2009 Texas Code
PROBATE CODE
CHAPTER VIII. PROCEEDINGS DURING ADMINISTRATION  

PROBATE CODE

CHAPTER VIII. PROCEEDINGS DURING ADMINISTRATION

PART 1. INVENTORY, APPRAISEMENT, AND LIST OF CLAIMS

Text of section as amended by Acts 2005, 79th Leg., R.S., Ch.

765, Sec. 2

For text of section as amended by Acts 2005, 79th Leg., Ch.

701, Sec. 1, see other Sec. 248.

Text of article effective until January 01, 2014

Sec. 248. APPOINTMENT OF APPRAISERS. At any time after the

grant of letters testamentary or of administration, the court for

good cause on its own motion or on the motion of an interested

party shall appoint not less than one nor more than three

disinterested persons, citizens of the county in which letters

were granted, to appraise the property of the estate. In such

event and when part of the estate is situated in a county other

than the county in which letters were granted, if the court shall

deem necessary it may appoint not less than one nor more than

three disinterested persons, citizens of the county where such

part of the estate is situated, to appraise the property of the

estate situated therein.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1967, 60th Leg., p. 1815, ch. 697, Sec. 2, eff. Aug. 28,

1967; Acts 1993, 73rd Leg., ch. 957, Sec. 44, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

765, Sec. 2, eff. June 17, 2005.

Text of section as amended by Acts 2005, 79th Leg., R.S., Ch.

701, Sec. 1

For text of section as amended by Acts 2005, 79th Leg., Ch.

765, Sec. 2, see other Sec. 248.

Text of article effective until January 01, 2014

Sec. 248. APPOINTMENT OF APPRAISERS. At any time after the

grant of letters testamentary or of administration and on its own

motion or on the motion of an interested person, the court for

good cause shown shall appoint not less than one nor more than

three disinterested persons, citizens of the county in which

letters were granted, to appraise the property of the estate. In

such event and when part of the estate is situated in a county

other than the county in which letters were granted, if the court

shall deem necessary it may appoint not less than one nor more

than three disinterested persons, citizens of the county where

such part of the estate is situated, to appraise the property of

the estate situated therein.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1967, 60th Leg., p. 1815, ch. 697, Sec. 2, eff. Aug. 28,

1967; Acts 1993, 73rd Leg., ch. 957, Sec. 44, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

701, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

765, Sec. 2, eff. June 17, 2005.

Text of article effective until January 01, 2014

Sec. 249. FAILURE OF APPRAISERS TO SERVE. If any appraiser so

appointed shall fail or refuse to act, the court shall by a like

order or orders remove such appraiser and appoint another

appraiser or appraisers, as the case shall require.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1967, 60th Leg., p. 1816, ch. 697, Sec. 3, eff. Aug. 28,

1967.

Text of article effective until January 01, 2014

Sec. 250. INVENTORY AND APPRAISEMENT. Within ninety days after

his qualification, unless a longer time shall be granted by the

court, the representative shall file with the clerk of court a

verified, full and detailed inventory, in one written instrument,

of all the property of such estate which has come to his

possession or knowledge, which inventory shall include:

(a) all real property of the estate situated in the State of

Texas;

(b) all personal property of the estate wherever situated. The

representative shall set out in the inventory his appraisement of

the fair market value of each item thereof as of the date of

death in the case of grant of letters testamentary or of

administration, as the case may be; provided that if the court

shall appoint an appraiser or appraisers of the estate, the

representative shall determine the fair market value of each item

of the inventory with the assistance of such appraiser or

appraisers and shall set out in the inventory such appraisement.

The inventory shall specify what portion of the property, if any,

is separate property and what portion, if any, is community

property. If any property is owned in common with others, the

interest owned by the estate shall be shown, together with the

names and relationship, if known, of co-owners. Such inventory,

when approved by the court and duly filed with the clerk of

court, shall constitute for all purposes the inventory and

appraisement of the estate referred to in this Code. The court

for good cause shown may require the filing of the inventory and

appraisement at a time prior to ninety days after the

qualification of the representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1967, 60th Leg., p. 1816, ch. 697, Sec. 4, eff. Aug. 28,

1967; Acts 1993, 73rd Leg., ch. 957, Sec. 45, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 251. LIST OF CLAIMS. There shall also be made out and

attached to said inventory a full and complete list of all claims

due or owing to the estate, which shall state:

(a) The name of each person indebted to the estate and his

address when known.

(b) The nature of such debt, whether by note, bill, bond, or

other written obligation, or by account or verbal contract.

(c) The date of such indebtedness, and the date when the same was

or will be due.

(d) The amount of each claim, the rate of interest thereon, and

time for which the same bears interest.

(e) In the case of decedent's estate, which of such claims are

separate property and which are of the community.

(f) What portion of the claims, if any, is held in common with

others, giving the names and the relationships, if any, of other

part owners, and the interest of the estate therein.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 252. AFFIDAVIT TO BE ATTACHED. The representative of the

estate shall also attach to such inventory and list of claims his

affidavit subscribed and sworn to before an officer in the county

authorized by law to administer oaths, that the said inventory

and list of claims are a true and complete statement of the

property and claims of the estate that have come to his

knowledge.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 253. FEES OF APPRAISERS. Each appraiser appointed by the

court, as herein authorized, shall be entitled to receive a

minimum compensation of Five Dollars ($5) per day, payable out of

the estate, for each day that he actually serves in performance

of his duties as such.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 9.

Text of article effective until January 01, 2014

Sec. 255. ACTION BY THE COURT. Upon return of the inventory,

appraisement, and list of claims, the judge shall examine and

approve, or disapprove, them, as follows:

(a) Order of Approval. Should the judge approve the inventory,

appraisement, and list of claims, he shall issue an order to that

effect.

(b) Order of Disapproval. Should the judge not approve the

inventory, appraisement, or list of claims, or any of them, an

order to that effect shall be entered, and it shall further

require the return of another inventory, appraisement, and list

of claims, or whichever of them is disapproved, within a time

specified in such order, not to exceed twenty days from the date

of the order; and the judge may also, if deemed necessary,

appoint new appraisers.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 256. DISCOVERY OF ADDITIONAL PROPERTY. If, after the filing

of the inventory and appraisement, property or claims not

included in the inventory shall come to the possession or

knowledge of the representative, he shall forthwith file with the

clerk of court a verified, full and detailed supplemental

inventory and appraisement.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1967, 60th Leg., p. 1816, ch. 697, Sec. 5, eff. Aug. 28,

1967.

Text of article effective until January 01, 2014

Sec. 257. ADDITIONAL INVENTORY OR LIST OF CLAIMS REQUIRED BY

COURT. Any representative of an estate, on the written complaint

of any interested person that property or claims of the estate

have not been included in the inventory and list of claims filed,

shall be cited to appear before the court in which the cause is

pending and show cause why he should not be required to make and

return an additional inventory or list of claims, or both. After

hearing such complaint, and being satisfied of the truth thereof,

the court shall enter its order requiring such additional

inventory or list of claims, or both, to be made and returned in

like manner as original inventories, and within such time, not to

exceed twenty days, from the date of said order, as may be fixed

by the court, but to include only property or claims theretofore

not inventoried or listed.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 258. CORRECTION REQUIRED WHEN INVENTORY, APPRAISEMENT, OR

LIST OF CLAIMS ERRONEOUS OR UNJUST. Any person interested in an

estate who deems an inventory, appraisement, or list of claims

returned therein erroneous or unjust in any particular may file a

complaint in writing setting forth and pointing out the alleged

erroneous or unjust items, and cause the representative to be

cited to appear before the court and show cause why such errors

should not be corrected. If, upon the hearing of such complaint,

the court be satisfied from the evidence that the inventory,

appraisement, or list of claims is erroneous or unjust in any

particular as alleged in the complaint, an order shall be entered

specifying the erroneous or unjust items and the corrections to

be made, and appointing appraisers to make a new appraisement

correcting such erroneous or unjust items and requiring the

return of said new appraisement within twenty days from the date

of the order. The court may also, on its own motion or that of

the personal representative of the estate, have a new appraisal

made for the purposes above set out.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 259. EFFECT OF REAPPRAISEMENT. When any reappraisement is

made, returned, and approved by the court, it shall stand in

place of the original appraisement. Not more than one

reappraisement shall be made, but any person interested in the

estate may object to the reappraisement either before or after it

is approved, and if the court finds that the reappraisement is

erroneous or unjust, the court shall appraise the property upon

the basis of the evidence before it.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 260. FAILURE OF JOINT PERSONAL REPRESENTATIVES TO RETURN AN

INVENTORY, APPRAISEMENT, AND LIST OF CLAIMS. If there be more

than one representative qualified as such, any one or more of

them, on the neglect of the others, may make and return an

inventory and appraisement and list of claims; and the

representative so neglecting shall not thereafter interfere with

the estate or have any power over same; but the representative so

returning shall have the whole administration, unless, within

sixty days after the return, the delinquent or delinquents shall

assign to the court in writing and under oath a reasonable excuse

which the court may deem satisfactory; and if no excuse is filed

or if the excuse filed is not deemed sufficient, the court shall

enter an order removing any and all such delinquents and revoking

their letters.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 261. USE OF INVENTORIES, APPRAISEMENTS, AND LISTS OF CLAIMS

AS EVIDENCE. All inventories, appraisements, and lists of claims

which have been taken, returned, and approved in accordance with

law, or the record thereof, or copies of either the originals or

the record thereof, duly certified under the seal of the county

court affixed by the clerk, may be given in evidence in any of

the courts of this State in any suit by or against the

representative of the estate, but shall not be conclusive for or

against him, if it be shown that any property or claims of the

estate are not shown therein, or that the value of the property

or claims of the estate actually was in excess of that shown in

the appraisement and list of claims.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 2. WITHDRAWING ESTATES OF DECEASED PERSONS FROM

ADMINISTRATION

Text of article effective until January 01, 2014

Sec. 262. EXECUTOR OR ADMINISTRATOR REQUIRED TO REPORT ON

CONDITION OF ESTATE. At any time after the return of inventory,

appraisement, and list of claims of a deceased person, any one

entitled to a portion of the estate may, by a written complaint

filed in the court in which such case is pending, cause the

executor or administrator of the estate to be cited to appear and

render under oath an exhibit of the condition of the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 263. BOND REQUIRED TO WITHDRAW ESTATE FROM ADMINISTRATION.

When the executor or administrator has rendered the required

exhibit, the persons entitled to such estate, or any of them, or

any persons for them, may execute and deliver to the court a bond

payable to the judge, and his successors in office, to be

approved by the court, for an amount equal to at least double the

gross appraised value of the estate as shown by the appraisement

and list of claims returned, conditioned that the persons who

execute such bond shall pay all the debts against the estate not

paid that have been or shall be allowed by the executor or

administrator and approved by the court, or that have been or

shall be established by suit against said estate, and will pay to

the executor or administrator any balance that shall be found to

be due him by the judgment of the court on his exhibit.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 264. COURT'S ORDER. When such bond has been given and

approved, the court shall thereupon enter an order directing and

requiring the executor or administrator to deliver forthwith to

all persons entitled to any portion of the estate the portion or

portions of such estate to which they are entitled.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 265. ORDER OF DISCHARGE. When an estate has been so

withdrawn from further administration, an order shall be entered

discharging the executor or administrator and declaring the

administration closed.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 266. LIEN ON PROPERTY OF ESTATE WITHDRAWN FROM

ADMINISTRATION. A lien shall exist on all of the estate

withdrawn from administration in the hands of the distributees,

and those claiming under them with notice of such lien, to secure

the ultimate payment of the aforesaid bond and of the debts and

claims secured thereby.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 267. PARTITION OF ESTATE WITHDRAWN FROM ADMINISTRATION. Any

person entitled to any portion of the estate withdrawn from

further administration may, on written application to the court,

cause a partition and distribution to be made among the persons

entitled thereto, in accordance with the provisions of this Code

pertaining to the partition and distribution of estates.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 268. CREDITORS MAY SUE ON BOND. Any creditor of an estate

withdrawn from administration whose debt or claim is unpaid and

is not barred by limitation shall have the right to sue on the

bond in his own name, and shall be entitled to judgment thereon

for such debt or claim as he shall establish against the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 269. CREDITORS MAY SUE DISTRIBUTEES. Any creditor of an

estate withdrawn from administration whose debt or claim is

unpaid and is not barred by limitation may sue any distributee

who has received any of the estate, or he may sue all the

distributees together, but no one of such distributees shall be

liable beyond his just proportion according to the amount of the

estate he shall have received in the distribution.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 3. SETTING APART HOMESTEAD AND OTHER EXEMPT PROPERTY, AND

FIXING THE FAMILY ALLOWANCE

Text of article effective until January 01, 2014

Sec. 270. LIABILITY OF HOMESTEAD FOR DEBTS. The homestead shall

not be liable for the payment of any of the debts of the estate,

except for:

(1) the purchase money thereof;

(2) the taxes due thereon;

(3) work and material used in constructing improvements thereon

if the requirements of Section 50(a)(5), Article XVI, Texas

Constitution, are met;

(4) an owelty of partition imposed against the entirety of the

property by court order or by a written agreement of the parties

to the partition, including a debt of one spouse in favor of the

other spouse resulting from a division or an award of a family

homestead in a divorce proceeding;

(5) the refinance of a lien against a homestead, including a

federal tax lien resulting from the tax debt of both spouses, if

the homestead is a family homestead, or from the tax debt of the

decedent;

(6) an extension of credit on the homestead if the requirements

of Section 50(a)(6), Article XVI, Texas Constitution, are met; or

(7) a reverse mortgage.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 35, ch. 24, Sec. 1, eff. Aug. 27,

1979; Acts 1999, 76th Leg., ch. 487, Sec. 1, eff. Sept. 1, 1999;

Acts 1999, 76th Leg., ch. 855, Sec. 9, eff. Sept. 1, 1999.

Text of article effective until January 01, 2014

Sec. 271. EXEMPT PROPERTY TO BE SET APART. (a) Unless an

affidavit is filed under Subsection (b) of this section,

immediately after the inventory, appraisement, and list of claims

have been approved, the court shall, by order, set apart:

(1) the homestead for the use and benefit of the surviving

spouse and minor children; and

(2) all other property of the estate that is exempt from

execution or forced sale by the constitution and laws of this

state for the use and benefit of the surviving spouse and minor

children and unmarried children remaining with the family of the

deceased.

(b) Before the approval of the inventory, appraisement, and list

of claims:

(1) a surviving spouse or any person who is authorized to act on

behalf of minor children of the deceased may apply to the court

to have exempt property, including the homestead, set aside by

filing an application and a verified affidavit listing all of the

property that the applicant claims is exempt; and

(2) any unmarried children remaining with the family of the

deceased may apply to the court to have all exempt property other

than the homestead set aside by filing an application and a

verified affidavit listing all of the other property that the

applicant claims is exempt.

(c) An applicant under Subsection (b) of this section bears the

burden of proof by a preponderance of the evidence at any hearing

on the application. The court shall set aside property of the

decedent's estate that the court finds is exempt.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 35, ch. 24, Sec. 2, eff. Aug. 27,

1979; Acts 1993, 73rd Leg., ch. 846, Sec. 18, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

551, Sec. 4, eff. September 1, 2005.

Text of article effective until January 01, 2014

Sec. 272. TO WHOM DELIVERED. The exempt property set apart to

the surviving spouse and children shall be delivered by the

executor or administrator without delay as follows: (a) If there

be a surviving spouse and no children, or if the children be the

children of the surviving spouse, the whole of such property

shall be delivered to the surviving spouse. (b) If there be

children and no surviving spouse, such property, except the

homestead, shall be delivered to such children if they be of

lawful age, or to their guardian if they be minors. (c) If there

be children of the deceased of whom the surviving spouse is not

the parent, the share of such children in such exempted property,

except the homestead, shall be delivered to such children if they

be of lawful age, or to their guardian, if they be minors. (d)

In all cases, the homestead shall be delivered to the surviving

spouse, if there be one, and if there be no surviving spouse, to

the guardian of the minor children.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 35, ch. 24, Sec. 3, eff. Aug. 27,

1979.

Amended by:

Acts 2005, 79th Leg., Ch.

551, Sec. 5, eff. September 1, 2005.

Text of article effective until January 01, 2014

Sec. 273. ALLOWANCE IN LIEU OF EXEMPT PROPERTY. In case there

should not be among the effects of the deceased all or any of the

specific articles exempted from execution or forced sale by the

Constitution and laws of this state, the court shall make a

reasonable allowance in lieu thereof, to be paid to such

surviving spouse and children, or such of them as there are, as

hereinafter provided. The allowance in lieu of a homestead shall

in no case exceed $15,000 and the allowance for other exempted

property shall in no case exceed $5,000, exclusive of the

allowance for the support of the surviving spouse and minor

children which is hereinafter provided for.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1977, 65th Leg., p. 351, ch. 172, Sec. 1, eff. Aug. 29,

1977; Acts 1979, 66th Leg., p. 35, ch. 24, Sec. 4, eff. Aug. 27,

1979; Acts 1993, 73rd Leg., ch. 846, Sec. 19, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 274. HOW ALLOWANCE PAID. The allowance made in lieu of any

of the exempted property shall be paid either in money out of the

funds of the estate that come to the hands of the executor or

administrator, or in any property of the deceased that such

surviving spouse or children, if they be of lawful age, or their

guardian if they be minors, shall choose to take at the

appraisement, or a part thereof, or both, as they shall select;

provided, however, that property specifically bequeathed or

devised to another may be so taken, or may be sold to raise funds

for the allowance as hereinafter provided, only if the other

available property shall be insufficient to provide the

allowance.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 36, ch. 24, Sec. 5, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 275. TO WHOM ALLOWANCE PAID. The allowance in lieu of

exempt property shall be paid by the executor or administrator,

as follows: (a) If there be a surviving spouse and no children,

or if all the children be the children of the surviving spouse,

the whole shall be paid to such surviving spouse.

(b) If there be children and no surviving spouse, the whole shall

be paid to and equally divided among them if they be of lawful

age, but if any of such children are minors, their shares shall

be paid to their guardian or guardians.

