The Texas Constitution and the Family Code of Texas "fix" inheritance as separate property. Separate Property remains separate property regardless of how it mutates, i.e. an inherited diamond ring may be traded in for an acre of land which may be traded for shares of IBM which may be traded for an automobile, and the resulting property will be Separate Property.
Regardless of how the separate property exists and regardless of its mutations, it remains separate property.
Certainly, that is not the end of the analysis of what are the legal and equitable interests that exist in the house.
Interests in the house by the non-inheritor may be asserted as follows:
1. the inheritance fund was so commingled with community funds to the extent that the inheriting party cannot clearly trace the funds from inheritance to the house purchase. One example of commingling is the failure to withdraw earned interest on the inheritance funds from the corpus of the inheritance funds, for interest income on separate property is community property.
2. community funds were used to pay the balance of the mortgage note, or to pay taxes on the home, or to pay insurance on the home, or to pay for improvements to the home;
3. at closing upon the house sale, the deed named both parties as owners of the house.
These factors are overriding and not exhaustive. They are listed to show the need for scrutiny and careful accounting to determine the relative rights of the separate property estate and the community property estate, which are not determined solely by whether or not the house is determined to be Separate Property. Therefore, seek good learned counsel, i.e. a Board Certified Family Attorney, not just a "generalist" attorney.
2007-02-23 02:08:59
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answer #1
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answered by dejrevilo@sbcglobal.net 2
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When separate property money like an inheritance is used to purchase a house during the marriage and the house in put in the name of both spouses, most states will consider this a "gift" to the community estate. However, I only practice law in California so you really should consult a Texas attorney rather than relying on any answer you receive here.
2007-02-23 00:13:13
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answer #2
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answered by Carl 7
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It's very important that you get the right answer and the best source is a lawyer or CPA!
from the article in wikipedia (see the link)
Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called separate property. See division of property.
Consumers who are considering how to hold property should either research primary source materials carefully,
or consult with a lawyer or Certified Public Accountant.
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Inheritance is where prenuptial or postnuptial agreements might be good ideas.
2007-02-23 00:11:45
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answer #3
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answered by birdwatcher 4
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