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Is inherited real estate subject to property division in Texas?

On Behalf of | Jun 15, 2022 | Blog

The state law in Texas defines inheritance as a distinct type of property that isn’t subjected to the same process of division in a divorce. For this reason, it doesn’t matter if an asset was acquired as an inheritance at any point during the marriage when it comes to the division of the property.

Is there inheritance or estate tax in Texas?

There is neither a state inheritance tax nor estate tax imposed on Texans. These types of taxes have been repealed by the Lone Star State since the start of September 2015.

Dying without a will means that your inherited assets will be divided through Texas’s intestate succession process. Inheritance law only applies in Texas when a person has passed away without creating a testate will.

What makes a will valid?

A will is characterized by being legally clear and complete with the precise intentions for all elements of a person’s estate in the event of their passing put into writing. As long as the will is valid, there are very few cases in Texas in which the estate won’t be executed exactly as specified in this legal document.

Some tax filing will still probably be necessary to carry on the deceased’s behalf in the property division process. This includes their federal income tax return and federal estate tax return.

The two types of property in a Texas divorce are community property and separate property. Community property includes any property that was acquired while you were married, giving you and your partner joint ownership. But this rule doesn’t necessarily apply to gifts and inheritance, even if they were acquired during the marriage. Divorce law in Texas generally considers any property that was acquired by gift, device, or descent as separate property.