has an undivided interest in Texas with a number of family co-owners. Over the years, one family member took it upon themselves to pay all of the taxes ... without letting some of us know we'd become co-owners when our mother died without a Will in 1985.
Eventually we were notified by various landmen and lawyers of these facts. We're told that our father had had a life estate ... until his death in 1995.
The land was not under lease during this time ... so bonuses and royalties are not an issue.
But some of us want to voluntarily reimburse the family member who paid the taxes for our legal share since 1985. So would we have been legally responsible for all the taxes from 1985 to the present ... or would our father have been legally responsible for his proportionate share between 1985 and 1995?
I had never been asked that question before, so I just did some checking online. The consensus seems to be that the life tenant is responsible for the property taxes.
This is getting into complex legal situations that are difficult to advise between what is “law” and what is “morally correct / risk reduction” for yourself. The will defines legal specifics that create the life estate. But the will may or may not have specifics about the ad valorem tax responsibility. Another thing to consider is, does anyone have receipts of the tax payments from 1985-1995? The county may not have records of who actually paid during those years since it is so long ago. You would have to ask them. Like Dave said, I think you should seek professional guidance on this one. Even if a different family member paid between 1985-1995, and legally the will placed that responsibility on your father, Is the other family member’s payment now considered a gift to your father? There are so many what-ifs and exceptions to the law to give proper advice here. It sounds like you are wanting to cover yourself against risk / liability down the road more than anything. I think that is great to do, but an attorney experienced in these matters will be able to determine exactly what you need to do to reduce the overall liability. It may be more or possibly less than what you believe your obligation is. I have a feeling in this case the lawyer may even save you money over what you were prepared to spend initially to cover your portion of the taxes. And by having an attorney work this for you, they should make sure that any obligations for prior taxes is done in a way to further limit your liabilities from future disputes (by written agreements / acknowledgements, etc).