It’s a common occurrence: a family member passes away, but Mom named a beneficiary on her bank account and all the heirs agree who should now get the house. It seems simple enough to resolve without involving a lawyer and going to probate court, right?
Maybe not! A report in the Philadelphia Inquirer illuminates the problems families encounter when an estate is never opened and the legal ownership of the family home still lists long-deceased owners. Heirs who may have been paying property taxes and upkeep for years may find themselves unable to obtain a mortgage or sell the property. This could leave heirs in rapidly-gentrifying areas in a bind, unable to sell or keep up with escalating taxes. Addressing the title transfer of real property is an important step in wrapping up your loved one’s affairs. When homes are sold, one of the roles a title company is to make sure the seller has legal authority to transfer the property. When deed records show property is in the name of a deceased relative, sellers may have to scramble to locate decades-old documents or file additional affidavits and paperwork with the court. Clearing title to inherited property is crucial to preserving wealth.
Many of the issues surrounding unclear chain of title can be alleviated with careful planning while the homeowner is still living. For many families, the home is the primary source of wealth, and those concerned about providing for younger generations need to carefully consider drafting a will or using other estate planning techniques. Careful planning will go a long way in making sure the family home cleanly passes to your descendants.
In Texas, there are several ways to clear title to property, including distribution or sale through the probate process, recording the will as a muniment of title, or filing an affidavit of heirship in the real property records. Before death, executing a deed with a contingent beneficiary or utilizing a revocable management trust can make the transfer to the next generation automatic. Consult with a qualified estate planning and probate attorney today to preserve your family’s legacy.