The worst part of my job is giving bad news to clients, especially when they are hurting from the loss of a spouse or loved one.
One of the most common pieces of bad news that I regularly must give is that a person no longer fully owns their home after their spouse passes away.
This situation is common in blended families where one or both spouses have children from a previous relationship, and the family neglected to do any estate planning by getting a will or some form of survivorship deed on their home.
When a person living in Texas dies without a will, the law states that they die intestate, and instead of a will or other document stating who owns the property next, Texas intestacy laws dictate ownership.
I think the simplest way to explain this is through a brief hypothetical scenario.
Howard has two adult kids from a previous marriage. He later marries Wanda, who also has two kids from a previous marriage. Together, they have one child and decide to purchase a new home together. Many years later, Howard passes away suddenly without any estate planning.
Wanda decides to sell the home she and Howard purchased and use the funds to purchase another home. Unfortunately for Wanda, she is only entitled to half of the money obtained from the sale of the home. She has the right to remain in the home as long as she chooses to live there and the adult children cannot force her out, but Wanda is only entitled under the law to half of the sale proceeds.
When a married couple purchases a home together in Texas, each spouse owns their share of the community property, which is one-half each. Under Texas intestacy laws, Howard’s three children are entitled to his community property, which is his half of the home.
It’s a bad situation for the surviving spouse and is all too common. The best way to avoid these situations is through proper planning.
Remember, estate planning is not just for the wealthy. Ensure your loved ones are cared for by setting up a proper Texas will and other estate planning measures.