(c) If there be a surviving spouse, and children of the deceased,

some of whom are not children of the surviving spouse, the

surviving spouse shall receive one-half of the whole, plus the

shares of the children of whom the survivor is the parent, and

the remaining shares shall be paid to the children of whom the

survivor is not the parent, or, if they are minors, to their

guardian.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 36, ch. 24, Sec. 6, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 276. SALE TO RAISE ALLOWANCE. If there be no property of

the deceased that such surviving spouse or children are willing

to take for such allowance, or not a sufficiency, and there be no

funds, or not sufficient funds, of the estate in the hands of

such executor or administrator to pay such allowance, or any part

thereof, the court, on the application in writing of such

surviving spouse and children, shall order a sale of so much of

the estate for cash as will be sufficient to raise the amount of

such allowance, or a part thereof, as the case requires.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 36, ch. 24, Sec. 7, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 277. PREFERENCE OF LIENS. If property upon which there is a

valid subsisting lien or encumbrance shall be set apart to the

surviving spouse or children as exempt property, or appropriated

to make up allowances made in lieu of exempt property or for the

support of the surviving spouse or children, the debts secured by

such lien shall, if necessity requires, be either paid or

continued as against such property. This provision applies to all

estates, whether solvent or insolvent.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 36, ch. 24, Sec. 8, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 278. WHEN ESTATE IS SOLVENT. If, upon a final settlement of

the estate, it shall appear that the same is solvent, the

exempted property, except the homestead or any allowance in lieu

thereof, shall be subject to partition and distribution among the

heirs and distributees of such estate in like manner as the other

property of the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 279. WHEN ESTATE IS INSOLVENT. Should the estate, upon

final settlement, prove to be insolvent, the title of the

surviving spouse and children to all the property and allowances

set apart or paid to them under the provisions of this Code shall

be absolute, and shall not be taken for any of the debts of the

estate except as hereinafter provided.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 9, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 280. EXEMPT PROPERTY NOT CONSIDERED IN DETERMINING SOLVENCY.

In ascertaining whether an estate is solvent or insolvent, the

exempt property set apart to the surviving spouse or children, or

the allowance in lieu thereof, and the family allowance

hereinafter provided for, shall not be estimated or considered as

assets of the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 10, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 281. EXEMPT PROPERTY LIABLE FOR CERTAIN DEBTS. The exempt

property, other than the homestead or any allowance made in lieu

thereof, shall be liable for the payment of Class 1 claims, but

such property shall not be liable for any other debts of the

estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1997, 75th Leg., ch. 1302, Sec. 10, eff. Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 282. NATURE OF HOMESTEAD PROPERTY IMMATERIAL. The homestead

rights of the surviving spouse and children of the deceased are

the same whether the homestead be the separate property of the

deceased or community property between the surviving spouse and

the deceased, and the respective interests of such surviving

spouse and children shall be the same in one case as in the

other.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 11, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 283. HOMESTEAD RIGHTS OF SURVIVING SPOUSE. On the death of

the husband or wife, leaving a spouse surviving, the homestead

shall descend and vest in like manner as other real property of

the deceased and shall be governed by the same laws of descent

and distribution.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 12, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 284. WHEN HOMESTEAD NOT PARTITIONED. The homestead shall

not be partitioned among the heirs of the deceased during the

lifetime of the surviving spouse, or so long as the survivor

elects to use or occupy the same as a homestead, or so long as

the guardian of the minor children of the deceased is permitted,

under the order of the proper court having jurisdiction, to use

and occupy the same.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 13, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 285. WHEN HOMESTEAD CAN BE PARTITIONED. When the surviving

spouse dies or sells his or her interest in the homestead, or

elects no longer to use or occupy the same as a homestead, or

when the proper court no longer permits the guardian of the minor

children to use and occupy the same as a homestead, it may be

partitioned among the respective owners thereof in like manner as

other property held in common.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 37, ch. 24, Sec. 14, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 286. FAMILY ALLOWANCE TO SURVIVING SPOUSES AND MINORS. (a)

Unless an affidavit is filed under Subsection (b) of this

section, immediately after the inventory, appraisement, and list

of claims have been approved, the court shall fix a family

allowance for the support of the surviving spouse and minor

children of the deceased.

(b) Before the approval of the inventory, appraisement, and list

of claims, a surviving spouse or any person who is authorized to

act on behalf of minor children of the deceased may apply to the

court to have the court fix the family allowance by filing an

application and a verified affidavit describing the amount

necessary for the maintenance of the surviving spouse and minor

children for one year after the date of the death of the decedent

and describing the spouse's separate property and any property

that minor children have in their own right. The applicant bears

the burden of proof by a preponderance of the evidence at any

hearing on the application. The court shall fix a family

allowance for the support of the surviving spouse and minor

children of the deceased.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 38, ch. 24, Sec. 15, eff. Aug. 27,

1979; Acts 1993, 73rd Leg., ch. 846, Sec. 20, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 287. AMOUNT OF FAMILY ALLOWANCE. Such allowance shall be of

an amount sufficient for the maintenance of such surviving spouse

and minor children for one year from the time of the death of the

testator or intestate. The allowance shall be fixed with regard

to the facts or circumstances then existing and those anticipated

to exist during the first year after such death. The allowance

may be paid either in a lump sum or in installments, as the court

shall order.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 38, ch. 24, Sec. 16, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 288. WHEN FAMILY ALLOWANCE NOT MADE. No such allowance

shall be made for the surviving spouse when the survivor has

separate property adequate to the survivor's maintenance; nor

shall such allowance be made for the minor children when they

have property in their own right adequate to their maintenance.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 38, ch. 24, Sec. 17, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 289. ORDER FIXING FAMILY ALLOWANCE. When an allowance has

been fixed, an order shall be entered stating the amount thereof,

providing how the same shall be payable, and directing the

executor or administrator to pay the same in accordance with law.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 290. FAMILY ALLOWANCE PREFERRED. The family allowance made

for the support of the surviving spouse and minor children of the

deceased shall be paid in preference to all other debts or

charges against the estate, except Class 1 claims.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 38, ch. 24, Sec. 18, eff. Aug. 27,

1979; Acts 1997, 75th Leg., ch. 1302, Sec. 11, eff. Sept. 1,

1997.

Text of article effective until January 01, 2014

Sec. 291. TO WHOM FAMILY ALLOWANCE PAID. The executor or

administrator shall apportion and pay the family allowance:

(a) To the surviving spouse, if there be one, for the use of the

survivor and the minor children, if such children be the

survivor's.

(b) If the surviving spouse is not the parent of such minor

children, or of some of them, the portion of such allowance

necessary for the support of such minor child or children of

which the survivor is not the parent shall be paid to the

guardian or guardians of such child or children.

(c) If there be no surviving spouse, the allowance to the minor

child or children shall be paid to the guardian or guardians of

such minor child or children.

(d) If there be a surviving spouse and no minor child or

children, the entire allowance shall be paid to the surviving

spouse.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 38, ch. 24, Sec. 19, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 292. MAY TAKE PROPERTY FOR FAMILY ALLOWANCE. The surviving

spouse, or the guardian of the minor children, as the case may

be, shall have the right to take in payment of such allowance, or

any part thereof, any of the personal property of the estate at

its appraised value as shown by the appraisement; provided,

however, that property specifically devised or bequeathed to

another may be so taken, or may be sold to raise funds for the

allowance as hereinafter provided, only if the other available

property shall be insufficient to provide the allowance.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 39, ch. 24, Sec. 20, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 293. SALE TO RAISE FUNDS FOR FAMILY ALLOWANCE. If there be

no personal property of the deceased that the surviving spouse or

guardian is willing to take for such allowance, or not a

sufficiency of them, and if there be no funds or not sufficient

funds in the hands of such executor or administrator to pay such

allowance, or any part thereof, then the court, as soon as the

inventory, appraisement, and list of claims are returned and

approved, shall order a sale of so much of the estate for cash as

will be sufficient to raise the amount of such allowance, or a

part thereof, as the case requires.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 39, ch. 24, Sec. 21, eff. Aug. 27,

1979.

PART 4. PRESENTMENT AND PAYMENT OF CLAIMS

Text of article effective until January 01, 2014

Sec. 294. NOTICE BY REPRESENTATIVE OF APPOINTMENT. (a) Giving of

Notice Required. Within one month after receiving letters,

personal representatives of estates shall send to the comptroller

of public accounts by certified or registered mail if the

decedent remitted or should have remitted taxes administered by

the comptroller of public accounts and publish in some newspaper,

printed in the county where the letters were issued, if there be

one, a notice requiring all persons having claims against the

estate being administered to present the same within the time

prescribed by law. The notice shall include the date of issuance

of letters held by the representative, the address to which

claims may be presented, and an instruction of the

representative's choice that claims be addressed in care of the

representative, in care of the representative's attorney, or in

care of "Representative, Estate of __________" (naming the

estate).

(b) Proof of Publication. A copy of such printed notice, together

with the affidavit of the publisher, duly sworn to and subscribed

before a proper officer, to the effect that the notice was

published as provided in this Code for the service of citation or

notice by publication, shall be filed in the court where the

cause is pending.

(c) When No Newspaper Printed in the County. When no newspaper is

printed in the county, the notice shall be posted and the return

made and filed as required by this Code.

(d) Permissive Notice to Unsecured Creditors. At any time before

an estate administration is closed, the personal representative

may give notice by certified or registered mail, with return

receipt requested, to an unsecured creditor having a claim for

money against the estate expressly stating that the creditor must

present a claim within four months after the date of the receipt

of the notice or the claim is barred, if the claim is not barred

by the general statutes of limitation. The notice must include:

(1) the dates of issuance of letters held by the representative;

(2) the address to which claims may be presented; and

(3) an instruction of the representative's choice that the claim

be addressed in care of:

(A) the representative;

(B) the representative's attorney; or

(C) "Representative, Estate of " (naming the estate).

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1981, 67th Leg., p. 243, ch. 102, Sec. 9, eff. Aug. 31,

1981; Acts 1991, 72nd Leg., ch. 464, Sec. 1, eff. Aug. 26, 1991;

Acts 1995, 74th Leg., ch. 1054, Sec. 2, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 295. NOTICE TO HOLDERS OF SECURED CLAIMS. (a) When notice

required for secured claimants. Within two months after receiving

letters, the personal representative of an estate shall give

notice of the issuance of such letters to each and every person

known to the personal representative to have a claim for money

against the estate of a decedent that is secured by real or

personal property of the estate. Within a reasonable time after

the personal representative obtains actual knowledge of the

existence of a person having a secured claim for money and to

whom notice was not previously given, the personal representative

shall give notice to the person of the issuance of letters.

(b) How notice shall be given. The notice stating the original

grant of letters shall be given by mailing same by certified or

registered mail, with return receipt requested, addressed to the

record holder of such indebtedness or claim at the record

holder's last known post office address.

(c) Proof of service of notice. A copy of each notice required by

Subsection (a) of this section and a copy of the return receipt

and an affidavit of the representative, stating that said notice

was mailed as required by law, giving the name of the person to

whom the notice was mailed, if not shown on the notice or

receipt, shall be filed with the clerk of the court from which

letters were issued.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1987, 70th Leg., ch. 461, Sec. 1, eff. Sept. 1, 1987;

Acts 1991, 72nd Leg., ch. 895, Sec. 13, eff. Sept. 1, 1991; Acts

1993, 73rd Leg., ch. 957, Sec. 46, eff. Sept. 1, 1993; Acts 1995,

74th Leg., ch. 1054, Sec. 3, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 296. ONE NOTICE SUFFICIENT. If the notices required by the

two preceding Sections have been given by a former

representative, or by one where several are acting, that shall be

sufficient, and need not be repeated by any successor or

co-representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 297. PENALTY FOR FAILURE TO GIVE NOTICE. If the

representative fails to give the notices required in preceding

Sections, or to cause such notices to be given, the

representative and the sureties on the representative's bond

shall be liable for any damage which any person suffers by reason

of such neglect, unless it appears that such person had notice

otherwise.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 4, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 298. CLAIMS AGAINST ESTATES OF DECEDENTS. (a) Time for

Presentation of Claims. A claim may be presented to the personal

representative at any time before the estate is closed if suit on

the claim has not been barred by the general statutes of

limitation. If a claim of an unsecured creditor for money is not

presented within four months after the date of receipt of the

notice permitted by Section 294(d), the claim is barred.

(b) Claims Barred by Limitation Not to Be Allowed or Approved. No

claims for money against a decedent, or against the estate of the

decedent, on which a suit is barred under Subsection (a) of this

section, Section 313, or Section 317(a) or by a general statute

of limitation applicable thereto shall be allowed by a personal

representative. If allowed by the representative and the court is

satisfied that the claim is barred or that limitation has run,

the claim shall be disapproved.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1971, 62nd Leg., p. 2992, ch. 988, Sec. 1, eff. June 15,

1971; Acts 1993, 73rd Leg., ch. 957, Sec. 47, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 5, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 299. TOLLING OF GENERAL STATUTES OF LIMITATION. The general

statutes of limitation are tolled on the date:

(1) a claim for money is filed or deposited with the clerk; or

(2) suit is brought against the personal representative of an

estate with respect to a claim of the estate that is not required

to be presented to the personal representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1997, 75th Leg., ch. 1302, Sec. 12, eff. Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 301. CLAIMS FOR MONEY MUST BE AUTHENTICATED. No personal

representative of a decedent's estate shall allow, and the court

shall not approve, a claim for money against such estate, unless

such claim be supported by an affidavit that the claim is just

and that all legal offsets, payments, and credits known to the

affiant have been allowed. If the claim is not founded on a

written instrument or account, the affidavit shall also state the

facts upon which the claim is founded. A photostatic copy of any

exhibit or voucher necessary to prove a claim may be offered with

and attached to the claim in lieu of the original.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 48, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 6, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 302. WHEN DEFECTS OF FORM ARE WAIVED. Any defect of form,

or claim of insufficiency of exhibits or vouchers presented,

shall be deemed waived by the personal representative unless

written objection thereto has been made within thirty days after

presentment of the claim, and filed with the county clerk.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 303. EVIDENCE CONCERNING LOST OR DESTROYED CLAIMS. If

evidence of a claim is lost or destroyed, the claimant or an

authorized representative or agent of the claimant, may make

affidavit to the fact of such loss or destruction, stating the

amount, date, and nature of the claim and when due, and that the

same is just, and that all legal offsets, payments and credits

known to the affiant have been allowed, and that the claimant is

still the owner of the claim; and the claim must be proved by

disinterested testimony taken in open court, or by oral or

written deposition, before the claim is approved. If such claim

is allowed or approved without such affidavit, or if it is

approved without satisfactory proof, such allowance or approval

shall be void.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 7, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 304. AUTHENTICATION OF CLAIM BY OTHERS THAN INDIVIDUAL

OWNERS. An authorized officer or representative of a corporation

or other entity shall make the affidavit required to authenticate

a claim of such corporation or entity. When an affidavit is made

by an officer of a corporation, or by an executor, administrator,

trustee, assignee, agent, representative, or attorney, it shall

be sufficient to state in such affidavit that the person making

it has made diligent inquiry and examination, and that he

believes that the claim is just and that all legal offsets,

payments, and credits made known to the affiant have been

allowed.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 49, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 8, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 306. METHOD OF HANDLING SECURED CLAIMS FOR MONEY. (a)

Specifications of Claim. When a secured claim for money against

an estate is presented, the claimant shall specify therein, in

addition to all other matters required to be specified in claims:

(1) Whether it is desired to have the claim allowed and approved

as a matured secured claim to be paid in due course of

administration, in which event it shall be so paid if allowed and

approved; or

(2) Whether it is desired to have the claim allowed, approved,

and fixed as a preferred debt and lien against the specific

property securing the indebtedness and paid according to the

terms of the contract which secured the lien, in which event it

shall be so allowed and approved if it is a valid lien; provided,

however, that the personal representative may pay said claim

prior to maturity if it is for the best interest of the estate to

do so.

(b) Time for Specification of Secured Claim. Within six months

after the date letters are granted, or within four months after

the date notice is received under Section 295 of this code,

whichever is later, the secured creditor may present the

creditor's claim and shall specify whether the claim is to be

allowed and approved under Paragraph (1) or (2) of Subsection (a)

of this section. If a secured claim is not presented within the

time prescribed by this subsection or if the claim is presented

without specifying how the claim is to be paid, it shall be

treated as a claim to be paid in accordance with Paragraph (2) of

Subsection (a) hereof.

(c) Matured Secured Claims. If a claim has been allowed and

approved as a matured secured claim under Paragraph (1) of

Subsection (a) of this section, the claim shall be paid in due

course of administration and the secured creditor is not entitled

to exercise any other remedies in a manner that prevents the

preferential payment of claims and allowances described by

Paragraphs (1) through (3) of Section 320(a) of this code.

(c-1) If a claimant presents a secured claim against an estate

for a debt that would otherwise pass with the property securing

the debt to one or more devisees in accordance with Section

71A(a) of this code and the claim is allowed and approved as a

matured secured claim under Subsection (a)(1) of this section,

the personal representative shall collect from the devisees the

amount of the debt and pay that amount to the claimant in

satisfaction of the claim. Each devisee's share of the debt is

an amount equal to a fraction representing the devisee's

ownership interest in the property, multiplied by the amount of

the debt. If the personal representative is unable to collect

from the devisees an amount sufficient to pay the debt, the

personal representative shall sell the property securing the

debt, subject to Part 5 of this chapter. The personal

representative shall use the sale proceeds to pay the debt and

any expenses associated with the sale and shall distribute the

remaining sale proceeds to each devisee in an amount equal to a

fraction representing the devisee's ownership interest in the

property, multiplied by the amount of the remaining sale

proceeds. If the sale proceeds are insufficient to pay the debt

and any expenses associated with the sale, the difference between

the sum of the amount of the debt and the expenses associated

with the sale and the sale proceeds shall be paid under

Subsection (c) of this section.

(d) Approved Claim as Preferred Lien Against Property. When an

indebtedness has been allowed and approved under Paragraph (2) of

Subsection (a) hereof, no further claim shall be made against

other assets of the estate by reason thereof, but the same

thereafter shall remain a preferred lien against the property

securing same, and the property shall remain security for the

debt in any distribution or sale thereof prior to final maturity

and payment of the debt.

(e) Payment of Maturities on Preferred Debt and Lien Claims. If

property securing a claim allowed, approved, and fixed under

Paragraph (2) of Subsection (a) hereof is not sold or distributed

within six months from the date letters are granted, the

representative of the estate shall promptly pay all maturities

which have accrued on the debt according to the terms thereof,

and shall perform all the terms of any contract securing same. If

the representative defaults in such payment or performance, on

application of the claimholder, the court shall:

(1) require the sale of said property subject to the unmatured

part of such debt and apply the proceeds of the sale to the

liquidation of the maturities;

(2) require the sale of the property free of the lien and apply

the proceeds to the payment of the whole debt; or

(3) authorize foreclosure by the claimholder as provided by

Subsections (f) through (k) of this section.

(f) Foreclosure of Preferred Liens. An application by a

claimholder under Subsection (e) of this section to foreclose the

claimholder's lien or security interest on property securing a

claim that has been allowed, approved, and fixed under Paragraph

(2) of Subsection (a) of this section shall be supported by

affidavit of the claimholder that:

(1) describes the property or part of the property to be sold by

foreclosure;

(2) describes the amounts of the claimholder's outstanding debt;

(3) describes the maturities that have accrued on the debt

according to the terms of the debt;

(4) describes any other debts secured by a mortgage, lien, or

security interest against the property that are known by the

claimholder;

(5) contains a statement that the claimholder has no knowledge of

the existence of any debts secured by the property other than

those described by the application; and

(6) requests permission for the claimholder to foreclose the

claimholder's mortgage, lien, or security interest.

