Texas Estates Code Chapter 201, Subchapter D: Advancements

Subchapter D of Chapter 201 governs when and how lifetime transfers are treated as advancements against an heir’s intestate share.

These rules apply only in the context of intestate succession and only after heirs and their shares have been identified under Subchapters A, B, and C.

What Subchapter D Does (and Does Not Do)

What it does:

• Determines whether a lifetime gift is treated as an advance on an heir’s intestate share;
• Specifies the conditions under which an advancement is recognized; and
• Explains how an advancement affects distribution among heirs.

What it does not do:

• Determine who qualifies as an heir;
• Apply to testate estates (unless incorporated by will); or
• Recharacterize gifts absent the statutory requirements.

Advancements are a distribution adjustment, not an entitlement rule.

When Subchapter D Applies

Subchapter D applies only if:

1. the decedent died intestate;
2. the recipient of the lifetime transfer is an heir; and
3. the statutory requirements for an advancement are satisfied.

If those conditions are not met, lifetime transfers are not treated as advancements under this subchapter.

Sections in Subchapter D

Subchapter D consists of the following sections, with links to the corresponding discussions on this site:

• Section 201.151 — Determination of Advancement; Date of Valuation
  Defines when a lifetime transfer is treated as an advancement and how the advancement is valued.
• Section 201.152 — Survival of Recipient Required
  Addresses the effect of the recipient’s failure to survive the decedent on advancement accounting.

Reading Subchapter D Correctly

A common error is to assume that substantial lifetime gifts automatically reduce an heir’s intestate share. Subchapter D rejects that assumption.

Instead, advancement treatment depends on specific statutory conditions, typically requiring contemporaneous documentation or acknowledgment.

Proper intestacy analysis therefore proceeds in sequence:

1. Identify heirs and entitlement (Subchapters A and B);
2. Determine distribution mechanics (Subchapter C); and
3. Apply advancement rules only if the statute permits (Subchapter D).