Texas inherited real property often causes families to lose significant wealth. In these situations, inheritance and title issues trap inherited houses, family farms, or other real property. More specifically, heir or beneficiaries cannot sell inherited real property because they cannot clear title. This problem arises when a record owner of real property dies. The deceased’s interest typically transfers into their estate. Once the real property is in the estate, the heirs or beneficiaries must legally transfer the property out of the deceased’s estate. In many situations, the heirs and beneficiaries will need to file a lawsuit will to clear title to the property. At this time inheritance issues arise which trap the property.
Trapped Texas Real Estate and Inheritance Issues
Several inheritance issues trap Texas real estate preventing a sale or transfer. The most common causes of these issues are a lack of any estate planning and do it yourself Wills. Unfortunately, both of these causes are permanent once a person has already died. In other words, there are no take backs or do overs.
This lack of proper estate planning causes several inheritance issues. One inheritance issue is that estranged family members inherit interests in real property. Thus, the family after losing a loved one must find, communicate, and deal with estranged relatives. A second inheritance issue occurs when a person on benefits inherits property. This inheritance will commonly knock them off benefits and the inheritance will be used instead of the government benefits. A third inheritance issues occurs when minors inherit real property. Typically, minors are not able to contract including buying or selling property.
These inheritance issues typically surprise families and result in trapped real property. The heirs or beneficiaries cannot sell, mortgage, or transfer the inherited property.
Trapped Texas Property is Commonly Lost Through Foreclosure
To add to the problem, the loss of the owner typically also reduces the ability of the family to pay taxes and upkeep. For this reason, families commonly lose a significant amount of inherited property because the family cannot afford the property. Further, the death of the owner will often alleviate the need for an inherited house. Whether the deceased was living alone or surviving family need to move after a death, the family may not need the house. Thus, many families inherit a house they can’t use, afford, or sell.
More Information on Texas Inherited Real Estate and Clearing Title to Trapped Real Property
Many families will lose significant wealth because they are not aware of trapped real property issues until after a death. Understanding the potential danger of trapped inherited property is the first step. Understanding the potential inheritance issues that a death may cause is a second step. Resolving these issues is a third step.
For families who are dealing with trapped inherited property, heirs and beneficiaries should minimize loss. A Texas Inheritance Lawyer can often help the family clear title and prevent loss.