(g) Citation. On the filing of an application, the clerk shall

issue citation by personal service to the personal representative

and to any person described by the application as having other

debts secured by a mortgage, lien, or security interest against

the property and by posting to any other person interested in the

estate. The citation must require the person to appear and show

cause why foreclosure should or should not be permitted.

(h) Setting of Hearing on Application. When an application is

filed, the clerk shall immediately notify the judge. The judge

shall schedule in writing a date for a hearing on the

application. The judge may, by entry on the docket or otherwise,

continue the hearing for a reasonable time to allow an interested

person to obtain an appraisal or other evidence concerning the

fair market value of the property that is the subject of the

application. If the interested person requests an unreasonable

time for a continuance, the person must show good cause for the

continuance.

(i) Hearing. (1) At the hearing, if the court finds that there is

a default in payment or performance under the contract that

secures the payment of the claim, the court shall:

(A) require the sale of the property subject to the unmatured

part of the debt and apply the proceeds of the sale to the

liquidation of the maturities;

(B) require the sale of the property free of the lien and apply

the proceeds to the payment of the whole debt; or

(C) authorize foreclosure by the claimholder as provided by

Subsection (f) of this section.

(2) When the court grants a claimholder the right of foreclosure,

the court shall authorize the claimholder to foreclose the

claimholder's mortgage, lien, or security interest in accordance

with the provisions of the document creating the mortgage, lien,

or security interest or in any other manner allowed by law. In

the discretion of the court and based on the evidence presented

at the hearing, the court may fix a minimum price for the

property to be sold by foreclosure that does not exceed the fair

market value of the property. If the court fixes a minimum price,

the property may not be sold at the foreclosure sale for a lower

price.

(j) Appeal. Any person interested in the estate may appeal an

order issued under Subsection (i)(1)(C) of this section.

(k) Unsuccessful Foreclosure. If a foreclosure sale authorized

under this section is conducted and the property is not sold

because no bid at the sale met the minimum price set by the

court, the claimholder may file another application under

Subsection (f) of this section. The court may, in the court's

discretion, eliminate or modify the minimum price requirement and

grant permission for another foreclosure sale.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 50, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 9, eff. Jan. 1, 1996; Acts

1997, 75th Leg., ch. 1302, Sec. 13, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

551, Sec. 6, eff. September 1, 2005.

Text of article effective until January 01, 2014

Sec. 307. CLAIMS PROVIDING FOR ATTORNEY'S FEES. If the

instrument evidencing or supporting a claim provides for

attorney's fees, then the claimant may include as a part of the

claim the portion of such fee that he has paid or contracted to

pay to an attorney to prepare, present, and collect such claim.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 308. DEPOSITING CLAIMS WITH CLERK. Claims may also be

presented by depositing same, with vouchers and necessary

exhibits and affidavit attached, with the clerk, who, upon

receiving same, shall advise the representative of the estate, or

the representative's attorney, by letter mailed to the

representative's last known address, of the deposit of same.

Should the representative fail to act on said claim within thirty

days after it is deposited, then it shall be presumed to be

rejected. Failure of the clerk to give notice as required herein

shall not affect the validity of the presentment or the

presumption of rejection because not acted upon within said

thirty day period. The clerk shall enter a deposited claim on the

claim docket.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 10, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 309. MEMORANDUM OF ALLOWANCE OR REJECTION OF CLAIM. When a

duly authenticated claim against an estate is presented to the

representative, or deposited with the clerk as heretofore

provided, the representative shall, within thirty days after the

claim is presented or deposited, endorse thereon, annex thereto,

or file with the clerk a memorandum signed by the representative,

stating the date of presentation or depositing of the claim, and

that the representative allows or rejects it, or what portion

thereof the representative allows or rejects.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 11, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 310. FAILURE TO ENDORSE OR ANNEX MEMORANDUM. The failure of

a representative of an estate to timely allow or reject a claim

under Section 309 of this code shall constitute a rejection of

the claim. If the claim is thereafter established by suit, the

costs shall be taxed against the representative, individually, or

the representative may be removed on the written complaint of any

person interested in the claim, after personal service of

citation, hearing, and proof, as in other cases of removal.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 12, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 311. WHEN CLAIMS ENTERED IN DOCKET. After a claim against

an estate has been presented to and allowed or rejected by the

personal representative, in whole or in part, the claim must be

filed with the county clerk of the proper county. The clerk shall

enter the claim on the claim docket.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1971, 62nd Leg., p. 2992, ch. 988, Sec. 2, eff. June 15,

1971; Acts 1993, 73rd Leg., ch. 957, Sec. 51, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 13, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 312. CONTEST OF CLAIMS, ACTION BY COURT, AND APPEALS. (a)

Contest of Claims. Any person interested in an estate may, at any

time before the court has acted upon a claim, appear and object

in writing to the approval of the same, or any part thereof, and

in such case the parties shall be entitled to process for

witnesses, and the court shall hear proof and render judgment as

in ordinary suits.

(b) Court's Action Upon Claims. All claims which have been

allowed and entered upon the claim docket for a period of ten

days shall be acted upon by the court and be either approved in

whole or in part or rejected, and they shall also at the same

time be classified by the court.

(c) Hearing on Claims. Although a claim may be properly

authenticated and allowed, if the court is not satisfied that it

is just, the court shall examine the claimant and the personal

representative under oath, and hear other evidence necessary to

determine the issue. If not then convinced that the claim is

just, the court shall disapprove it.

(d) Order of the Court. When the court has acted upon a claim,

the court shall also endorse thereon, or annex thereto, a written

memorandum dated and signed officially, stating the exact action

taken upon such claim, whether approved or disapproved, or

approved in part or rejected in part, and stating the

classification of the claim. Such orders shall have the force and

effect of final judgments.

(e) Appeal. When a claimant or any person interested in an estate

shall be dissatisfied with the action of the court upon a claim,

the claimant or person may appeal therefrom to the courts of

appeals, as from other judgments of the county court in probate

matters.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1975, 64th Leg., p. 2196, ch. 701, Sec. 4, eff. June 21,

1975; Acts 1993, 73rd Leg., ch. 957, Sec. 52, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 14, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 313. SUIT ON REJECTED CLAIM. When a claim or a part thereof

has been rejected by the representative, the claimant shall

institute suit thereon in the court of original probate

jurisdiction in which the estate is pending within ninety days

after such rejection, or the claim shall be barred. When a

rejected claim is sued on, the endorsement made on or annexed

thereto, or any memorandum of rejection filed with respect to the

claim, shall be taken to be true without further proof, unless

denied under oath. When a rejected claim or part thereof has been

established by suit, no execution shall issue, but the judgment

shall be filed in the court in which the cause is pending,

entered upon the claim docket, classified by the court, and

handled as if originally allowed and approved in due course of

administration.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1975, 64th Leg., p. 2196, ch. 701, Sec. 5, eff. June 21,

1975; Acts 1995, 74th Leg., ch. 1054, Sec. 15, eff. Jan. 1, 1996;

Acts 2001, 77th Leg., ch. 10, Sec. 3, eff. Sept. 1, 2001.

Text of article effective until January 01, 2014

Sec. 314. PRESENTMENT OF CLAIMS A PREREQUISITE FOR JUDGMENT. No

judgment shall be rendered in favor of a claimant upon any claim

for money which has not been legally presented to the

representative of an estate, and rejected by the representative

or by the court, in whole or in part.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 53, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 16, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 315. COSTS OF SUIT WITH RESPECT TO CLAIMS. All costs

incurred in the probate court with respect to claims shall be

taxed as follows:

(a) If allowed and approved, the estate shall pay the costs.

(b) If allowed, but disapproved, the claimant shall pay the

costs.

(c) If rejected, but established by suit, the estate shall pay

the costs.

(d) If rejected, but not established by suit, the claimant shall

pay the costs, except as provided by Section 310 of this code.

(e) In suits to establish a claim after rejection in part, if the

claimant fails to recover judgment for a greater amount than was

allowed or approved, the claimant shall pay all costs.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 17, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 316. CLAIMS AGAINST PERSONAL REPRESENTATIVES. The naming of

an executor in a will shall not operate to extinguish any just

claim which the deceased had against the person named as

executor; and, in all cases where a personal representative is

indebted to the testator or intestate, the representative shall

account for the debt in the same manner as if it were cash in the

representative's hands; provided, however, that if said debt was

not due at the time of receiving letters, the representative

shall be required to account for it only from the date when it

becomes due.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 18, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 317. CLAIMS BY PERSONAL REPRESENTATIVES. (a) By Executors

or Administrators. The foregoing provisions of this Code relative

to the presentation of claims against an estate shall not be

construed to apply to any claim of a personal representative

against the testator or intestate; but a personal representative

holding such claim shall file the same in the court granting the

letters, verified by affidavit as required in other cases, within

six months after the representative has qualified, or such claim

shall be barred.

(b) Action on Such Claims. When a claim by a personal

representative has been filed with the court within the required

time, such claim shall be entered upon the claim docket and acted

upon by the court in the same manner as in other cases, and, when

the claim has been acted upon by the court, an appeal from the

judgment of the court may be taken as in other cases.

(c) Provisions Not Applicable to Certain Claims. The foregoing

provisions relative to the presentment of claims shall not be so

construed as to apply to a claim:

(1) of any heir, devisee, or legatee who claims in such capacity;

(2) that accrues against the estate after the granting of letters

for which the representative of the estate has contracted; or

(3) for delinquent ad valorem taxes against a decedent's estate

that is being administered in probate in:

(A) a county other than the county in which the taxes were

imposed; or

(B) the same county in which the taxes were imposed, if the

probate proceedings have been pending for more than four years.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 54, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 19, eff. Jan. 1, 1996; Acts

1999, 76th Leg., ch. 1481, Sec. 37, eff; Sept; 1, 1999.

Text of article effective until January 01, 2014

Sec. 318. CLAIMS NOT ALLOWED AFTER ORDER FOR PARTITION AND

DISTRIBUTION. No claim for money against the estate of a

decedent shall be allowed by a personal representative and no

suit shall be instituted against the representative on any such

claim, after an order for final partition and distribution has

been made; but, after such an order has been made, the owner of

any claim not barred by the laws of limitation shall have an

action thereon against the heirs, devisees, legatees, or

creditors of the estate, limited to the value of the property

received by them in distributions from the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 20, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 319. CLAIMS NOT TO BE PAID UNLESS APPROVED. No claim for

money against the estate of a decedent, or any part thereof,

shall be paid until it has been approved by the court or

established by the judgment of a court of competent jurisdiction.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 55, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 320. ORDER OF PAYMENT OF CLAIMS AND ALLOWANCES. (a)

Priority of Payments. Personal representatives, when they have

funds in their hands belonging to the estate, shall pay in the

following order:

(1) Funeral expenses and expenses of last sickness, in an amount

not to exceed Fifteen Thousand Dollars.

(2) Allowances made to the surviving spouse and children, or to

either.

(3) Expenses of administration and the expenses incurred in the

preservation, safekeeping, and management of the estate.

(4) Other claims against the estate in the order of their

classification.

(b) Sale of Mortgaged Property. If a personal representative has

the proceeds of a sale that has been made for the satisfaction of

a mortgage, lien, or security interest, and the proceeds, or any

part of the proceeds, are not required for the payment of any

debts against the estate that have a preference over the

mortgage, lien, or security interest, the personal representative

shall pay the proceeds to any holder of a mortgage, lien, or

security interest. If there is more than one mortgage, lien, or

security interest against the property, the personal

representative shall pay the holders in the order of the holders'

priority. If the personal representative fails to pay proceeds

under this subsection, a holder, on proof of the failure to pay,

may obtain an order from the court directing the payment to be

made.

(c) Claimant's Petition. A claimant whose claim has not been paid

may petition the court for determination of his claim at any time

before it is barred by the applicable statute of limitations and

upon due proof procure an order for its allowance and payment

from the estate.

(d) Permissive Order of Payment. After the sixth month after the

date letters are granted and on application by the personal

representative stating that the personal representative has no

actual knowledge of any outstanding enforceable claims against

the estate other than the claims already approved and classified

by the court, the court may order the personal representative to

pay any claim that is allowed and approved.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1975, 64th Leg., p. 1818, ch. 554, Sec. 1, eff. Sept. 1,

1975; Acts 1977, 65th Leg., p. 352, ch. 173, Sec. 1, eff. Aug.

29, 1977; Acts 1979, 66th Leg., p. 1876, ch. 758, Sec. 1, eff.

Aug. 27, 1979. Amended by Acts 1987, 70th Leg., ch. 461, Sec. 2,

eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 957, Sec. 56, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1054, Sec. 21, eff. Jan.

1, 1996; Acts 1997, 75th Leg., ch. 540, Sec. 4, eff. Sept. 1,

1997; Acts 1997, 75th Leg., ch. 1361, Sec. 1, eff. Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 320A. FUNERAL EXPENSES. When personal representatives pay

claims for funeral expenses and for items incident thereto, such

as tombstones, grave markers, crypts or burial plots, they shall

charge the whole of such claims to the decedent's estate and

shall charge no part thereof to the community share of a

surviving spouse.

Added by Acts 1967, 60th Leg., p. 768, ch. 321, Sec. 1, eff. May

27, 1967. Amended by Acts 1995, 74th Leg., ch. 1054, Sec. 22,

eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 321. DEFICIENCY OF ASSETS. When there is a deficiency of

assets to pay all claims of the same class, other than secured

claims for money, the claims in such class shall be paid pro

rata, as directed by the court, and in the order directed. No

personal representative shall be allowed to pay the claims,

whether the estate is solvent or insolvent, except with the pro

rata amount of the funds of the estate that have come to hand.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 57, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 23, eff. Jan. 1, 1996.

Text of section as repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10

Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.151

Without reference to the amendment of this section, this section

was repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Sec. 322. CLASSIFICATION OF CLAIMS AGAINST ESTATES OF DECEDENT.

Claims against an estate of a decedent shall be classified and

have priority of payment, as follows:

Class 1. Funeral expenses and expenses of last sickness for a

reasonable amount to be approved by the court, not to exceed a

total of Fifteen Thousand Dollars, with any excess to be

classified and paid as other unsecured claims.

Class 2. Expenses of administration and expenses incurred in the

preservation, safekeeping, and management of the estate,

including fees and expenses awarded under Section 243 of this

code, and unpaid expenses of administration awarded in a

guardianship of the decedent.

Class 3. Secured claims for money under Section 306(a)(1),

including tax liens, so far as the same can be paid out of the

proceeds of the property subject to such mortgage or other lien,

and when more than one mortgage, lien, or security interest shall

exist upon the same property, they shall be paid in order of

their priority.

Class 4. Claims for the principal amount of and accrued interest

on delinquent child support and child support arrearages that

have been confirmed and reduced to money judgment, as determined

under Subchapter F, Chapter 157, Family Code, and claims for

unpaid child support obligations under Section 154.015, Family

Code.

Class 5. Claims for taxes, penalties, and interest due under

Title 2, Tax Code; Chapter 8, Title 132, Revised Statutes;

Section 81.111, Natural Resources Code; the Municipal Sales and

Use Tax Act (Chapter 321, Tax Code); Section 451.404,

Transportation Code; or Subchapter I, Chapter 452, Transportation

Code.

Class 6. Claims for the cost of confinement established by the

Texas Department of Criminal Justice under Section 501.017,

Government Code.

Class 7. Claims for repayment of medical assistance payments

made by the state under Chapter 32, Human Resources Code, to or

for the benefit of the decedent.

Class 8. All other claims.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1971, 62nd Leg., p. 2992, ch. 988, Sec. 3, eff. June 15,

1971; Acts 1979, 66th Leg., p. 869, ch. 394, Sec. 1, eff. Aug.

27, 1979; Acts 1981, 67th Leg., p. 242, ch. 102, Sec. 8, eff.

Aug. 31, 1981; Acts 1981, 67th Leg., p. 1785, ch. 389, Sec. 38A,

39(l), eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 1049, Sec.

51, eff. Sept. 1, 1987; Acts 1987, 70th Leg., ch. 1052, Sec.

2.07, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 2, Sec.

14.27(a)(6), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1035,

Sec. 13, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 1054, Sec.

24, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 165, Sec.

30.243, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1361, Sec.

2, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 69, Sec. 1, eff.

Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1060, Sec. 14, eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

551, Sec. 7, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1404, Sec. 3, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.151, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Text of article effective until January 01, 2014

Sec. 322A. APPORTIONMENT OF TAXES. (a) In this section:

(1) "Estate" means the gross estate of a decedent as determined

for the purpose of estate taxes.

(2) "Estate tax" means any estate, inheritance, or death tax

levied or assessed on the property of a decedent's estate,

because of the death of a person, imposed by federal, state,

local, or foreign law, including the federal estate tax and the

additional inheritance tax imposed by Chapter 211, Tax Code, and

including interest and penalties imposed in addition to those

taxes. Estate tax does not include a tax imposed under Section

2701(d)(1)(A), Internal Revenue Code of 1986 (26 U.S.C. Section

2701(d)).

(3) "Person" includes a trust, natural person, partnership,

association, joint stock company, corporation, government,

political subdivision, or governmental agency.

(4) "Person interested in the estate" means a person, or a

fiduciary on behalf of that person, who is entitled to receive,

or who has received, from a decedent or because of the death of

the decedent, property included in the decedent's estate for

purposes of the estate tax, but does not include a creditor of

the decedent or of the decedent's estate.

(5) "Representative" means the representative, executor, or

administrator of an estate, or any other person who is required

to pay estate taxes assessed against the estate.

(b)(1) The representative shall charge each person interested in

the estate a portion of the total estate tax assessed against the

estate. The portion of each estate tax that is charged to each

person interested in the estate must represent the same ratio as

the taxable value of that person's interest in the estate

included in determining the amount of the tax bears to the total

taxable value of all the interests of all persons interested in

the estate included in determining the amount of the tax. In

apportioning an estate tax under this subdivision, the

representative shall disregard a portion of the tax that is

apportioned under the law imposing the tax, otherwise apportioned

by federal law, or apportioned as otherwise provided by this

section.

(2) Subdivision (1) of this subsection does not apply to the

extent the decedent in a written inter vivos or testamentary

instrument disposing of or creating an interest in property

specifically directs the manner of apportionment of estate tax or

grants a discretionary power of apportionment to another person.

A direction for the apportionment or nonapportionment of estate

tax is limited to the estate tax on the property passing under

the instrument unless the instrument is a will that provides

otherwise.

(3) If under Subdivision (2) of this subsection directions for

the apportionment of an estate tax in two or more instruments

executed by the same person conflict, the instrument disposing of

or creating an interest in the property to be taxed controls. If

directions for the apportionment of estate tax in two or more

instruments executed by different persons conflict, the direction

of the person in whose estate the property is included controls.

