I live in texas and have one brother and one sister left living. I have one brother that has passed away. My questions is if my parents die without a will, will my brother children,the one that passed away,be entittled to anything?

RickJ

I'm sorry, but the best answer I can find is "maybe" (here)

The bottom line is that the court will decide.

I strongly suggest you urge your parents to make a will and file it with Probate.

Fr_Chuck

normally no,

if there is no will, the living children would normally be considered the heirs. The grandchildren can challenge it in probate court for a share.

But if the estate is smaller and there is no house, it often does not even go though probate.

So they need a will, it will make it alot easier. I am often saddened how greedy people get when ohers die and they fight over there estate.

TEXAS2288

We do not want to fight over anything,but a couple of my brothers children have drug problems and they are telling there friends that they will get my parents property and money when they die. My parents really dont' have any money but they do have a house. So we are just worried about that.

ScottGem

So, get your parents to make a will. OI better yet, have them put you and your siblings on the deed.

CaptainForest

I disagree with you Scott.

Not about the parents making a will, that they SHOULD do.

But, they should NOT put the children on the deed.

Why not?

Reason 1:
Let’s say one of the children gets into a financial mess. Then, all of a sudden, a lien can be placed on the house.

Let’s say in 5 years the parents decided they want to sell the house to move into a condo. Now, they can’t since there is a lien on the property.

Reason 2:
How much did your parents pay for this house when the bought it? Let’s say $200,000.

When you sell a house, you must tax on the difference between the selling price and the purchase price.

Let’s say the house is worth $500,000 today. If they were to sell it today, they would pay tax on $300,000 (500-200).

However, if your names are added on, your cost based will remain at $200,000.

However, if you receive the house via a will when they die, your cost base will be bumped up to current market value.

So, if they were to die today, your cost base would be $500,000. If you sold it then at $500,000, you would not pay anything in taxes.

Why should you do it?
If you know 1 sibling will challenge the will and the legal costs will be far higher then its worth, and all have good credit, then go for it. But it is a risk. If one sibling gets into financial trouble, then ALL siblings and parents suffer for it.

But, your parents should NOT put you all on the deed.

Instead, have them make out a will ASAP.

And what they need to do is to tell the lawyer about what the grandchildren want to do (sue when the die) and he can structure the will in such a way to make it very hard for them to ever see a penny.

ScottGem

While CF makes some valid points, there are ways to add the siblings to the deed without incurring some of the consequences he cites. The advantage is that it avoids probate.

CaptainForest

Good points Scott,

But, I believe in the US now, federally, it is around 1.5 million exempt from estate taxes?

And, as they said, this is the parents only real asset…..

But what if the parents then turn around in 5 years want to disown one of the siblings? If they are on the deed, they can’t be taken off.

s_cianci

Do your parents have a will? You should find out. If they do, who is the executor? You should know that as well. If not, talk with an estate-planning attorney from your state to find out exactly what happens when one dies intestate (sp?). Better yet, after talking with this attorney, put your parents in contact with him/her so that they can have a will drawn up. It's not an overly expensive or time-consuming process.