Estate Property Taxes

Often property owners pass away and their heirs are left with the responsibility our sorting through both the legal ownership of the property and payment of past due property taxes.  More often than not, the deceased property owner died intestate (without a will) and deferred the payment of property taxes with their over 65 exemption.  The time and financial resources required to resolve these cases can vary depending on the size of the estate and level of cooperation between the heirs.  If the estate is comprised of just real property, adherence to the following steps will assist with your efforts to resolve legal ownership and settlement of past due taxes.

1) Contact your Tax Assessor immediately to determine the status of any law suits that may be pending against the property. If a suit is pending, you need make sure you take the necessary to steps to settle the taxes before foreclosure sale.

2) Texas Probate Code Section 38, provides  that if a property owner dies without a will, the ownership of the assets can still be determine and their estate can be probated.  If the assets of the estate are just real property, an Affidavit of Heirship can be used to settle the estate. An  Affidavit of Heirship is a simple document prepared by an attorney and  witnessed by two people familiar with the family in front of a Notary Public.  The document is then recorded with the County Clerk. The cost of preparation and recording ranges from $450 to $550.

3) Once the Affidavit of Heirship is recorded, the heirs of the property, that are set forth in affidavit,  take ownership of the property and will be responsible for the payment of real estate taxes.

4) If the decedent was eligible for a Homeowner or other exemptions during their ownership of the property, it is important that you review the history of property on the taxes rolls to determine if proper  credit was given by the Tax Assessor.  If it is determine that proper credit was not given, the heirs may be eligible for a reduction in taxes or refund.

If the estate includes more than just real property or if all the heirs to the estate are not willing to sign an Affidavit of Heirship, there are additional steps that can be taken to settle the estate.  These measures also require the assistance of a Probate Attorney. The cost of a more complex Estate Administration can range from $700 to $2,000. See our blog dated   11/28/11.  for details on options that are available to settle real estate taxes.  It is possible that you can finance the cost of settling the estate along with the payment of taxes by securing a property tax loan.