(4) Subdivisions (2) and (3) of this subsection do not grant or

enlarge the power of a person to apportion estate tax to property

passing under an instrument created by another person in excess

of the estate tax attributable to the property. Subdivisions (2)

and (3) of this subsection do not apply to the extent federal law

directs a different manner of apportionment.

(c) Any deduction, exemption, or credit allowed by law in

connection with the estate tax inures to a person interested in

the estate as provided by Subsections (d)-(f) of this section.

(d) If the deduction, exemption, or credit is allowed because of

the relationship of the person interested in the estate to the

decedent, or because of the purpose of the gift, the deduction,

exemption, or credit inures to the person having the relationship

or receiving the gift, unless that person's interest in the

estate is subject to a prior present interest that is not

allowable as a deduction. The estate tax apportionable to the

person having the present interest shall be paid from the corpus

of the gift or the interest of the person having the

relationship.

(e) A deduction for property of the estate that was previously

taxed and a credit for gift taxes or death taxes of a foreign

country that were paid by the decedent or his estate inures

proportionally to all persons interested in the estate who are

liable for a share of the estate tax.

(f) A credit for inheritance, succession, or estate taxes, or

taxes of a similar nature applicable to property or interests

includable in the estate, inures to the persons interested in the

estate who are chargeable with payment of a portion of those

taxes to the extent that the credit reduces proportionately those

taxes.

(g) To the extent that property passing to or in trust for a

surviving spouse or a charitable, public, or similar gift or

devise is not an allowable deduction for purposes of the estate

tax solely because of an inheritance tax or other death tax

imposed on and deductible from the property, the property is not

included in the computation provided for by Subsection (b) of

this section, and to that extent no apportionment is made against

the property. The exclusion provided by this subsection does not

apply if the result would be to deprive the estate of a deduction

otherwise allowable under Section 2053(d), Internal Revenue Code

of 1986, relating to deductions for state death taxes on

transfers for public, charitable, or religious uses.

(h) Except as provided by Subsection (i)(3) of this section, an

interest in income, an estate for years or for life, or another

temporary interest in any property or fund is not subject to

apportionment. The estate tax apportionable to the temporary

interest and the remainder, if any, is chargeable against the

corpus of the property or the funds that are subject to the

temporary interest and remainder.

(i)(1) In this subsection, "qualified real property" has the

meaning assigned by Section 2032A, Internal Revenue Code of 1986

(26 U.S.C. Section 2032A).

(2) If an election is made under Section 2032A, Internal Revenue

Code of 1986 (26 U.S.C. Section 2032A), the representative shall

apportion estate taxes according to the amount of federal estate

tax that would be payable if the election were not made. The

amount of the reduction of the estate tax resulting from the

election shall be applied to reduce the amount of the estate tax

allocated based on the value of the qualified real property that

is the subject of the election. If the amount applied to reduce

the taxes allocated based on the value of the qualified real

property is greater than the amount of those taxes, the excess

shall be applied to the portion of the taxes allocated for all

other property. This amount is to be apportioned under Subsection

(b)(1) of this section.

(3) If additional federal estate tax is imposed under Section

2032A(c), Internal Revenue Code of 1986 (26 U.S.C. Section 2032A)

because of an early disposition or cessation of a qualified use,

the additional tax shall be equitably apportioned among the

persons who have an interest in the portion of the qualified real

property to which the additional tax is attributable in

proportion to their interests. The additional tax is a charge

against such qualified real property. If the qualified real

property is split between one or more life or term interests and

remainder interests, the additional tax shall be apportioned to

each person whose action or cessation of use caused the

imposition of additional tax, unless all persons with an interest

in the qualified real property agree in writing to dispose of the

property, in which case the additional tax shall be apportioned

among the remainder interests.

(j) Repealed by Acts 2003, 78th Leg., ch. 1060, Sec. 16.

(k) If the date for the payment of any portion of an estate tax

is extended, the amount of the extended tax shall be apportioned

to the persons who receive the specific property that gives rise

to the extension. Those persons are entitled to the benefits and

shall bear the burdens of the extension.

(l) If federal law directs the apportionment of the federal

estate tax, a similar state tax shall be apportioned in the same

manner.

(m) Interest on an extension of estate tax and interest and

penalties on a deficiency shall be apportioned equitably to

reflect the benefits and burdens of the extension or deficiency

and of any tax deduction associated with the interest and

penalties, but if the assessment or penalty and interest is due

to delay caused by the negligence of the representative, the

representative shall be charged with the amount of assessed

penalty and interest.

(n) If property includable in an estate does not come into

possession of the representative obligated to pay the estate tax,

the representative shall recover from each person interested in

the estate the amount of the estate tax apportioned to the person

under this section or assign to persons affected by the tax

obligation the representative's right of recovery. The obligation

to recover a tax under this subsection does not apply if:

(1) the duty is waived by the parties affected by the tax

obligation or by the instrument under which the representative

derives powers; or

(2) in the reasonable judgment of the representative, proceeding

to recover the tax is not cost-effective.

(o) If a representative cannot collect from a person interested

in the estate an unpaid amount of estate tax apportioned to the

person, the amount not collected shall be apportioned among the

other persons interested in the estate who are subject to

apportionment in the same manner as provided by Subsection (b)(1)

of this section. A person who is charged with or who pays an

apportioned amount under this subsection because another person

failed to pay an amount of estate tax apportioned to the person

has a right of reimbursement for that amount from the person who

failed to pay the tax. The representative may enforce the right

of reimbursement, or the person who is charged with or who pays

an apportioned amount under this subsection may enforce the right

of reimbursement directly by an assignment from the

representative. A person assigned the right under this subsection

is subrogated to the rights of the representative. A

representative who has a right of reimbursement may petition a

court to determine the right of reimbursement.

(p) This section shall be applied after giving effect to any

disclaimers made in accordance with Section 37A of this code.

(q) Interest and penalties assessed against the estate by a

taxing authority shall be apportioned among and charged to the

persons interested in the estate in the manner provided by

Subsection (b) of this section, unless, on application by any

person interested in the estate, the court determines that the

proposed apportionment is not equitable or that the assessment of

interest or penalties was caused by a breach of fiduciary duty of

a representative. If the apportionment is not equitable, the

court may apportion interest and penalties in an equitable

manner. If the assessment of interest or penalties was caused by

a breach of fiduciary duty of a representative, the court may

charge the representative with the amount of the interest and

penalties assessed attributable to his conduct.

(r) Expenses reasonably incurred by a representative in

determination of the amount, apportionment, or collection of the

estate tax shall be apportioned among and charged to persons

interested in the estate in the manner provided by Subsection (b)

of this section unless, on application by any person interested

in the estate, the court determines that the proposed

apportionment is not equitable. If the court determines that the

assessment is not equitable, the court may apportion the expenses

in an equitable manner.

(s) For the purposes of this section, "court" means a court in

which proceedings for administration of the estate are pending or

have been completed or, if no proceedings are pending or have

been completed, a court in which venue lies for the

administration of the estate of the decedent.

(t) A representative who has possession of any property of an

estate that is distributable to a person interested in the estate

may withhold from that property an amount equal to the person's

apportioned share of the estate tax.

(u) A representative shall recover from any person interested in

the estate the unpaid amount of the estate tax apportioned and

charged to the person under this section, unless the

representative determines in good faith that an attempt to

recover this amount would be economically impractical.

(v) A representative required to recover unpaid amounts of estate

tax apportioned to persons interested in the estate under this

section may not be required to initiate the necessary actions

until the expiration of 90 days after the date of the final

determination of the amount of the estate tax by the Internal

Revenue Service. A representative who initiates an action under

this section within a reasonable time after the 90-day period is

not subject to any liability or surcharge because any portion of

the estate tax apportioned to any person interested in the estate

was collectible at a time following the death of the decedent but

thereafter became uncollectible.

(w) A representative acting in another state may initiate an

action in a court of this state to recover a proportionate amount

of the federal estate tax, of an estate tax payable to another

state, or of a death duty due by a decedent's estate to another

state, from a person interested in the estate who is domiciled in

this state or owns property in this state subject to attachment

or execution. In the action, a determination of apportionment by

the court having jurisdiction of the administration of the

decedent's estate in the other state is prima facie correct. This

section applies only if the state in which the determination of

apportionment was made affords a substantially similar remedy.

(x) A reference in this section to a section of the Internal

Revenue Code of 1986 refers to the section as it exists at the

time in question. The reference also includes a corresponding

section of a subsequent Internal Revenue Code and the referenced

section as renumbered if it is renumbered.

(y) The prevailing party in an action initiated by a person for

the collection of estate taxes from a person interested in the

estate to whom estate taxes were apportioned and charged under

Subsection (b) of this section shall be awarded necessary

expenses, including reasonable attorney's fees.

Added by Acts 1987, 70th Leg., ch. 742, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1991, 72nd Leg., ch. 410, Sec. 1, eff.

Sept. 1, 1991.

Subsec. (j) repealed by Acts 2003, 78th Leg., ch. 1060, Sec. 16,

eff. Sept. 1, 2003.

Text of article effective until January 01, 2014

Sec. 322B. ABATEMENT OF BEQUESTS. (a) Except as provided by

Subsections (b)-(d) of this section, a decedent's property is

liable for debts and expenses of administration other than estate

taxes, and bequests abate in the following order:

(1) property not disposed of by will, but passing by intestacy;

(2) personal property of the residuary estate;

(3) real property of the residuary estate;

(4) general bequests of personal property;

(5) general devises of real property;

(6) specific bequests of personal property; and

(7) specific devises of real property.

(b) This section does not affect the requirements for payment of

a claim of a secured creditor who elects to have the claim

continued as a preferred debt and lien against specific property

under Section 306 of this code.

(c) This section does not apply to the payment of estate taxes

under Section 322A of this code.

(d) A decedent's intent, as expressed in a will, controls over

the abatement of bequests provided by this section.

Added by Acts 1987, 70th Leg., ch. 742, Sec. 2, eff. Sept. 1,

1987.

Text of article effective until January 01, 2014

Sec. 323. JOINT OBLIGATION. When two or more persons are jointly

bound for the payment of a debt, or for any other purpose, upon

the death of any of the persons so bound, the decedent's estate

shall be charged by virtue of such obligation in the same manner

as if the obligors had been bound severally as well as jointly.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 25, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 324. REPRESENTATIVES NOT TO PURCHASE CLAIMS. It shall be

unlawful, and cause for removal, for a personal representative

whether acting under appointment by will or under orders of the

court, to purchase for the personal representative's own use or

for any purposes whatsoever, any claim against the estate the

personal representative represents. Upon written complaint by any

person interested in the estate, and satisfactory proof of

violation of this provision, after citation and hearing, the

court shall enter its order cancelling the claim, and no part

thereof shall be paid out of the estate; and the court may, in

the court's discretion, remove such representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 58, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 1054, Sec. 26, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 326. OWNER MAY OBTAIN ORDER FOR PAYMENT. Any creditor of an

estate of a decedent whose claim, or part thereof, has been

approved by the court or established by suit, may, at any time

after twelve months from the granting of letters testamentary,

upon written application and proof showing that the estate has on

hand sufficient available funds, obtain an order directing that

payment be made; or, if there are no available funds, and if to

await the receipt of funds from other sources would unreasonably

delay payment, the court shall then order sale of property of the

estate sufficient to pay the claim; provided, the representative

of the estate shall have first been cited on such written

complaint to appear and show cause why such order should not be

made.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 328. LIABILITY FOR NONPAYMENT OF CLAIMS. (a) Procedure to

Force Payment. If any representative of an estate shall fail to

pay on demand any money ordered by the court to be paid to any

person, except to the State Treasury, when there are funds of the

estate available, the person or claimant entitled to such

payment, upon affidavit of the demand and failure to pay, shall

be authorized to have execution issued against the property of

the estate for the amount due, with interest and costs; or

(b) Penalty Against Representative. Upon return of the execution

not satisfied, or merely upon the affidavit of demand and failure

to pay, the court may cite the representative and the sureties on

the representative's bond to show cause why they should not be

held liable for such debt, interest, costs, and damages. Upon

return of citation duly served, if good cause to the contrary be

not shown, the court shall render judgment against the

representative and sureties so cited, in favor of the holder of

such claim, for the amount theretofore ordered to be paid or

established by suit, and remaining unpaid, together with interest

and costs, and also for damages upon the amount neglected to be

paid, at the rate of five per cent per month for each month, or

fraction thereof, that the payment was neglected to be paid after

demand made therefor, which damages may be collected in any court

of competent jurisdiction.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1995, 74th Leg., ch. 1054, Sec. 27, eff. Jan. 1, 1996.

Text of article effective until January 01, 2014

Sec. 329. BORROWING MONEY. (a) Circumstances Under Which Money

May Be Borrowed. Any real or personal property of an estate may

be mortgaged or pledged by deed of trust or otherwise as security

for an indebtedness, under order of the court, when necessary for

any of the following purposes:

(1) For the payment of any ad valorem, income, gift, estate,

inheritance, or transfer taxes upon the transfer of an estate or

due from a decedent or the estate, regardless of whether such

taxes are assessed by a state, or any of its political

subdivisions, or by the federal government or by a foreign

country; or

(2) For payment of expenses of administration, including sums

necessary for operation of a business, farm, or ranch owned by

the estate; or

(3) For payment of claims allowed and approved, or established by

suit, against the estate; or

(4) To renew and extend a valid, existing lien.

(b) Procedure for Borrowing Money. When it is necessary to borrow

money for any of the aforementioned purposes, or to create or

extend a lien upon property of the estate as security, a sworn

application for such authority shall be filed with the court,

stating fully and in detail the circumstances which the

representative of the estate believes make necessary the granting

of such authority. Thereupon, the clerk shall issue and cause to

be posted a citation to all interested persons, stating the

nature of the application and requiring such persons, if they

choose so to do, to appear and show cause, if any, why such

application should not be granted.

(c) Order Authorizing Such Borrowing, or Extension of Lien. The

court, if satisfied by the evidence adduced at the hearing upon

said application that it is to the interest of the estate to

borrow money, or to extend and renew an existing lien, shall

issue its order to that effect, setting out the terms and

conditions of the authority granted; provided, however, the loan

or renewal shall not be for a term longer than three years from

the granting of original letters to the representative of such

estate, but the court may authorize an extension of such lien for

not more than one additional year without further citation or

notice. If a new lien is created on property of an estate, the

court may require that the representative's general bond be

increased, or an additional bond given, for the protection of the

estate and the creditors, as for the sale of real property

belonging to the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1973, 63rd Leg., p. 408, ch. 182, Sec. 3, eff. May 25,

1973; Acts 1987, 70th Leg., ch. 766, Sec. 1, eff. Aug. 31, 1987;

Acts 1993, 73rd Leg., ch. 957, Sec. 59, eff. Sept. 1, 1993; Acts

1995, 74th Leg., ch. 1054, Sec. 28, eff. Jan. 1, 1996.

PART 5. SALES

Text of article effective until January 01, 2014

Sec. 331. COURT MUST ORDER SALES. Except as hereinafter

provided, no sale of any property of an estate shall be made

without an order of court authorizing the same. The court may

order property sold for cash or on credit, at public auction or

privately, as it may consider most to the advantage of the

estate, except when otherwise specially provided herein.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 332. SALES AUTHORIZED BY WILL. Whenever by the terms of a

will an executor is authorized to sell any property of the

testator, no order of court shall be necessary to authorize the

executor to make such sale, and the sale may be made at public

auction or privately as the executor deems to be in the best

interest of the estate and may be made for cash or upon such

credit terms as the executor shall determine; provided, that when

particular directions are given by a testator in his will

respecting the sale of any property belonging to his estate, the

same shall be followed, unless such directions have been annulled

or suspended by order of the court.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 333. CERTAIN PERSONAL PROPERTY TO BE SOLD. (a) The

representative of an estate, after approval of inventory and

appraisement, shall promptly apply for an order of the court to

sell at public auction or privately, for cash or on credit not

exceeding six months, all of the estate that is liable to perish,

waste, or deteriorate in value, or that will be an expense or

disadvantage to the estate if kept. Property exempt from forced

sale, specific legacies, and personal property necessary to carry

on a farm, ranch, factory, or any other business which it is

thought best to operate, shall not be included in such sales.

(b) In determining whether to order the sale of an asset under

Subsection (a) of this section, the court shall consider:

(1) the representative's duty to take care of and manage the

estate as a person of ordinary prudence, discretion, and

intelligence would exercise in the management of the person's own

affairs; and

(2) whether the asset constitutes an asset that a trustee is

authorized to invest under Chapter 117 or Subchapter F, Chapter

113, Property Code.

Added by Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Amended by Acts 1993, 73rd Leg., ch. 846, Sec. 21, eff. Sept. 1,

1993.

Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 14, eff. Jan. 1,

2004.

Text of article effective until January 01, 2014

Sec. 334. SALES OF OTHER PERSONAL PROPERTY. Upon application by

the personal representative of the estate or by any interested

person, the court may order the sale of any personal property of

the estate not required to be sold by the preceding Section,

including growing or harvested crops or livestock, but not

including exempt property or specific legacies, if the court

finds that so to do would be in the best interest of the estate

in order to pay expenses of administration, funeral expenses,

expenses of last illness, allowances, or claims against the

estate, from the proceeds of the sale of such property. In so far

as possible, applications and orders for the sale of personal

property shall conform to the requirements hereinafter set forth

for applications and orders for the sale of real estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 335. SPECIAL PROVISIONS PERTAINING TO LIVESTOCK. When the

personal representative of an estate has in his possession any

livestock which he deems necessary or to the advantage of the

estate to sell, he may, in addition to any other method provided

by law for the sale of personal property, obtain authority from

the court in which the estate is pending to sell such livestock

through a bonded livestock commission merchant, or a bonded

livestock auction commission merchant. Such authority may be

granted by the court upon written and sworn application by the

personal representative, or by any person interested in the

estate, describing the livestock sought to be sold, and setting

out the reasons why it is deemed necessary or to the advantage of

the estate that the application be granted. The court shall

forthwith consider any such application, and may, in its

discretion, hear evidence for or against the same, with or

without notice, as the facts warrant. If the application be

granted, the court shall enter its order to that effect, and

shall authorize delivery of the livestock to any bonded livestock

commission merchant or bonded livestock auction commission

merchant for sale in the regular course of business. The

commission merchant shall be paid his usual and customary

charges, not to exceed five per cent of the sale price, for the

sale of such livestock. A report of such sale, supported by a

verified copy of the merchant's account of sale, shall be made

promptly by the personal representative to the court, but no

order of confirmation by the court is required to pass title to

the purchaser of such livestock.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 2001, 77th Leg., ch. 443, Sec. 1, eff. Sept. 1, 2001.

