Texas Law on a Spouse's Death & Debt

When a spouse dies in Texas, the state requires a probate court process so that all outstanding debts can be settled legally. Texas is a community property state, however, so the surviving spouse may be held liable for debt accounts that were opened during the marriage even if the decedent was the only person listed on the account. Community property states get more complicated with the probate process, so consult with a Texas probate attorney to learn the full legal details.

Texas Probate Court

The purpose of the Texas probate court process is to collect any assets the decedent had, pay off his debts, and ensure that anything remaining is distributed to heirs and beneficiaries appropriately. When the decedent has enough assets to cover all his outstanding debts, the surviving spouse should have no remaining debt liabilities.

Administrator Responsibilities

The probate court judge assigns a personal representative for the decedent's estate, and that representative must follow specific laws and procedures during the probate process. An estate administrator can be selected by the decedent before she passes or the judge will select someone for the job. The estate administrator is responsible for distributing death notices, publishing notices in the newspaper, taking an inventory of all assets and making sure all debts are paid.

Debt Payment Order

Texas has a specific order of importance for estate debt payment. Funeral expenses and a portion of medical bills have first priority, while estate administrative expenses have second priority. Additional priorities include back child support payments, taxes and claims for the cost of containment or medical assistance. The lowest priority of debt repayment includes all other debts, such as credit cards and vehicle loans. If need be, the estate administrator will liquidate assets to cover all valid debts in the appropriate order.

Potential Creditor Issues

If assets remain at the end of the probate proceedings, beneficiaries and heirs will receive the remaining items according to the terms of the decedent's will. If there weren't enough assets, the estate is declared insolvent. In Texas, if creditors feel the estate was not administered properly or they feel the decedent purposely made changes to property to keep it out of probate, they can sue the beneficiaries for a portion of those assets. Some creditors may also attempt to persuade a surviving spouse to pay off debts they are not legally obligated to.