The standard “This is not legal advice” applies here. This is just a framework article to get you more familiar with Muniment of Title and its application, the steps needed to apply for muniment of title, and some valuable items to consider to avoid the downsides or unexpected complications, the 5 essential elements needed for Muniment of Title, along with some words of wisdom (caution!) to those aspiring legal DIYers out there.
A muniment of title proceeding is unique to Texas and is where when heir(s) to an estate can ask a court to prove the validity of a will without full estate administration. In short, Muniment of Title is a legal document that shows evidence of ownership of an asset and allows the last will to be used as proof of title, as if it were a deed, to property. When the statute was first conceived, only real estate was permitted to be exercised under this procedure, but that has been expanded to include other assets, such as bank accounts. To qualify, the decedent must have had a valid will (and it is uncontested and proven or “provable”) at the time of death and the estate must have no unpaid debt except for debt secured by real estate. In short, nothing in the estate needs attending to, just simply transferring assets to the beneficiaries.
The process is rather straightforward and can be started anytime within four years after the decedent’s death. (It can be used AFTER the 4 years, but other rules apply which are beyond the scope of this post.)
Steps 1 and 2 below, involving the attorney are possible to skip if you qualify for “pro se” representation – this requires you to be the sole beneficiary. Some courts allow this, while others don’t. Either way, I strongly advise anyone to, at a minimum, have an attorney review your application and supporting documentation even if you elect to not have them represent you in court. I’ll explain the whys further on.
Muniment of Title Documents
Debts are easy to ascertain. The second aspect becomes more subjective and up to the judge’s interpretation. For example, some wills have very imprecise language, might not list heirs by name, and by their structure may leave grey areas where it isn’t as straightforward as one would like. In these cases back to court you go to request they issue a ruling to clarify.
For those DIYers out there, Bexar County has a brief, but informative pdf guide. Again, I cannot more strongly urge you to have a probate attorney review your application.
Muniment of Title may be a possible alternative for a simple estate, but it does follow very strict requirements:
It makes sense to invest a bit of time and research up front. Not only is this invaluable in closing out the loved one’s affairs, but provides you with the information needed to make appropriate, effective decisions.
Often, folks will have a credit card or final medical bills. Sometimes it makes sense for beneficiaries to pay these on their own, especially if the amounts are relatively small. Be cautious though, as there could be unintended consequences for doing so, and rushing in with your checkbook may cause more harm than good; I’ll go into this more in a bit.
If the estate has assets, such as stocks or brokerage accounts without a listed beneficiary, then the estate must have an executor or administrator in order to facilitate the retitling and distribution. If the decedent had long-term care, such as a nursing home or home and community-based services funded by Medicaid, then Medicaid Estate Recovery Program, or MERP, will establish a claim on the estate to recover monies spent. As such Muniment of Title procedure cannot be used in these circumstances.
Muniment of Title works well for real property, such as a home, commercial property (not owned by an LLC or business entity, of course), or for oil/gas/mineral interests. For other accounts, such as a bank or financial accounts, you can be at the mercy of the financial institution.
Because this procedure is unique to Texas, many of the larger, multi-state banks may balk and not be willing to accept it. Contacting the financial institution in advance to ensure they’ll accept Muniment of Title without hassle is well worth your time.
In short, Muniment of Title is best for estates with no unsecured debts, no MERP entanglements, and the only assets involved are real property and cash accounts.
Often a close relative thinks they have a very good handle on the assets and financial position of their loved one. Often they’re spot on, other times there might be unknown assets or debts.
The standard procedure I employ with my Executor Navigator services, which I urge you to consider deploying yourself even if you don’t retain our services, is to rigorously scan the various financial documents, mail, and other correspondence. When I go through our identity-theft prevention procedure to lock down the decedent’s credit account, I request a final report. It’s a treasure trove in finding a variety of debts, including payment status and balances, and, of course, the obligatory 10,000 store cards we all have but long-forgotten but signed up for to get that free drink koozie.
Make a list, track items down, and review any statements or contracts so you fully understand what they are. Something as innocuous as a service agreement may have a cancellation clause, triggering an estate debt, however relatively modest.
Don’t be quick to pay something yourself or take on a debt or payment plan on the decedent’s behalf. It might appear to make sense, for example, to contact a creditor or collection agency if you find a notice to take over payment or pay off the debt in exchange for hurrying along the process using Muniment of Title. But you may not know if the debt is valid and worse yet if you don’t know the contractual terms of the debt, you might agree to pay something that even the deceased didn’t even have to pay.
The smart move is to document all the assets and debts with details. Type, amounts, age, terms anything that provides specifically what it is. Don’t rush to fill out the forms or hurry to court if you qualify for “pro se” representation (this is DIY lawyering when you’re the only heir). Invest the time in getting familiar with the details.
No judgments, no quick decisions. Just pulling together the facts. But trust me, it’ll save you endless aggravation and expense later if you end up playing legal “whack-a-mole” with various accounts that you’ve overlooked in your rush.
Once you have everything down, then approach a qualified probate attorney. Present them with your findings, including the will. They can review this in its entirety and advise you if the estate is a good candidate for Muniment of Title or if another path is more advisable.
Even if you want to save the attorney fees and file a Muniment of Title yourself, I cannot advise more strongly than to at least have an attorney review your paperwork and supporting materials. This is a relatively small investment as compared to the wasted fees and time if the application is refused or if a creditor comes looking for you later.
At Independence Navigator, in addition to contacting the credit agencies and helping with notifying services and utilities, I’d contact banks to make sure they accept Muniment of Title. I’d also assemble a complete asset and debt dossier with critical information and highlight suspected problem areas so that the probate attorney can more easily ascertain the best course of action.
Executor Navigator, LLC (d/b/a Independence Navigator) was founded by Shannon Tefft-Janes in 2022 and offers resource and support services for Executors and Administrators of Estates in addition to Personal Money Management and Financial Organization Services. Over the years, after seeing many friends and family members struggle when they administered a loved-ones estate (and being called in once things went astray), she noticed that there was a need for a compassionate, efficient service that filled the gaps between the attorneys, accountants, and other professionals involved in the estate administration process.
If you need assistance, or just need a sounding board, please schedule a no-obligation, complimentary 30-minute consultation. You’re welcome to invite other family or friends to join. Also, please be sure to get a free Estate Administration Checklist.