Text of article effective until January 01, 2014

Sec. 336. SALES OF PERSONAL PROPERTY AT PUBLIC AUCTION. All

sales of personal property at public auction shall be made after

notice has been issued by the representative of the estate and

posted as in case of posting for original proceedings in probate,

unless the court shall otherwise direct.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 337. SALES OF PERSONAL PROPERTY ON CREDIT. No more than six

months credit may be allowed when personal property is sold at

public auction, based upon the date of such sale. The purchaser

shall be required to give his note for the amount due, with good

and solvent personal security, before delivery of such property

can be made to him, but security may be waived if delivery is not

to be made until the note, with interest, has been paid.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 338. SALE OF MORTGAGED PROPERTY. Any creditor holding a

claim secured by a valid mortgage or other lien, which has been

allowed and approved or established by suit, may obtain from the

court in which the estate is pending an order that said property,

or so much thereof as necessary to satisfy his claim, shall be

sold, by filing his written application therefor. Upon the filing

of such application, the clerk shall issue citation requiring the

representative of the estate to appear and show cause why such

application should not be granted. If it appears to the court

that it would be advisable to discharge the lien out of the

general assets of the estate or that it be refinanced, he may so

order; otherwise, he shall grant the application and order that

the property be sold at public or private sale, as deemed best,

as in ordinary cases of sales of real estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 339. SALES OF PERSONAL PROPERTY TO BE REPORTED; DECREE VESTS

TITLE. All sales of personal property shall be reported to the

court, and the laws regulating sales of real estate as to

confirmation or disapproval of sales shall apply, but no

conveyance shall be necessary. The decree confirming the sale of

personal property shall vest the right and title of the estate of

the intestate in the purchaser who has complied with the terms of

the sale, and shall be prima facie evidence that all requirements

of the law in making the sale have been met. The representative

of an estate may, upon request, issue a bill of sale without

warranty to the purchaser as evidence of title, the expense

thereof to be borne by the purchaser.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 60, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 340. SELECTION OF REAL PROPERTY TO BE SOLD FOR PAYMENT OF

DEBTS. Real property of the estate which is selected to be sold

for the payment of expenses or claims shall be that which the

court deems most advantageous to the estate to be sold.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 341. APPLICATION FOR SALE OF REAL ESTATE. Application may

be made to the court for an order to sell property of the estate

when it appears necessary or advisable in order to:

(1) Pay expenses of administration, funeral expenses and expenses

of last sickness of decedents, and allowances and claims against

the estates of decedents.

(2) Dispose of any interest in real property of the estate of a

decedent, when it is deemed to the best interest of the estate to

sell such interest.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1969, 61st Leg., p. 2030, ch. 695, Sec. 1, eff. June 12,

1969; Acts 1973, 63rd Leg., p. 408, ch. 182, Sec. 4, eff. May 25,

1973; Acts 1975, 64th Leg., p. 975, ch. 372, Sec. 1, eff. June

19, 1975; Acts 1975, 64th Leg., p. 976, ch. 373, Sec. 1, eff.

June 19, 1975; Acts 1979, 66th Leg., p. 1755, ch. 713, Sec. 27,

eff. Aug. 27, 1979; Acts 1993, 73rd Leg., ch. 957, Sec. 61, eff.

Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 342. CONTENTS OF APPLICATION FOR SALE OF REAL ESTATE. An

application for the sale of real estate shall be in writing,

shall describe the real estate or interest in or part thereof

sought to be sold, and shall be accompanied by an exhibit,

verified by affidavit, showing fully and in detail the condition

of the estate, the charges and claims that have been approved or

established by suit, or that have been rejected and may yet be

established, the amount of each such claim, the property of the

estate remaining on hand liable for the payment of such claims,

and any other facts tending to show the necessity or advisability

of such sale.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 344. CITATION ON APPLICATION. Upon the filing of such

application and exhibit, the clerk shall issue a citation to all

persons interested in the estate, describing the land or interest

or part thereof sought to be sold, and informing them of the

right under Section 345 of this code to file an opposition to the

sale during the period prescribed by the court as shown in the

citation, if they so elect. Service of such citation shall be by

posting.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1170, Sec. 9.01, eff. September 1, 2007.

Text of article effective until January 01, 2014

Sec. 345. OPPOSITION TO APPLICATION. When an application for an

order of sale is made, any person interested in the estate may,

during the period provided in the citation issued under Section

344 of this code, file his opposition to the sale, in writing, or

may make application for the sale of other property of the

estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1170, Sec. 9.02, eff. September 1, 2007.

Text of article effective until January 01, 2014

Sec. 345A. HEARING ON APPLICATION AND ANY OPPOSITION. (a) The

clerk of a court in which an application for an order of sale is

filed shall immediately call to the attention of the judge any

opposition to the sale that is filed during the period provided

in the citation issued under Section 344 of this code. The court

shall hold a hearing on an application if an opposition to the

sale is filed during the period provided in the citation.

(b) A hearing on an application for an order of sale is not

required under this section if no opposition to the application

is filed during the period provided in the citation. The court,

in its discretion, may determine that a hearing is necessary on

the application even if no opposition was filed during that

period.

(c) If the court orders a hearing under Subsection (a) or (b) of

this section, the court shall designate in writing a date and

time for hearing the application and any opposition, together

with the evidence pertaining to the application and opposition.

The clerk shall issue a notice to the applicant and to each

person who files an opposition to the sale, if applicable, of the

date and time of the hearing.

(d) The judge may, by entries on the docket, continue a hearing

held under this section from time to time until the judge is

satisfied concerning the application.

Added by Acts 2007, 80th Leg., R.S., Ch.

1170, Sec. 9.03, eff. September 1, 2007.

Text of article effective until January 01, 2014

Sec. 346. ORDER OF SALE. If satisfied that the sale of the

property of the estate described in the application is necessary

or advisable, the court shall order the sale to be made;

otherwise, the court may deny the application and may, if it

deems best, order the sale of other property the sale of which

would be more advantageous to the estate. An order for the sale

of real estate shall specify:

(a) The property to be sold, giving such description as will

identify it; and

(b) Whether the property is to be sold at public auction or at

private sale, and, if at public auction, the time and place of

such sale; and

(c) The necessity or advisability of the sale and its purpose;

and

(d) Except in cases in which no general bond is required, that,

having examined the general bond of the representative of the

estate, the court finds it to be sufficient as required by law,

or finds the same to be insufficient and specifies the necessary

or increased bond, as the case may be; and

(e) That the sale shall be made and the report returned in

accordance with law; and

(f) The terms of the sale.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1170, Sec. 9.04, eff. September 1, 2007.

Text of article effective until January 01, 2014

Sec. 347. PROCEDURE WHEN REPRESENTATIVE NEGLECTS TO APPLY FOR

SALE. When the representative of an estate neglects to apply for

an order to sell sufficient property to pay the charges and

claims against the estate that have been allowed and approved, or

established by suit, any interested person may, upon written

application, cause such representative to be cited to appear and

make a full exhibit of the condition of such estate, and show

cause why a sale of the property should not be ordered. Upon

hearing such application, if the court is satisfied that a sale

of the property is necessary or advisable in order to satisfy

such claims, it shall enter an order of sale as provided in the

preceding Section.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 348. PERMISSIBLE TERMS OF SALE OF REAL ESTATE. (a) For Cash

or Credit. The real estate may be sold for cash, or for part cash

and part credit, or the equity in land securing an indebtedness

may be sold subject to such indebtedness, or with an assumption

of such indebtedness, at public or private sale, as appears to

the court to be for the best interest of the estate. When real

estate is sold partly on credit, the cash payment shall not be

less than one-fifth of the purchase price, and the purchaser

shall execute a note for the deferred payments payable in

monthly, quarterly, semi-annual or annual installments, of such

amounts as appears to the court to be for the best interest of

the estate, to bear interest from date at a rate of not less than

four percent (4%) per annum, payable as provided in such note.

Default in the payment of principal or interest, or any part

thereof when due, shall, at the election of the holder of such

note, mature the whole debt. Such note shall be secured by

vendor's lien retained in the deed and in the note upon the

property sold, and be further secured by deed of trust upon the

property sold, with the usual provisions for foreclosure and sale

upon failure to make the payments provided in the deed and notes.

(b) Reconveyance Upon Redemption. When an estate owning real

estate by virtue of foreclosure of vendor's lien or mortgage

belonging to the estate, either by judicial sale or by a

foreclosure suit or through sale under deed of trust or by

acceptance of a deed in cancellation of a lien or mortgage owned

by the estate, and it appears to the court that an application to

redeem the property foreclosed upon has been made by the former

owner of the real estate to any corporation or agency now created

or hereafter to be created by any Act or Acts of the Congress of

the United States or of the State of Texas in connection with

legislation for the relief of owners of mortgaged or encumbered

homes, farms, ranches, or other real estate, and it further

appears to the court that it would be to the best interest of the

estate to own bonds of one of the above named federal or state

corporations or agencies instead of the real estate, then upon

proper application and proof, the court may dispense with the

provisions of credit sales as provided above, and may order

reconveyance of the property to the former mortgage debtor, or

former owner, reserving vendor's lien notes for the total amount

of the indebtedness due or for the total amount of bonds which

the corporation or agency above named is under its rules and

regulations allowed to advance, and, upon obtaining such an

order, it shall be proper for the representative to indorse and

assign the notes so obtained over to any one of the corporations

or agencies above named in exchange for bonds of that corporation

or agency.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1959, 56th Leg., p. 636, ch. 290, Sec. 1, eff. May 30,

1959.

Text of article effective until January 01, 2014

Sec. 349. PUBLIC SALES OF REAL ESTATE. (a) Notice of Sale.

Except as hereinafter provided, all public sales of real estate

shall be advertised by the representative of the estate by a

notice published in the county in which the estate is pending, as

provided in this Code for publication of notices or citations.

Reference shall be made to the order of sale, the time, place,

and the required terms of sale, and a brief description of the

property to be sold shall be given. It need not contain field

notes, but if rural property, the name of the original survey,

the number of acres, its locality in the county, and the name by

which the land is generally known, if any, shall be given.

(b) Method of Sale. All public sales of real estate shall be made

at public auction to the highest bidder.

(c) Time and Place of Sale. All such sales shall be made in the

county in which the proceedings are pending, at the courthouse

door of said county, or other place in such county where sales of

real estate are specifically authorized to be made, on the first

Tuesday of the month after publication of notice shall have been

completed, between the hours of ten o'clock A.M. and four o'clock

P.M., provided, that if deemed advisable by the court, he may

order such sale to be made in the county in which the land is

situated, in which event notice shall be published both in such

county and in the county where the proceedings are pending.

(d) Continuance of Sales. If sales are not completed on the day

advertised, they may be continued from day to day by making

public announcement verbally of such continuance at the

conclusion of the sale each day, such continued sales to be

within the same hours as hereinbefore prescribed. If sales are so

continued, the fact shall be shown in the report of sale made to

the court.

(e) Failure of Bidder to Comply. When any person shall bid off

property of an estate offered for sale at public auction, and

shall fail to comply with the terms of sale, such property shall

be readvertised and sold without any further order; and the

person so defaulting shall be liable to pay to the representative

of the estate, for its benefit, ten per cent of the amount of his

bid, and also any deficiency in price on the second sale, such

amounts to be recovered by such representative by suit in any

court having jurisdiction of the amount claimed, in the county in

which the sale was made.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 350. PRIVATE SALES OF REAL ESTATE. All private sales of

real estate shall be made in such manner as the court directs in

its order of sale, and no further advertising, notice, or

citation concerning such sale shall be required, unless the court

shall direct otherwise.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 1755, ch. 713, Sec. 29, eff. Aug. 27,

1979.

Text of article effective until January 01, 2014

Sec. 351. SALES OF EASEMENTS AND RIGHT OF WAYS. It shall be

lawful to sell and convey easements and rights of ways on, under,

and over the lands of an estate being administered under orders

of a court, regardless of whether the proceeds of such a sale are

required for payment of charges or claims against the estate, or

for other lawful purposes. The procedure for such sales shall be

the same as now or hereafter provided by law for sales of real

property of estates of decedents at private sale.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 62, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 352. REPRESENTATIVE PURCHASING PROPERTY OF THE ESTATE. (a)

Except as provided by Subsection (b), (c), or (d) of this

section, the personal representative of an estate shall not

become the purchaser, directly or indirectly, of any property of

the estate sold by him, or by any co-representative if one be

acting.

(b) A personal representative of an estate may purchase property

from the estate if the will, duly admitted to probate, appointing

the personal representative expressly authorizes the sale.

(c) A personal representative of a decedent may purchase property

from the estate of the decedent in compliance with the terms of a

written executory contract signed by the decedent, including a

contract for deed, earnest money contract, buy/sell agreement, or

stock purchase or redemption agreement.

(d) After issuing the notice required by this subsection, a

personal representative of an estate, including an independent

administrator, may purchase property from the estate on the

court's determination that the sale is in the best interest of

the estate. The personal representative shall give notice by

certified mail, return receipt requested, unless the court

requires another form of notice, to each distributee of a

deceased person's estate and to each creditor whose claim remains

unsettled after presenting a claim within six months of the

original grant of letters. The court may require additional

notice or it may allow for the waiver of the notice required for

a sale made under this subsection.

(e) If a purchase is made in violation of this section, any

person interested in the estate may file a written complaint with

the court in which the proceedings are pending, and upon service

of citation upon the representative, after hearing and proof,

such sale shall be by the court declared void, and shall be set

aside by the court and the property ordered to be reconveyed to

the estate. All costs of the sale, protest, and suit, if found

necessary, shall be adjudged against the representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1985, 69th Leg., ch. 709, Sec. 1, eff. Aug. 26, 1985;

Acts 1989, 71st Leg., ch. 651, Sec. 1, eff. June 14, 1989; Acts

1991, 72nd Leg., ch. 895, Sec. 14, eff. Sept. 1, 1991; Acts 1993,

73rd Leg., ch. 957, Sec. 63, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 353. REPORTS OF SALE. All sales of real property of an

estate shall be reported to the court ordering the same within

thirty days after the sales are made. Reports shall be in

writing, sworn to, and filed with the clerk, and noted on the

probate docket. They shall show:

(a) The date of the order of sale.

(b) The property sold, describing it.

(c) The time and place of sale.

(d) The name of the purchaser.

(e) The amount for which each parcel of property or interest

therein was sold.

(f) The terms of the sale, and whether made at public auction or

privately.

(g) Whether the purchaser is ready to comply with the order of

sale.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 354. BOND ON SALE OF REAL ESTATE. If the personal

representative of the estate is not required by this Code to

furnish a general bond, the sale may be confirmed by the court if

found to be satisfactory and in accordance with law. Otherwise,

before any sale of real estate is confirmed, the court shall

determine whether the general bond of said representative is

sufficient to protect the estate after the proceeds of the sale

are received. If the court so finds, the sale may be confirmed.

If the general bond be found insufficient, the sale shall not be

confirmed until and unless the general bond be increased to the

amount required by the court, or an additional bond given, and

approved by the court. The increase, or the additional bond,

shall be equal to the amount for which such real estate is sold,

plus, in either instance, such additional sum as the court shall

find necessary and fix for the protection of the estate;

provided, that where the real estate sold is encumbered by a lien

to secure a claim against the estate and is sold to the owner or

holder of such secured claim and is in full payment, liquidation,

and satisfaction thereof, no increased general bond or additional

bond shall be required except for the amount of cash, if any,

actually paid to the representative of the estate in excess of

the amount necessary to pay, liquidate, and satisfy such claim in

full.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 355. ACTION OF COURT ON REPORT OF SALE. After the

expiration of five days from the filing of a report of sale, the

court shall inquire into the manner in which the sale was made,

hear evidence in support of or against such report, and determine

the sufficiency or insufficiency of the representative's general

bond, if any has been required and given; and, if he is satisfied

that the sale was for a fair price, was properly made and in

conformity with law, and has approved any increased or additional

bond which may have been found necessary to protect the estate,

the court shall enter a decree confirming such sale, showing

conformity with the foregoing provisions of the Code, and

authorizing the conveyance of the property to be made by the

representative of the estate upon compliance by the purchaser

with the terms of the sale, detailing such terms. If the court is

not satisfied that the sale was for a fair price, was properly

made, and in conformity with law, an order shall be made setting

the same aside and ordering a new sale to be made, if necessary.

The action of the court in confirming or disapproving a report of

sale shall have the force and effect of a final judgment; and any

person interested in the estate or in the sale shall have the

right to have such decrees reviewed as in other final judgments

in probate proceedings.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1975, 64th Leg., p. 2197, ch. 701, Sec. 6, eff. June 21,

1975.

Text of article effective until January 01, 2014

Sec. 356. DEED CONVEYS TITLE TO REAL ESTATE. When real estate is

sold, the conveyance shall be by proper deed which shall refer to

and identify the decree of the court confirming the sale. Such

deed shall vest in the purchaser all right, title, and interest

of the estate to such property, and shall be prima facie evidence

that said sale has met all applicable requirements of the law.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 357. DELIVERY OF DEED, VENDOR'S AND DEED OF TRUST LIEN.

