Presumption of Undue Influence
A person who is an Executor, Administrator, Trustee, or who has a Power of Attorney is a fiduciary. A fiduciary must act in the best interest of the beneficiaries and show that each of his actions was in the beneficiaries’ best interest. When an action benefits the fiduciary in any way, there is a presumption of unfairness, and the fiduciary may be liable.
David Johnson, an attorney who writes on fiduciary litigation, has an article that addresses the case of In re Estate of Klutts, 02-18-00356-CV, (Tex. App.—Fort Worth December 19, 2019, no pet. history). In Klutts, a son who had a power of attorney helped his mother prepare a new will which benefited the son. When the mother died, he attempted to probate the new will. However, his siblings contested the will. The son asked the court to dismiss the contest because his siblings had no evidence that he unduly influenced his mother. The trial court agreed with the son and rejected the will contest. On appeal, the appeals court reversed.
The appeals court held that because he had a power of attorney, the son had to overcome the presumption of undue influence. Thus, the burden was not on the siblings to prove undue influence but on the son to disprove it.
Taxing authorities can foreclose on your real property when you don’t pay your taxes. By statute, an owner may redeem real property purchased at a tax sale by paying certain amounts within a prescribed period of time after the purchaser’s deed is recorded. What does a tax foreclosure in Texas have to do with an inheritance? Read on and find out.
Inheritance and foreclosure
Let’s say an elderly relative doesn’t keep up with their bills. Tax payments can be missed or forgotten. A relative may need to be put in a nursing home, and while there, no one pays the taxes. The relatives may not know that a tax foreclosure happens in each situation. This can happen even with a property that is the person’s homestead. Depending on the facts, the heirs of the deceased relative may be able to redeem the property after the death of the decedent.
A situation like the above happened when an elderly man could not care for himself. 593sw3d167. His mother-in-law, Barton, asked her daughter, Karen, to quit her job to take care of him. When the man died, Karen was appointed administrator of his estate. Before he died, several taxing authorities foreclosed on his three-acre tract valued at $217,00 and, after his death, sold it at a foreclosure sale for $68,000. The land was the only asset of his estate.
Karen died shortly after the man, and Barton was appointed successor administrator of his estate. She then began the process of redeeming the property back into the estate. Barton was successful in redeeming the property.
The takeaway from this post is that a tax foreclosure in Texas is not as final as one might think. If you meet the criteria set out in the statute, you may be able to redeem the property after it is sold even if you are not the original owner and may only be an heir.
In a recent Texas inheritance dispute out of the Fort Worth Court of Appeals, In the Estate of Larry Ronald Neal, Deceased, No. 02-16-00381-CV, (Tex. App. –Fort Worth, Delivered: November 9, 2017), the question was what did the testator mean in his will. The will stated that the beneficiary (a niece) would receive “all my personal effects and all my tangible personal property, including automobiles, hangars, aircraft, fly-drive vehicles, patents, companies, and all other things owned by me at the time of my death, including cash on hand in bank accounts in my own name, or companies[`] names, or securities, or other intangibles.”
The testator’s children asked the court to declare that he died intestate as to his real property since it was not mentioned in the will. The niece claimed that the phrase “and all other things owned by me at the time of my death” was meant to include the real estate. (more…)