Hooray for modern times! As part of the new Texas Estates
Code, the Texas Legislature finally got around to increasing various exemptions
and allowances for surviving family members.
Section 102.004 of the Texas Estates Code clarifies that the
homestead of a decedent who is survived by a spouse or a minor child is
not liable for the payment of any debts of the deceased’s estate, other than
certain debts which may be secured by that homestead under the Texas
Constitution – essentially, purchase money or home equity liens, ad valorem
property taxes, certain materialmen’s liens, an owelty of partition, or a
reverse mortgage.
Effective January 1, 2014, Chapter 353 of the Texas Estates
Code sets new amounts for certain allowances that may be claimed by a surviving
spouse or certain children of the deceased, prior to payment of any creditor’s
claims.
Under Section 353.053, in place of a homestead under Section
102.004 (for persons who lease or otherwise do not have a suitable homestead),
qualified survivors can request that the probate court set aside an allowance
up to $45,000 – previously, the maximum allowance in place of the homestead was
$15,000.
In lieu of any exempt personal property, the survivors can
also request the probate court set aside an allowance up to $30,000 – the
previous cap on this allowance was $5,000.
These two allowances are in addition to the “family
allowance” that may be requested under Section 353.102 of the Texas Estates Code
for the maintenance of the surviving spouse, minor children, and any adult
incapacitated children for one year from the date of the decedent’s death.
Effectively, the Texas Legislature now permits qualified
survivors to set aside up to $75,000 (versus the previous $20,000), as well as
a “family allowance” when necessary, to help provide for their care without the
fear of such funds being seized by the deceased’s creditors.
By: Cynthia W. Veidt, cindy@lpvlaw.com
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