After a sale is confirmed by the court and the terms of sale have

been complied with by the purchaser, the representative of the

estate shall forthwith execute and deliver to the purchaser a

proper deed conveying the property. If the sale is made partly on

credit, the vendor's lien securing the purchase money note or

notes shall be expressly retained in said deed, and in no event

waived, and before actual delivery of said deed to purchaser, he

shall execute and deliver to the representative of the estate a

vendor's lien note or notes, with or without personal sureties as

the court shall have ordered, and also a deed of trust or

mortgage on the property as further security for the payment of

said note or notes. Upon completion of the transaction, the

personal representative shall promptly file or cause to be filed

and recorded in the appropriate records in the county where the

land is situated said deed of trust or mortgage.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 358. PENALTY FOR NEGLECT. Should the representative of an

estate neglect to comply with the preceding Section, or to file

the deed of trust securing such lien in the proper county, he and

the sureties on his bond shall, after complaint and citation, be

held liable for the use of the estate, for all damages resulting

from such neglect, which damages may be recovered in any court of

competent jurisdiction, and he may be removed by the court.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 6. HIRING AND RENTING

Text of article effective until January 01, 2014

Sec. 359. HIRING OR RENTING WITHOUT ORDER OF COURT. The personal

representative of an estate may, without order of court, rent any

of its real property or hire out any of its personal property,

either at public auction or privately, as may be deemed in the

best interest of the estate, for a period not to exceed one year.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 360. LIABILITY OF PERSONAL REPRESENTATIVE. If property of

the estate is hired or rented without an order of court, the

personal representative shall be required to account to the

estate for the reasonable value of the hire or rent of such

property, to be ascertained by the court upon satisfactory

evidence, upon sworn complaint of any person interested in the

estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 361. ORDER TO HIRE OR RENT. Representatives of estates, if

they prefer, may, and, if the proposed rental period exceeds one

year, shall, file a written application with the court setting

forth the property sought to be hired or rented. If the court

finds that it would be to the interest of the estate, he shall

grant the application and issue an order which shall describe the

property to be hired or rented, state whether such hiring or

renting shall be at public auction or privately, whether for cash

or on credit, and, if on credit, the extent of same and the

period for which the property may be rented. If to be hired or

rented at public auction, the court shall also prescribe whether

notice thereof shall be published or posted.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 362. PROCEDURE IN CASE OF NEGLECT TO RENT PROPERTY. Any

person interested in an estate may file his written and sworn

complaint in a court where such estate is pending, and cause the

personal representative of such estate to be cited to appear and

show cause why he did not hire or rent any property of the

estate, and the court, upon hearing such complaint, shall make

such order as seems for the best interest of the estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 363. WHEN PROPERTY IS HIRED OR RENTED ON CREDIT. When

property is hired or rented on credit, possession thereof shall

not be delivered until the hirer or renter has executed and

delivered to the representative of the estate a note with good

personal security for the amount of such hire or rent; and, if

any such property so hired or rented is delivered without

receiving such security, the representative and the sureties on

his bond shall be liable for the full amount of such hire or

rent; provided, that when the hire or rental is payable in

installments, in advance of the period of time to which they

relate, this Section shall not apply.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 364. PROPERTY HIRED OR RENTED TO BE RETURNED IN GOOD

CONDITION. All property hired or rented, with or without an

order of court, shall be returned to the possession of the estate

in as good condition, reasonable wear and tear excepted, as when

hired or rented, and it shall be the duty and responsibility of

the representative of the estate to see that this is done, to

report to the court any loss, damage or destruction of property

hired or rented, and to ask for authority to take such action as

is necessary; failing so to do, he and the sureties on his bond

shall be liable to the estate for any loss or damage suffered

through such fault.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 365. REPORT OF HIRING OR RENTING. (a) When any property of

the estate with an appraised value of Three Thousand Dollars or

more has been hired or rented, the representative shall, within

thirty days thereafter, file with the court a sworn and written

report, stating:

(1) The property involved and its appraised value.

(2) The date of hiring or renting, and whether at public auction

or privately.

(3) The name of the person or persons hiring or renting such

property.

(4) The amount of such hiring or rental.

(5) Whether the hiring or rental was for cash or on credit, and,

if on credit, the length of time, the terms, and the security

taken therefor.

(b) When the value of the property involved is less than Three

Thousand Dollars, the hiring or renting thereof may be reported

upon in the next annual or final account which shall be filed as

required by law.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 366. ACTION OF COURT ON REPORT. At any time after five days

from the time such report of hiring or renting is filed, it shall

be examined by the court and approved and confirmed by order of

the court if found just and reasonable; but, if disapproved, the

estate shall not be bound and the court may order another

offering of the property for hire or rent, in the same manner and

subject to the same rules heretofore provided. If the report has

been approved and it later appears that, by reason of any fault

of the representative of the estate, the property has not been

hired or rented for its reasonable value, the court shall cause

the representative of the estate and his sureties to appear and

show cause why the reasonable value of hire or rent of such

property shall not be adjudged against him.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 7. MINERAL LEASES, POOLING OR UNITIZATION AGREEMENTS, AND

OTHER MATTERS RELATING TO MINERAL PROPERTIES

Text of article effective until January 01, 2014

Sec. 367. MINERAL LEASES AFTER PUBLIC NOTICE. (a) Certain Words

and Terms Defined. As used throughout in this Part of this

Chapter, the words "land" or "interest in land" include minerals

or any interest in any of such minerals in place. The word

"property" includes land, minerals in place, whether solid,

liquid or gaseous, as well as an interest of any kind in such

property, including royalty, owned by the estate. "Mineral

development" includes exploration, by geophysical or by any other

means, drilling, mining, developing, and operating, and producing

and saving oil, other liquid hydrocarbons, gas (including all

liquid hydrocarbons in the gaseous phase in the reservoir),

gaseous elements, sulphur, metals, and all other minerals, solid

or otherwise.

(b) Mineral Leases, With or Without Pooling or Unitization.

Personal representatives of the estates of decedents, appointed

and qualified under the laws of this State, and acting solely

under orders of court, may be authorized by the court in which

the probate proceedings on such estates are pending to make,

execute, and deliver leases, with or without unitization clauses

or pooling provisions, providing for the exploration for, and

development and production of, oil, other liquid hydrocarbons,

gas (including all liquid hydrocarbons in the gaseous phase),

metals, and other solid minerals, and other minerals, or any of

such minerals in place, belonging to such estates.

(c) Rules Concerning Applications, Orders, Notices, and Other

Essential Matters. All such leases, with or without pooling

provisions or unitization clauses, shall be made and entered into

pursuant to and in conformity with the following rules:

1. Contents of Application. The representative of the estate

shall file with the county clerk of the county where the probate

proceeding is pending his written application, addressed to the

court or the judge of such court, asking for authority to lease

property of the estate for mineral exploration and development,

with or without pooling provisions or unitization clauses. The

application shall (a) describe the property fully enough by

reference to the amount of acreage, the survey name or number, or

abstract number, or other description adequately identifying the

property and its location in the county in which situated; (b)

specify the interest thought to be owned by the estate, if less

than the whole, but asking for authority to include all interest

owned by the estate, if that be the intention; and (c) set out

the reasons why such particular property of the estate should be

leased. Neither the name of any proposed lessee, nor the terms,

provisions, or form of any desired lease, need be set out or

suggested in any such application for authority to lease for

mineral development.

2. Order Designating Time and Place for Hearing Application.

(a) Duties of Clerk and Judge. When an application to lease, as

above prescribed, is filed, the county clerk shall immediately

call the filing of such application to the attention of the

court, and the judge shall promptly make and enter a brief order

designating the time and place for the hearing of such

application.

(b) Continuance of Hearing. If the hearing is not had at the time

originally designated by the court or by timely order or orders

of continuance duly entered, then, in such event, the hearing

shall be automatically continued, without further notice, to the

same hour or time the following day (except Sundays and holidays

on which the county courthouse is officially closed to business)

and from day to day until the application is finally acted upon

and disposed of by order of the court. No notice of such

automatic continuance shall be required.

3. Notice of Application to Lease, Service of Notice, and Proof

of Service.

(a) Notice and Its Contents. The personal representative, and not

the county clerk, shall give notice in writing of the time

designated by the judge for the hearing on the application to

lease. The notice shall be directed to all persons interested in

the estate. It shall state the date on which the application was

filed, describe briefly the property sought to be leased,

specifying the fractional interest sought to be leased if less

than the entire interest in the tract or tracts identified, state

the time and place designated by the judge for the hearing, and

be dated.

(b) Service of Notice. The personal representative shall give at

least ten days notice, exclusive of the date of notice and of the

date set for hearing, by publication in one issue of a newspaper

of general circulation in the county in which the proceeding is

pending, or, if there be no such newspaper, then by posting by

the personal representative or at his instance. The date of

notice when published shall be the date the newspaper bears.

4. Preceding Requirements Mandatory. In the absence of: (a) a

written order originally designating a time and place for

hearing; (b) a notice issued by the personal representative of

the estate in compliance with such order; and (c) proof of

publication or posting of such notice as required, any order of

the judge or court authorizing any acts to be performed pursuant

to said application shall be null and void.

5. Hearing on Application to Lease and Order Thereon. At the time

and place designated for the hearing, or at any time to which it

shall have been continued as hereinabove provided, the judge

shall hear such application, requiring proof as to the necessity

or advisability of leasing for mineral development the property

described in the application and in the notice; and, if he is

satisfied that the application is in due form, that notice has

been duly given in the manner and for the time required by law,

that the proof of necessity or advisability of leasing is

sufficient, and that the application should be granted, then an

order shall be entered so finding, and authorizing the making of

one or more leases, with or without pooling provisions or

unitization clauses (with or without cash consideration if deemed

by the court to be in the best interest of the estate) affecting

and covering the property, or portions thereof, described in the

application. Said order authorizing leasing shall also set out

the following mandatory contents:

(a) The name of the lessee.

(b) The actual cash consideration, if any, to be paid by the

lessee.

(c) Finding that the personal representative is exempted by law

from giving bond, if that be a fact and if not a fact, then a

finding as to whether or not the representative's general bond on

file is sufficient to protect the personal property on hand,

inclusive of any cash bonus to be paid, if any. If the court

finds the general bond insufficient to meet these requirements,

the order shall show the amount of increased or additional bond

required to cover the deficiency.

(d) A complete exhibit copy, either written or printed, of each

lease thus authorized to be made, shall either be set out in the

order or attached thereto and incorporated by reference in said

order and made a part thereof. It shall show the name of the

lessee, the date of the lease, an adequate description of the

property being leased, the delay rental, if any, to be paid to

defer commencement of operations, and all other terms and

provisions authorized; provided, that if no date of the lease

appears in such exhibit copy, or in the court's order, then the

date of the court's order shall be considered for all purposes as

the date of the authorized lease, and if the name and address of

the depository bank, or either of them, for receiving rental is

not shown in said exhibit copy, the same may be inserted or

caused to be inserted in the lease by the estate's personal

representative at the time of its execution, or at any other time

agreeable to the lessee, his successors, or assigns.

6. Conditional Validity of Lease; Bond; Time of Execution;

Confirmation Not Needed. If, upon the hearing of an application

for authority to lease, the court shall grant the same as above

provided, the personal representative of the estate shall then be

fully authorized to make, within thirty days after date of the

judge's order, but not afterwards unless an extension be granted

by the court upon sworn application showing good cause, the lease

or leases as evidenced by the aforesaid true exhibit copies, in

accordance with said order; but, unless the personal

representative is not required to give a general bond, no such

lease, for which a cash consideration is required, though

ordered, executed, and delivered, shall be valid unless the order

authorizing same actually makes findings with respect to the

general bond, and, in case such bond has been found insufficient,

then unless and until the bond has been increased, or an

additional bond given, as required by the court's order, with the

sureties required by law, has been approved by the judge and

filed with the clerk of the court in which the proceedings are

pending. In the event two or more leases on different lands are

authorized by the same order, the general bond shall be

increased, or additional bonds given, to cover all. It shall not

be necessary for the judge to make any order confirming such

leases.

7. Term of Lease Binding. Every such lease, when executed and

delivered in compliance with the rules hereinabove set out, shall

be valid and binding upon the property or interest therein owned

by the estate and covered by the lease for the full duration of

the term as provided therein, subject only to its terms and

conditions, even though the primary term shall extend beyond the

date when the estate shall have been closed in accordance with

law; provided the authorized primary term shall not exceed five

(5) years, subject to terms and provisions of the lease extending

it beyond the primary term by paying production, by bona fide

drilling or reworking operations, whether in or on the same or

additional well or wells, with no cessation of operations of more

than sixty (60) consecutive days before production has been

restored or obtained, or by the provisions of the lease relating

to a shut-in gas well.

7(a). Validation of Certain Provisions of Leases Heretofore

Executed by Personal Representatives. As to any valid mineral

lease heretofore executed and delivered in compliance with the

provisions of the Texas Probate Code and which lease is still in

force, any provisions of any such lease continuing such lease in

force after its five (5) year primary term by a shut-in gas well

are hereby validated; provided, however, that this provision

shall not be applicable to any such provision of any such lease

which is involved in any lawsuit pending in this state on the

effective date of this Act wherein the validity of such provision

is an issue.

8. Amendment of Leases. Any oil, gas, and mineral lease

heretofore or hereafter executed by a personal representative

pursuant to the Texas Probate Code may be amended by an

instrument which provides that a shut-in gas well on the land

covered by the lease or on land pooled with all or some part

thereof shall continue such lease in force after its five (5)

year primary term. Such instrument shall be executed by the

personal representative, with the approval of the court, and on

such terms and conditions as may be prescribed therein.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 10(a), eff. Aug. 22,

1957; Acts 1961, 57th Leg., p. 441, ch. 215, Sec. 1 to 3, eff.

May 25, 1961; Acts 1993, 73rd Leg., ch. 957, Sec. 64, eff. Sept.

1, 1993.

Text of article effective until January 01, 2014

Sec. 368. MINERAL LEASES AT PRIVATE SALE. (a) Authorization

Allowed. Notwithstanding the preceding mandatory requirements for

setting a time and place for hearing of an application to lease

and the issuance, service, and return of notice, the court may

authorize the making of oil, gas, and mineral leases at private

sale (without public notice or advertising) if, in the opinion of

the court, sufficient facts are set out in the application

required above to show that it would be more advantageous to the

estate that a lease be made privately and without compliance with

said mandatory requirements mentioned above. Leases so authorized

may include pooling provisions or unitization clauses as in other

cases.

(b) Action of the Court When Public Advertising Not Required. At

any time after the expiration of five (5) days and prior to the

expiration of ten (10) days from the date of filing and without

an order setting time and place of hearing, the court shall hear

the application to lease at private sale and shall inquire into

the manner in which the proposed lease has been or will be made,

and shall hear evidence for or against the same; and, if

satisfied that the lease has been or will be made for a fair and

sufficient consideration and on fair terms, and has been or will

be properly made in conformity with law, the court shall enter an

order authorizing the execution of such lease without the

necessity of advertising, notice, or citation, said order

complying in all other respects with the requirements essential

to the validity of mineral leases as hereinabove set out, as if

advertising or notice were required. No order confirming a lease

or leases made at private sale need be issued, but no such lease

shall be valid until the increased or additional bond required by

the court, if any, has been approved by the court and filed with

the clerk of the court.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 10(b).

Text of section as repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10 effective January 1, 2014

Sec. 369. POOLING OR UNITIZATION OF ROYALTY OR MINERALS. (a)

Authorization for Pooling or Unitization. When an existing lease

or leases on property owned by the estate does not adequately

provide for pooling or unitization, the court may authorize the

commitment of royalty or mineral interests in oil, liquid

hydrocarbons, gas (including all liquid hydrocarbons in the

gaseous phase in the reservoir), gaseous elements, and other

minerals, or any one or more of them, owned by the estate being

administered, to agreements that provide for the operation of

areas as a pool or unit for the exploration, development, and

production of all such minerals, where the court finds that the

pool or unit to which the agreement relates will be operated in

such a manner as to protect correlative rights, or to prevent the

physical or economic waste of oil, liquid hydrocarbons, gas

(including all liquid hydrocarbons in the gaseous phase in the

reservoir), gaseous elements, or other mineral subject thereto,

and that it is to the best interest of the estate to execute the

agreement. Any agreement so authorized to be executed may, among

other things, provide:

(1) That operations incident to the drilling of or production

from a well upon any portion of a pool or unit shall be deemed

for all purposes to be the conduct of operations upon or

production from each separately owned tract in the pool or unit.

(2) That any lease covering any part of the area committed to a

pool or unit shall continue in force in its entirety as long as

oil, gas, or other mineral subject to the agreement is produced

in paying quantities from any part of the pooled or unitized

area, or as long as operations are conducted as provided in the

lease on any part of the pooled or unitized area, or as long as

there is a shut-in gas well on any part of the pooled or unitized

area, if the presence of such shut-in gas well is a ground for

continuation of the lease by the terms of said lease.

(3) That the production allocated by the agreement to each tract

included in a pool or unit shall, when produced, be deemed for

all purposes to have been produced from such tract by a well

drilled thereon.

(4) That the royalties provided for on production from any tract

or portion thereof within the pool or unit shall be paid only on

that portion of the production allocated to the tract in

accordance with the agreement.

(5) That the dry gas, before or after extraction of hydrocarbons,

may be returned to a formation underlying any lands or leases

committed to the agreement, and that no royalties are required to

be paid on the gas so returned.

(6) That gas obtained from other sources or other lands may be

injected into a formation underlying any lands or leases

committed to the agreement, and that no royalties are required to

be paid on the gas so injected when same is produced from the

unit.

Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch.

602, Sec. 9

(b) Procedure for Authorizing Pooling or Unitization. Pooling or

unitization, when not adequately provided for by an existing

lease or leases on property owned by the estate, may be

authorized by the court in which the proceedings are pending

pursuant to and in conformity with the following rules:

(1) Contents of Application. The personal representative of the

estate shall file with the county clerk of the county where the

probate proceeding is pending his written application for

authority (a) to enter into pooling or unitization agreements

supplementing, amending, or otherwise relating to, any existing

lease or leases covering property owned by the estate, or (b) to

commit royalties or other interest in minerals, whether subject

to lease or not, to a pooling or unitization agreement. The

application shall also (c) describe the property sufficiently, as

required in original application to lease, (d) describe briefly

the lease or leases, if any, to which the interest of the estate

is subject, and (e) set out the reasons why the proposed

agreement concerning such property should be made. A true copy

of the proposed agreement shall be attached to the application

and by reference made a part thereof, but the agreement shall not

be recorded in the judge's probate docket. The clerk shall

immediately, after such application is filed, call it to the

attention of the judge.

(2) Notice Not Necessary. No notice of the filing of such

application by advertising, citation, or otherwise, is required.

(3) Hearing of Application. A hearing on such application may be

held by the judge at any time agreeable to the parties to the

proposed agreement, and the judge shall hear proof and satisfy

himself as to whether or not it is to the best interest of the

estate that the proposed agreement be authorized. The hearing

may be continued from day to day and from time to time as the

court finds to be necessary.

(4) Action of Court and Contents of Order. If the court finds

that the pool or unit to which the agreement relates will be

operated in such a manner as to protect correlative rights or to

prevent the physical or economic waste of oil, liquid

hydrocarbons, gas (including all liquid hydrocarbons in the

gaseous phase in the reservoir), gaseous elements, or other

mineral subject thereto; that it is to the best interest of the

estate that the agreement be executed; and that the agreement

conforms substantially with the permissible provisions of

Subsection (a) hereof, he shall enter an order setting out the

findings made by him, authorizing execution of the agreement

(with or without payment of cash consideration according to the

agreement). If cash consideration is to be paid for the

agreement, findings as to the necessity of increased or

additional bond, as in making of leases upon payment of the cash

bonus therefor, shall also be made, and no such agreement shall

be valid until the increased or additional bond required by the

court, if any, has been approved by the judge and filed with the

clerk. The date of the court's order shall be the effective date

of the agreement, if not stipulated in such agreement.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1961, 57th Leg., p. 441, ch. 215, Sec. 4, eff. May 25,

1961.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

602, Sec. 9, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Text of article effective until January 01, 2014

Sec. 370. SPECIAL ANCILLARY INSTRUMENTS WHICH MAY BE EXECUTED

WITHOUT COURT ORDER. As to any valid mineral lease or pooling or

unitization agreement, executed on behalf of the estate prior to

the effective date of this Code, or pursuant to its provisions,

or by a former owner of land, minerals, or royalty affected

thereby, the personal representative of the estate which is being

administered may, without further order of the court, and without

consideration, execute division orders, transfer orders,

instruments of correction, instruments designating depository

banks for the reception of delay rentals or shut-in gas well

royalty to accrue or become payable under the terms of any such

lease or leases, and similar instruments pertaining to any such

lease or agreement and the property covered thereby.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 10(c).

