Texas Estates Code Sec. 201.151: Determination of Advancement; Date of Valuation

This section governs when a lifetime transfer is treated as an advancement against an heir’s intestate share.

The Statutory Rule

Sec. 201.151. DETERMINATION OF ADVANCEMENT; DATE OF VALUATION.

(a) If a decedent dies intestate as to all or part of the decedent's estate, property that the decedent gave during the decedent's lifetime to a person who, on the date of the decedent's death, is the decedent's heir, or property received by the decedent's heir under a nontestamentary transfer under Subchapter B, Chapter 111, or Chapter 112 or 113, is an advancement against the heir's intestate share of the estate only if:

(1) the decedent declared in a contemporaneous writing, or the heir acknowledged in writing, that the gift or nontestamentary transfer is an advancement; or

(2) the decedent's contemporaneous writing or the heir's written acknowledgment otherwise indicates that the gift or nontestamentary transfer is to be considered in computing the division and distribution of the decedent's intestate estate.

(b) For purposes of Subsection (a), property that is advanced is valued as of the earlier of:

(1) the time that the heir came into possession or enjoyment of the property; or

(2) the time of the decedent's death.

Explanation

What it does: This section defines when a lifetime transfer is treated as an advancement against an heir’s intestate share and establishes how an advancement is valued.

When the section applies: This section applies only if:

• the decedent dies intestate as to all or part of the estate; and
• the recipient of the transfer is an heir on the date of the decedent’s death.

Transfers covered: The statute applies to:

• property given by the decedent during the decedent’s lifetime; and
• certain nontestamentary transfers received by an heir under Chapters 111, 112, or 113.

Advancement not presumed: A lifetime transfer is treated as an advancement only if:

• the decedent declared in a contemporaneous writing that the transfer is an advancement; or
• the heir acknowledged in writing that the transfer is an advancement; or
• the contemporaneous writing or acknowledgment otherwise indicates that the transfer is to be considered in computing the division and distribution of the intestate estate.

Date of valuation: Property treated as an advancement is valued at the earlier of:

• the time the heir came into possession or enjoyment of the property; or
• the time of the decedent’s death.

Key concept: Advancement treatment depends entirely on contemporaneous written evidence and does not arise by implication.