Can I Transfer Property to a Trust with a Small Estate Affidavit?
Full Question:
Answer:
In Texas, where the value of the entire assets of the estate, not including homestead and exempt property, does not exceed $50,000, a small estate may be administered by a small estate affidavit. After the affidavit has been approved by the court, the affidavit may be used to collect debts owed to the decedent.
The affidavit is filed with the clerk of the court in the county where the deceased resided. It lists certain information required by statutes, such as all of the known assets and liabilities of the estate, the names and addresses of the distributees, and the relevant family history or other facts concerning heirship that show the distributees' rights to receive the money or property of the estate. Please see the information at the link below for statutes and specific requirements. A link to an heirship affidavit has also been provided.
Once approved by the court, the affidavit may be presented to those who owe debts to the deceased in order to collect the property or money owed. Policies regarding distribution without an affidavit vary by company policy.
In order to fund a trust with real estate, the real estate needs to be transferred to the trust. Typically this is done by the present owners preparing a deed transferring their ownership to the trust and recording the deed at the county recorder's office in the county where the property is located. For example, in a case where a daughter is the sole owner, the deed's grantor is the daughter and the grantee is a trustee. If the grantee is a person acting as a trustee, the person is named in his/her capacity as a trustee, rather than personally, as an individual. In OH, the deed must be notarized at the time of signing.