Text of article effective until January 01, 2014

Sec. 371. PROCEDURE WHEN REPRESENTATIVE OF ESTATE NEGLECTS TO

APPLY FOR AUTHORITY. When the personal representative of an

estate shall neglect to apply for authority to subject property

of the estate to a lease for mineral development, pooling or

unitization, or to commit royalty or other interest in minerals

to pooling or unitization, any person interested in the estate

may, upon written application filed with the county clerk, cause

such representative to be cited to show cause why it is not for

the best interest of the estate for such a lease to be made, or

such an agreement entered into. The clerk shall immediately call

the filing of such application to the attention of the judge of

the court in which the probate proceedings are pending, and the

judge shall set a time and place for a hearing on the

application, and the representative of the estate shall be cited

to appear and show cause why the execution of such lease or

agreement should not be ordered. Upon hearing, if satisfied from

the proof that it would be in the best interest of the estate,

the court shall enter an order requiring the personal

representative forthwith to file his application to subject such

property of the estate to a lease for mineral development, with

or without pooling or unitization provisions, or to commit

royalty or other minerals to unitization, as the case may be. The

procedure prescribed with respect to original application to

lease, or with respect to original application for authority to

commit royalty or minerals to pooling or unitization, whichever

is appropriate, shall then be followed.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 372. VALIDATION OF CERTAIN LEASES AND POOLING OR UNITIZATION

AGREEMENTS BASED ON PREVIOUS STATUTES. All presently existing

leases on the oil, gas, or other minerals, or one or more of

them, belonging to the estates of decedents, and all agreements

with respect to pooling, or unitization thereof, or one or more

of them, or any interest therein, with like properties of others

having been authorized by the court having venue, and executed

and delivered by the executors, administrators, or other

fiduciaries of their estates in substantial conformity to the

rules set forth in statutes heretofore existing, providing for

only seven days notice in some instances, and also for a brief

order designating a time and place for hearing, are hereby

validated in so far as said period of notice is concerned, and in

so far as the absence of any order setting a time and place for

hearing is concerned; provided, this shall not apply to any lease

or pooling or unitization agreement involved in any suit pending

on the effective date of this Code wherein either the length of

time of said notice or the absence of such order is in issue.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 65, eff. Sept. 1, 1993.

PART 8. PARTITION AND DISTRIBUTION OF ESTATES OF DECEDENTS

Text of article effective until January 01, 2014

Sec. 373. APPLICATION FOR PARTITION AND DISTRIBUTION OF ESTATES

OF DECEDENTS. (a) Who May Apply. At any time after the

expiration of twelve months after the original grant of letters

testamentary or of administration, the executor or administrator,

or the heirs, devisees, or legatees of the estate, or any of

them, may, by written application filed in the court in which the

estate is pending, request the partition and distribution of the

estate.

(b) Contents of Application. The application shall state:

(1) The name of the person whose estate is sought to be

partitioned and distributed; and

(2) The names and residences of all persons entitled to shares of

such estate, and whether adults or minors; and, if these facts be

unknown to the applicant, it shall be so stated in the

application; and

(3) The reasons why partition and distribution should be had.

(c) Partial Distribution. At any time after the original grant of

letters testamentary or of administration, and the filing and

approval of the inventory, the executor or administrator, or the

heirs, devisees, or legatees of the estate, or any of them, may,

by written application filed in the court in which the estate is

pending, request a distribution of any portion of the estate. All

interested parties shall be personally cited, as in other

distributions, including known creditors. The court may upon

proper citation and hearing distribute any portion of the estate

it deems advisable. In the event a distribution is to be made to

one or more heirs or devisees, and not to all the heirs or

devisees, the court shall require a refunding bond in an amount

to be determined by the court to be filed with the court and,

upon its approval, the court shall order the distribution of that

portion of the estate, unless such requirement is waived in

writing and the waiver is filed with the court by all interested

parties. This section shall apply to corpus as well as income,

notwithstanding any other provisions of this Code.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1973, 63rd Leg., p. 408, ch. 182, Sec. 2, eff. May 25,

1973.

Text of article effective until January 01, 2014

Sec. 374. CITATION OF INTERESTED PERSONS. Upon the filing of

such application, the clerk shall issue a citation which shall

state the name of the person whose estate is sought to be

partitioned and distributed, and the date upon which the court

will hear the application, and the citation shall require all

persons interested in the estate to appear and show cause why

such partition and distribution should not be made. Such citation

shall be personally served upon each person residing in the state

entitled to a share of the estate whose address is known; and, if

there be any such persons whose identities or addresses are not

known, or who are not residents of this state, or are residents

of but absent from this state, such citation shall be served by

publication.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 375. CITATION OF EXECUTOR OR ADMINISTRATOR. When

application for partition and distribution is made by any person

other than the executor or administrator, such representative

shall also be cited to appear and answer the application and to

file in court a verified exhibit and account of the condition of

the estate, as in the case of final settlements.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 377. FACTS TO BE ASCERTAINED UPON HEARING. At the hearing

upon the application for partition and distribution, the court

shall ascertain:

(a) The residue of the estate subject to partition and

distribution, which shall be ascertained by deducting from the

entire assets of such estate remaining on hand the amount of all

debts and expenses of every kind which have been approved or

established by judgment, but not paid, or which may yet be

established by judgment, and also the probable future expenses of

administration.

(b) The persons who are by law entitled to partition and

distribution, and their respective shares.

(c) Whether advancements have been made to any of the persons so

entitled and their nature and value. If advancements have been

made, the court shall require the same to be placed in hotchpotch

as required by the law governing intestate succession.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 378. DECREE OF THE COURT. If the court is of the opinion

that the estate should be partitioned and distributed, it shall

enter a decree which shall state:

(a) The name and address, if known, of each person entitled to a

share of the estate, specifying those who are known to be minors,

and the names of their guardians, or the guardians ad litem, and

the name of the attorney appointed to represent those who are

unknown or who are not residents of the state.

(b) The proportional part of the estate to which each is

entitled.

(c) A full description of all the estate to be distributed.

(d) That the executor or administrator retain in his hands for

the payment of all debts, taxes, and expenses of administration a

sufficient amount of money or property for that purpose,

specifying the amount of money or the property to be so retained.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 378A. SATISFACTION OF PECUNIARY BEQUESTS. (a) Unless the

governing instrument provides otherwise, if an executor,

administrator, or trustee is authorized under the will or trust

of a decedent to satisfy a pecuniary bequest, devise, or transfer

in trust in kind with assets at their value for federal estate

tax purposes, in satisfaction of a gift intended to qualify, or

that otherwise would qualify, for a United States estate tax

marital deduction, the executor, administrator, or trustee, in

order to implement the bequest, devise, or transfer, shall

distribute assets, including cash, fairly representative of

appreciation or depreciation in the value of all property

available for distribution in satisfaction of the pecuniary

bequest, devise, or transfer.

(b) Unless the governing instrument provides otherwise, if a will

or trust contains a pecuniary bequest, devise, or transfer that

may be satisfied by distributing assets in kind and if the

executor, administrator, or trustee determines to fund the

bequest, devise, or transfer by distributing assets in kind, the

property shall, for the purpose of funding the bequest, devise,

or transfer, be valued at its value on the date or dates of

distribution.

Added by Acts 1987, 70th Leg., ch. 1110, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1991, 72nd Leg., ch. 895, Sec. 15, eff.

Sept. 1, 1991.

Text of article effective until January 01, 2014

Sec. 378B. ALLOCATION OF INCOME AND EXPENSES DURING

ADMINISTRATION OF DECEDENT'S ESTATE. (a) Except as provided by

Subsection (b) of this section and unless the will provides

otherwise, all expenses incurred in connection with the

settlement of a decedent's estate, including debts, funeral

expenses, estate taxes, penalties relating to estate taxes, and

family allowances, shall be charged against the principal of the

estate. Fees and expenses of an attorney, accountant, or other

professional advisor, commissions and expenses of a personal

representative, court costs, and all other similar fees or

expenses relating to the administration of the estate and

interest relating to estate taxes shall be allocated between the

income and principal of the estate as the executor determines in

its discretion to be just and equitable.

(b) Unless the will provides otherwise, income from the assets of

a decedent's estate that accrues after the death of the testator

and before distribution, including income from property used to

discharge liabilities, shall be determined according to the rules

applicable to a trustee under the Texas Trust Code (Subtitle B,

Title 9, Property Code) and distributed as provided by Chapter

116, Property Code, and Subsections (c) and (d) of this section.

(c) The income from the property bequeathed or devised to a

specific devisee shall be distributed to the devisee after

reduction for property taxes, ordinary repairs, insurance

premiums, interest accrued after the death of the testator, other

expenses of management and operation of the property, and other

taxes, including the taxes imposed on the income that accrues

during the period of administration and that is payable to the

devisee.

(d) The balance of the net income shall be distributed to all

other devisees after reduction for the balance of property taxes,

ordinary repairs, insurance premiums, interest accrued, other

expenses of management and operation of all property from which

the estate is entitled to income, and taxes imposed on income

that accrues during the period of administration and that is

payable or allocable to the devisees, in proportion to the

devisees' respective interests in the undistributed assets of the

estate.

(g) Income received by a trustee under this section shall be

treated as income of the trust as provided by Section 116.101,

Property Code.

(h) In this section, "undistributed assets" includes funds used

to pay debts, administration expenses, and federal and state

estate, inheritance, succession, and generation-skipping transfer

taxes until the date of payment of the debts, expenses, and

taxes. Except as required by Sections 2055 and 2056 of the

Internal Revenue Code of 1986 (26 U.S.C. Secs. 2055 and 2056),

and its subsequent amendments, the frequency and method of

determining the beneficiaries' respective interests in the

undistributed assets of the estate shall be in the executor's

sole and absolute discretion. The executor may consider all

relevant factors, including administrative convenience and

expense and the interests of the various beneficiaries of the

estate in order to reach a fair and equitable result among

beneficiaries.

(i) Chapter 116, Property Code, prevails to the extent of any

conflict between this section and Chapter 116, Property Code.

Added by Acts 1993, 73rd Leg., ch. 846, Sec. 24, eff. Sept. 1,

1993.

Subsecs. (a), (b), (d) and (g) amended by Acts 2003, 78th Leg.,

ch. 659, Sec. 3, eff. Jan. 1, 2004; Subsecs. (e), (f), repealed

by Acts 2003, ch. 659, Sec. 4, eff. Jan. 1, 2004; Subsec. (f)

amended by Acts 2003, 78th Leg., ch. 1060, Sec. 15, eff. Sept. 1,

2003; Subsec. (i) added by Acts 2003, 78th Leg., ch. 659, Sec. 3,

eff. Jan. 1, 2004.

Text of article effective until January 01, 2014

Sec. 379. PARTITION WHEN ESTATE CONSISTS OF MONEY OR DEBTS ONLY.

If the estate to be distributed shall consist only of money or

debts due the estate, or both, the court shall fix the amount to

which each distributee is entitled, and shall order the payment

and delivery thereof by the executor or administrator.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 380. PARTITION AND DISTRIBUTION WHEN PROPERTY IS CAPABLE OF

DIVISION. (a) Appointment of Commissioners. If the estate does

not consist entirely of money or debts due the estate, or both,

the court shall appoint three or more discreet and disinterested

persons as commissioners, to make a partition and distribution of

the estate, unless the court has already determined that the

estate is incapable of partition.

(b) Writ of Partition and Service Thereof. When commissioners are

appointed, the clerk shall issue a writ of partition directed to

the commissioners appointed, commanding them to proceed forthwith

to make partition and distribution in accordance with the decree

of the court, a copy of which decree shall accompany the writ,

and also command them to make due return of said writ, with their

proceedings under it, on a date named in the writ. Such writ

shall be served by delivering the same and the accompanying copy

of the decree of partition to any one of the commissioners

appointed, and by notifying the other commissioners, verbally or

otherwise, of their appointment, and such service may be made by

any person.

(c) Partition by Commissioners. The commissioners shall make a

fair, just, and impartial partition and distribution of the

estate in the following order:

(1) Of the land or other property, by allotting to each

distributee a share in each parcel or shares in one or more

parcels, or one or more parcels separately, either with or

without the addition of a share or shares of other parcels, as

shall be most for the interest of the distributees; provided, the

real estate is capable of being divided without manifest injury

to all or any of the distributees.

(2) If the real estate is not capable of a fair, just and equal

division in kind, but may be made so by allotting to one or more

of the distributees a proportion of the money or other personal

property to supply the deficiency or deficiencies, the

commissioners shall have power to make, as nearly as may be, an

equal division of the real estate and supply the deficiency of

any share or shares from the money or other property.

(3) The commissioners shall proceed to make a like division in

kind, as nearly as may be, of the money and other personal

property, and shall determine by lot, among equal shares, to whom

each particular share shall belong.

(d) Report of Commissioners. The commissioners, having divided

the whole or any part of the estate, shall make to the court a

written sworn report containing a statement of the property

divided by them, and also a particular description of the

property allotted to each distributee, and its value. If it be

real estate that has been divided, the report shall contain a

general plat of said land with the division lines plainly set

down and with the number of acres in each share. The report of a

majority of the commissioners shall be sufficient.

(e) Action of the Court. Upon the return of such report, the

court shall examine the same carefully and hear all exceptions

and objections thereto, and evidence in favor of or against the

same, and if it be informal, shall cause said informality to be

corrected. If such division shall appear to have been fairly made

according to law, and no valid exceptions are taken to it, the

court shall approve it, and shall enter a decree vesting title in

the distributees of their respective shares or portions of the

property as set apart to them by the commissioners; otherwise,

the court may set aside said report and division and order a new

partition to be made.

(f) Delivery of Property. When the report of commissioners to

make partition has been approved and ordered to be recorded, the

court shall order the executor or administrator to deliver to the

distributees their respective shares of the estate on demand,

including all the title deeds and papers belonging to the same.

(g) Fees of Commissioners. Commissioners thus appointed who

actually serve in partitioning and distributing an estate shall

be entitled to receive Five Dollars each for every day that they

are necessarily engaged in the performance of their duties as

such commissioners, to be taxed and paid as other costs in cases

of partition.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 381. PARTITION AND DISTRIBUTION WHEN PROPERTY OF AN ESTATE

IS INCAPABLE OF DIVISION. (a) Finding by the Court. When, in the

opinion of the court, the whole or any portion of an estate is

not capable of a fair and equal partition and distribution, the

court shall make a special finding in writing, specifying therein

the property incapable of division.

(b) Order of Sale. When the court has found that the whole or any

portion of the estate is not capable of fair and equal division,

it shall order a sale of all property which it has found not to

be capable of such division. Such sale shall be made by the

executor or administrator in the same manner as when sales of

real estate are made for the purpose of satisfying debts of the

estate, and the proceeds of such sale, when collected, shall be

distributed by the court among those entitled thereto.

(c) Purchase by Distributee. At such sale, if any distributee

shall buy any of the property, he shall be required to pay or

secure only such amount of his bid as exceeds the amount of his

share of such property.

(d) Applicability of Provisions Relating to Sales of Real Estate.

The provisions of this Code relative to reports of sales of real

estate, the giving of an increased general or additional bond

upon sales of real estate, and to the vesting of title to the

property sold by decree or by deed, shall also apply to sales

made under this Section.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 382. PROPERTY LOCATED IN ANOTHER COUNTY. (a) Court May

Order Sale. When any portion of the estate to be partitioned lies

in another county and cannot be fairly partitioned without

prejudice to the interests of the distributees, the commissioners

may report such facts to the court in writing; whereupon, if

satisfied that the said property cannot be fairly divided, or

that its sale would be more advantageous to the distributees, the

court may order a sale thereof, which sale shall be conducted in

the same manner as is provided in this Code for the sale of

property which is not capable of fair and equal division.

(b) Court May Appoint Additional Commissioners. If the court is

not satisfied that such property cannot be fairly and

advantageously divided, or that its sale would be more

advantageous to the distributees, three or more commissioners may

be appointed in each county where any portion of the estate so

reported is situated, and the same proceedings shall be had

thereon as are provided in this Code for commissioners to make

partition.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 384. DAMAGES FOR NEGLECT TO DELIVER PROPERTY. If any

executor or administrator shall neglect to deliver to the person

entitled thereto, when demanded, any portion of an estate ordered

to be delivered, such person may file with the clerk of the court

his written complaint alleging the fact of such neglect, the date

of his demand, and other relevant facts, whereupon the clerk

shall issue a citation to be served personally on such

representative, apprising him of the complaint and citing him to

appear before the court and answer, if he so desires, at the time

designated in the citation. If at the hearing the court finds

that the citation was duly served and returned and that the

representative is guilty of such neglect, the court shall enter

an order to that effect, and the representative shall be liable

to such complainant in damages at the rate of ten per cent of the

amount or appraised value of the share so withheld, per month,

for each and every month or fraction thereof that the share is

and/or has been so withheld after date of demand, which damages

may be recovered in any court of competent jurisdiction.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 385. PARTITION OF COMMUNITY PROPERTY. (a) Application for

Partition. When a husband or wife shall die leaving any community

property, the survivor may, at any time after letters

testamentary or of administration have been granted, and an

inventory, appraisement, and list of the claims of the estate

have been returned, make application in writing to the court

which granted such letters for a partition of such community

property.

(b) Bond and Action of the Court. The survivor shall execute and

deliver to the judge of said court a bond with a corporate surety

or two or more good and sufficient personal sureties, payable to

and approved by said judge, for an amount equal to the value of

the survivor's interest in such community property, conditioned

for the payment of one-half of all debts existing against such

community property, and the court shall proceed to make a

partition of said community property into two equal moieties, one

to be delivered to the survivor and the other to the executor or

administrator of the deceased. The provisions of this Code

respecting the partition and distribution of estates shall apply

to such partition so far as the same are applicable.

(c) Lien Upon Property Delivered. Whenever such partition is

made, a lien shall exist upon the property delivered to the

survivor to secure the payment of the aforementioned bond; and

any creditor of said community estate may sue in his own name on

such bond, and shall have judgment thereon for one-half of such

debt as he shall establish, and for the other one-half he shall

be entitled to be paid by the executor or administrator of the

deceased.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 386. PARTITION OF PROPERTY JOINTLY OWNED. Any person having

a joint interest with the estate of a decedent in any property,

real or personal, may make application to the court from which

letters testamentary or of administration have been granted

thereon to have a partition thereof, whereupon the court shall

make a partition of said property between the applicant and the

estate of the deceased; and all the provisions of this Code in

relation to the partition and distribution of estates shall

govern partition hereunder, so far as the same are applicable.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 387. EXPENSE OF PARTITION. Expense of partition of the

estate of a decedent shall be paid by the distributees pro rata.

The portion of the estate allotted each distributee shall be

liable for his portion of such expense, and, if not paid, the

court may order execution therefor in the names of the persons

entitled thereto.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 10A. STOCKS, BONDS AND OTHER PERSONAL PROPERTY

Text of article effective until January 01, 2014

Sec. 398A. HOLDING OF STOCKS, BONDS AND OTHER PERSONAL PROPERTY

BY PERSONAL REPRESENTATIVES IN NAME OF NOMINEE. Unless otherwise

provided by will, a personal representative may cause stocks,

bonds, and other personal property of an estate to be registered

and held in the name of a nominee without mention of the

fiduciary relationship in any instrument or record constituting

or evidencing title thereto. The personal representative is

liable for the acts of the nominee with respect to any property

so registered. The records of the personal representative shall

at all times show the ownership of the property. Any property so

registered shall be in the possession and control of the personal

representative at all times and be kept separate from his

individual property.

Added by Acts 1969, 61st Leg., p. 2106, ch. 719, Sec. 1, eff.

Sept. 1, 1969.

PART 11. ANNUAL ACCOUNTS AND OTHER EXHIBITS

Text of article effective until January 01, 2014

Sec. 399. ANNUAL ACCOUNTS REQUIRED. (a) Estates of Decedents

Being Administered Under Order of Court. The personal

representative of the estate of a decedent being administered

under order of court shall, upon the expiration of twelve (12)

months from the date of qualification and receipt of letters,

return to the court an exhibit in writing under oath setting

forth a list of all claims against the estate that were presented

to him within the period covered by the account, specifying which

have been allowed by him, which have been paid, which have been

rejected and the date when rejected, which have been sued upon,

and the condition of the suit, and show:

(1) All property that has come to his knowledge or into his

possession not previously listed or inventoried as property of

the estate.

(2) Any changes in the property of the estate which have not been

previously reported.

(3) A complete account of receipts and disbursements for the

period covered by the account, and the source and nature thereof,

with receipts of principal and income to be shown separately.

(4) A complete, accurate and detailed description of the property

being administered, the condition of the property and the use

being made thereof, and, if rented, the terms upon and the price

for which rented.

(5) The cash balance on hand and the name and location of the

depository wherein such balance is kept; also, any other sums of

cash in savings accounts or other form, deposited subject to

court order, and the name and location of the depository thereof.

(6) A detailed description of personal property of the estate,

which shall, with respect to bonds, notes, and other securities,

include the names of obligor and obligee, or if payable to

bearer, so state; the date of issue and maturity; the rate of

interest; serial or other identifying numbers; in what manner the

property is secured; and other data necessary to identify the

same fully, and how and where held for safekeeping.

(7) A statement that, during the period covered by the account,

all tax returns due have been filed and that all taxes due and

owing have been paid and a complete account of the amount of the

taxes, the date the taxes were paid, and the governmental entity

to which the taxes were paid.

(8) If any tax return due to be filed or any taxes due to be paid

are delinquent on the filing of the account, a description of the

delinquency and the reasons for the delinquency.

(9) A statement that the personal representative has paid all the

required bond premiums for the accounting period.

(b) Annual Reports Continue Until Estate Closed. Each personal

representative of the estate of a decedent shall continue to file

annual accounts conforming to the essential requirements of those

in Subsection (a) hereof as to changes in the assets of the

estate after rendition of the former account so that the true

condition of the estate, with respect to money, securities, and

other property, can be ascertained by the court or by any

interested person, by adding to the balances forward the

receipts, and then subtracting the disbursements. The description

of property sufficiently described in an inventory or previous

account may be by reference thereto.

(c) Supporting Vouchers, etc., Attached to Accounts. Annexed to

all annual accounts of representatives of estates shall be:

(1) Proper vouchers for each item of credit claimed in the

account, or, in the absence of such voucher, the item must be

supported by evidence satisfactory to the court. Original

vouchers may, upon application, be returned to the representative

after approval of his account.

(2) An official letter from the bank or other depository in which

the money on hand of the estate is deposited, showing the amounts

in general or special deposits.

(3) Proof of the existence and possession of securities owned by

the estate, or shown by the accounting, as well as other assets

held by a depository subject to orders of the court, the proof to

be by one of the following means:

a. By an official letter from the bank or other depository

wherein said securities or other assets are held for safekeeping;

provided, that if such depository is the representative, the

official letter shall be signed by a representative of such

depository other than the one verifying the account; or

b. By a certificate of an authorized representative of the

corporation which is surety on the representative's bonds; or

c. By a certificate of the clerk or a deputy clerk of a court of

record in this State; or

d. By an affidavit of any other reputable person designated by

the court upon request of the representative or other interested

party.

Such certificate or affidavit shall be to the effect that the

affiant has examined the assets exhibited to him by the

representative as assets of the estate in which the accounting is

made, and shall describe the assets by reference to the account

or otherwise sufficiently to identify those so exhibited, and

shall state the time when and the place where exhibited. In lieu

of using a certificate or an affidavit, the representative may

exhibit the securities to the judge of the court who shall

endorse on the account, or include in his order with respect

thereto, a statement that the securities shown therein as on hand

were in fact exhibited to him, and that those so exhibited were

the same as those shown in the account, or note any variance. If

the securities are exhibited at any place other than where

deposited for safekeeping, it shall be at the expense and risk of

the representative. The court may require additional evidence as

to the existence and custody of such securities and other

personal property as in his discretion he shall deem proper; and

may require the representative to exhibit them to the court, or

any person designated by him, at any time at the place where held

for safekeeping.

(d) Verification of Account. The representative filing the

account shall attach thereto his affidavit that it contains a

correct and complete statement of the matters to which it

relates.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 11(a); Acts 1993,

73rd Leg., ch. 712, Sec. 4, eff. Sept. 1, 1993; Acts 1993, 73rd

Leg., ch. 957, Sec. 66, eff. Sept. 1, 1993; Acts 1997, 75th Leg.,

ch. 1403, Sec. 1, eff. Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 400. PENALTY FOR FAILURE TO FILE ANNUAL ACCOUNT. Should any

personal representative of an estate fail to return any annual

account required by preceding sections of this Code, any person

interested in said estate may, upon written complaint, or the

court upon its own motion may, cause the personal representative

to be cited to return such account, and show cause for such

failure. If he fails to return said account after being so cited,

or fails to show good cause for his failure so to do, the court,

upon hearing, may revoke the letters of such representative, and

may fine him in a sum not to exceed Five Hundred Dollars ($500).

He and his sureties shall be liable for any fine imposed, and for

all damages and costs sustained by reason of such failure, which

may be recovered in any court of competent jurisdiction.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 11(b); Acts 1993,

73rd Leg., ch. 957, Sec. 67, eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 401. ACTION UPON ANNUAL ACCOUNTS. These rules shall govern

the handling of annual accounts:

(a) They shall be filed with the county clerk, and the filing

thereof shall be noted forthwith upon the judge's docket.

(b) Before being considered by the judge, the account shall

remain on file ten (10) days.

(c) At any time after the expiration of ten (10) days after the

filing of an annual account, the judge shall consider same, and

may continue the hearing thereon until fully advised as to all

items of said account.

(d) No accounting shall be approved unless possession of cash,

listed securities, or other assets held in safekeeping or on

deposit under order of court has been proved as required by law.

(e) If the account be found incorrect, it shall be corrected.

When corrected to the satisfaction of the court, it shall be

approved by an order of court, and the court shall then act with

respect to unpaid claims, as follows:

(1) Order for Payment of Claims in Full. If it shall appear from

the exhibit, or from other evidence, that the estate is wholly

solvent, and that the representative has in his hands sufficient

funds for the payment of every character of claims against the

estate, the court shall order immediate payment to be made of all

claims allowed and approved or established by judgment.

(2) Order for Pro Rata Payment of Claims. If it shall appear from

the account, or from other evidence, that the funds on hand are

not sufficient for the payment of all the said claims, or if the

estate is insolvent and the personal representative has any funds

on hand, the court shall order such funds to be applied to the

payment of all claims having a preference in the order of their

priority if they, or any of them, be still unpaid, and then to

the payment pro rata of the other claims allowed and approved or

established by final judgment, taking into consideration also the

claims that were presented within twelve (12) months after the

granting of administration, and those which are in suit or on

which suit may yet be instituted.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1957, 55th Leg., p. 53, ch. 31, Sec. 11(c).

Text of article effective until January 01, 2014

Sec. 402. ADDITIONAL EXHIBITS OF ESTATES OF DECEDENTS. At any

time after the expiration of fifteen months from the original

grant of letters to an executor or administrator, any interested

person may, by a complaint in writing filed in the court in which

the estate is pending, cause the representative to be cited to

appear and make an exhibit in writing under oath, setting forth

fully, in connection with previous exhibits, the condition of the

estate he represents; and, if it shall appear to the court by

said exhibit, or by other evidence, that said representative has

any funds of the estate in his hands subject to distribution

among the creditors of the estate, the court shall order the same

to be paid out to them according to the provisions of this Code;

or any representative may voluntarily present such exhibit to the

court; and, if he has any of the funds of the estate in his hands

subject to distribution among the creditors of the estate, a like

order shall be made.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 403. PENALTY FOR FAILURE TO FILE EXHIBITS OR REPORTS.

Should any personal representative fail to file any exhibit or

report required by this Code, any person interested in the estate

may, upon written complaint filed with the clerk of the court,

cause him to be cited to appear and show cause why he should not

file such exhibit or report; and, upon hearing, the court may

order him to file such exhibit or report, and, unless good cause

be shown for such failure, the court may revoke the letters of

such personal representative and may fine him in an amount not to

exceed One Thousand Dollars.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

PART 12. FINAL SETTLEMENT, ACCOUNTING, AND DISCHARGE

Text of article effective until January 01, 2014

Sec. 404. CLOSING ADMINISTRATION OF ESTATES OF DECEDENTS.

Administration of the estates of decedents shall be settled and

closed when all the debts known to exist against the estate of a

deceased person have been paid, or when they have been paid so

far as the assets in the hands of an administrator or executor of

such estate will permit, and when there is no further need for

administration.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1975, 64th Leg., p. 104, ch. 45, Sec. 2, eff. Sept. 1,

1975; Acts 1985, 69th Leg., ch. 881, Sec. 2, eff. Aug. 26, 1985;

Acts 1989, 71st Leg., ch. 1035, Sec. 15, eff. Sept. 1, 1989; Acts

1993, 73rd Leg., ch. 712, Sec. 5, eff. Sept. 1, 1993; Acts 1993,

73rd Leg., ch. 957, Sec. 68, eff. Sept. 1, 1993; Acts 1999, 76th

Leg., ch. 826, Sec. 1, eff. June 18, 1999.

Text of article effective until January 01, 2014

Sec. 405. ACCOUNT FOR FINAL SETTLEMENT OF ESTATES OF DECEDENTS.

When administration of the estate of a decedent is to be settled

and closed, the personal representative of such estate shall

present to the court his verified account for final settlement.

In such account it shall be sufficient to refer to the inventory

without describing each item of property in detail, and to refer

to and adopt any and all proceedings had in the administration

concerning sales, renting or hiring, leasing for mineral

development, or any other transactions on behalf of the estate

including exhibits, accounts, and vouchers previously filed and

approved, without restating the particular items thereof. Each

final account, however, shall be accompanied by proper vouchers

in support of each item thereof not already accounted for and

shall show, either by reference to any proceedings authorized

above or by statement of the facts:

1. The property belonging to the estate which has come into the

hands of the executor or administrator.

2. The disposition that has been made of such property.

3. The debts that have been paid.

4. The debts and expenses, if any, still owing by the estate.

5. The property of the estate, if any, still remaining on hand.

6. The persons entitled to receive such estate, their

relationship to the decedent, and their residence, if known, and

whether adults or minors, and, if minors, the names of their

guardians, if any.

7. All advancements or payments that have been made, if any, by

the executor or administrator from such estate to any such

person.

8. The tax returns due that have been filed and the taxes due and

owing that have been paid and a complete account of the amount of

taxes, the date the taxes were paid, and the governmental entity

to which the taxes were paid.

9. If any tax return due to be filed or any taxes due to be paid

are delinquent on the filing of the account, a description of the

delinquency and the reasons for the delinquency.

10. The personal representative has paid all required bond

premiums.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 712, Sec. 6, eff. Sept. 1, 1993;

Acts 1993, 73rd Leg., ch. 957, Sec. 69, eff. Sept. 1, 1993; Acts

1997, 75th Leg., ch. 1403, Sec. 2, eff. Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 405A. DELIVERY OF PROPERTY. The court may permit a resident

executor or administrator who has any of the estate of a ward to

deliver the estate to a duly qualified and acting guardian of the

ward.

Added by Acts 1995, 74th Leg., ch. 1039, Sec. 14, eff. Sept. 1,

1995.

Text of article effective until January 01, 2014

Sec. 406. PROCEDURE IN CASE OF NEGLECT OR FAILURE TO FILE FINAL

ACCOUNT; PAYMENTS DUE MEANTIME. (a) If a personal representative

charged with the duty of filing a final account fails or neglects

so to do at the proper time, the court shall, upon its own

motion, or upon the written complaint of any one interested in

the decedent's estate which has been administered, cause such

representative to be cited to appear and present such account

within the time specified in the citation.

(b) If the whereabouts of the personal representative and heirs

of a decedent are unknown and a complaint has not been filed by

anyone interested in the decedent's estate, the court may, on or

after the fourth anniversary after the last date on which letters

testamentary or of administration are issued by the court clerk,

close the estate without a final accounting and without

appointing a successor personal representative.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 1876, ch. 758, Sec. 3, eff. Aug. 27,

1979; Acts 1993, 73rd Leg., ch. 898, Sec. 1, eff. June 19, 1993;

Acts 1993, 73rd Leg., ch. 957, Sec. 70, eff. Sept. 1, 1993; Acts

1999, 76th Leg., ch. 827, Sec. 1, eff. Sept. 1, 1999.

Text of article effective until January 01, 2014

Sec. 407. CITATION UPON PRESENTATION OF ACCOUNT FOR FINAL

SETTLEMENT. Upon the filing of an account for final settlement

by temporary or permanent personal representatives of the estates

of decedents, citation shall contain a statement that such final

account has been filed, the time and place when it will be

considered by the court, and a statement requiring the person or

persons cited to appear and contest the same if they see proper.

Such citation shall be issued by the county clerk to the persons

and in the manner set out below.

1. In case of the estates of deceased persons, notice shall be

given by the personal representative to each heir or beneficiary

of the decedent by certified mail, return receipt requested,

unless another type of notice is directed by the court by written

order. The notice must include a copy of the account for final

settlement.

2. If the court deems further additional notice necessary, it

shall require the same by written order. In its discretion, the

court may allow the waiver of notice of an account for final

settlement in a proceeding concerning a decedent's estate.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1959, 56th Leg., p. 641, ch. 294, Sec. 1, eff. May 30,

1959; Acts 1979, 66th Leg., p. 1755, ch. 713, Sec. 30, eff. Aug.

27, 1979; Acts 1983, 68th Leg., p. 4558, ch. 756, Sec. 1, eff.

Sept. 1, 1983; Acts 1993, 73rd Leg., ch. 957, Sec. 71, eff. Sept.

1, 1993.

Text of article effective until January 01, 2014

Sec. 408. ACTION OF THE COURT. (a) Action Upon Account. Upon

being satisfied that citation has been duly served upon all

persons interested in the estate, the court shall examine the

account for final settlement and the vouchers accompanying the

same, and, after hearing all exceptions or objections thereto,

and evidence in support of or against such account, shall audit

and settle the same, and restate it if that be necessary.

(b) Distribution of Remaining Property. Upon final settlement of

an estate, if there be any of such estate remaining in the hands

of the personal representative, the court shall order that a

partition and distribution be made among the persons entitled to

receive such estate.

(c) Discharge of Representative When No Property Remains. If,

upon such settlement, there be none of the estate remaining in

the hands of the representative, he shall be discharged from his

trust and the estate ordered closed.

(d) Discharge When Estate Fully Administered. Whenever the

representative of an estate has fully administered the same in

accordance with this Code and the orders of the court, and his

final account has been approved, and he has delivered all of said

estate remaining in his hands to the person or persons entitled

to receive the same, it shall be the duty of the court to enter

an order discharging such representative from his trust, and

declaring the estate closed.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1979, 66th Leg., p. 1877, ch. 758, Sec. 4, eff. Aug. 27,

1979; Acts 1993, 73rd Leg., ch. 957, Sec. 72, eff. Sept. 1, 1993.

Text of section as repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10

Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

602, Sec. 10

Without reference to the amendment of this section, this section

was repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Sec. 409. MONEY BECOMING DUE PENDING FINAL DISCHARGE. Until the

order of final discharge of the personal representative is

entered in the judge's probate docket, money or other thing of

value falling due to the estate while the account for final

settlement is pending may be paid, delivered, or tendered to the

personal representative, who shall issue receipt therefor, and

the obligor and/or payor shall be thereby discharged of the

obligation for all purposes.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 73, eff. Sept. 1, 1993.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

602, Sec. 10, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Text of article effective until January 01, 2014

Sec. 410. INHERITANCE TAXES MUST BE PAID. No final account of an

executor or administrator shall be approved, and no estate of a

decedent shall be closed, unless the final account shows, and the

court finds, that all inheritance taxes due and owing to the

State of Texas with respect to all interests and properties

passing through the hands of the representative have been paid.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1989, 71st Leg., ch. 1035, Sec. 16, eff. Sept. 1, 1989.

Text of article effective until January 01, 2014

Sec. 412. OFFSETS, CREDITS, AND BAD DEBTS. In the settlement of

any of the accounts of the personal representative of an estate,

all debts due the estate which the court is satisfied could not

have been collected by due diligence, and which have not been

collected, shall be excluded from the computation.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956.

Text of article effective until January 01, 2014

Sec. 414. PROCEDURE IF REPRESENTATIVE FAILS TO DELIVER ESTATE.

If any personal representative of an estate, upon final

settlement, shall neglect to deliver to the person entitled

thereto when demanded any portion of an estate or any funds or

money in his hands ordered to be delivered, such person may file

with the clerk of the court his written complaint alleging the

fact of such neglect, the date of his demand, and other relevant

facts, whereupon the clerk shall issue a citation to be served

personally upon such representative, apprising him of the

complaint and citing him to appear before the court and answer,

if he so desires, at the time designated in the citation. If at

the hearing the court finds that the citation was duly served and

returned and that the representative is guilty of the neglect

charged, the court shall enter an order to that effect, and the

representative shall be liable to such person in damages at the

rate of ten per cent of the amount or appraised value of the

money or estate so withheld, per month, for each and every month

or fraction thereof that said estate or money or funds is and/or

has been so withheld after date of demand, which damages may be

recovered in any court of competent jurisdiction.

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. Amended

by Acts 1993, 73rd Leg., ch. 957, Sec. 74, eff. Sept. 1, 1993.