Skipped Probate? “Muniment of Title” Might Restore the Deed

Sometimes, when people’s rights to a deed collide, muniment of title can restore the deed to one of them. And sometimes, this process is used on purpose, to streamline probate.

Let’s take a look at this strange phrase that can be well worth knowing about.

Gloria’s Uncle Left Her a House…

Clark Jones died more than four years ago. Clark was a Texas homeowner. He had willed his house to his niece, Gloria Smith.

Gloria was the named executor in Clark’s will. This makes sense. As the beneficiary to Clark’s only significant asset, Gloria had a big reason to start the probate case in the county court. But Gloria never did so.

The Jones family, who are also relatives of Clark Jones, have been living in the home all this time.

Now, Gloria needs to sell the home.

But the Jones Family Lives There Now.

Now, what about the family living in the home? Do the Joneses have rights?

Remember, Gloria Smith is the named beneficiary to the deed. But Gloria has a couple of problems:

• Because Gloria skipped the probate process, the home was never formally transferred by a probate court.

• Gloria, the named beneficiary to the deed, sat on her rights for years without exercising them.

Beneficiaries can’t wait and take all the time they wish to claim property that was willed to them.

Real Estate Law Demands Clarity.

Gloria never made her intentions clear. She was named as executor, but didn’t take the time to follow up. The Joneses stayed in the home, and Gloria didn’t act. Gloria’s passive behavior ultimately benefited the Joneses.

Each state sets forth a timeline for beneficiaries to act. The Texas probate system is no exception. Indeed, all states would expect the will’s named executor to get the probate case opened in a timely manner.

Gloria needed to have taken the will to the probate court in the county where the home exists. If no one petitions for probate, a local government typically passes property along by issuing an affidavit of heirship and filing it with the county recorder of deeds. That’s what happened here. That’s how Clark’s sister Katrina Jones got the home.

Looks like Gloria fell short of keeping up with the Joneses.

Could Muniment of Title Restore Gloria’s Rights?

Muniment of title isn’t available every time a family skips probate. When and where it’s available, its rules vary significantly depending on the state. Let’s take Texas as an example, though.

When someone in Texas dies with a will, probate has to start in four years, max.

After that, the will expires. The executor named in the will is out.

There’s just one thing that can save the will. It’s the muniment of title process.

Can Gloria bring an action for muniment of title? She must look up the state law for the rules.

What Are the Rules for Muniment of Title?

In Texas, a petitioner in Gloria’s shoes would need to state a good reason for sitting on her rights for more than four years.

And another thing. Those who would get the home in the case of no will, through intestate succession, would need to be on board with the action. Intestate succession refers to the people who would get the home if no estate planning was done to pass the home along.

But that’s still not all. The will had to have existed specifically to pass the home to Gloria, and for no other reason. If a will leaves art, financial accounts, and/or other significant assets, a full probate case would be mandatory.

Gloria: 0. Katrina: 1.

Through her inaction, the deceased homeowner’s niece let the title go to her Aunt Katrina. Katrina, one of the Joneses who now occupies the home, is the late homeowner’s sister.

Why Katrina? Because Katrina would inherit under intestate succession. Under state law, if no will is brought to probate, the court goes down a list to find the first available heir. Siblings get dibs before nieces do.

So, the deed is Katrina’s. And Katrina has no interest in supporting Gloria’s claim.

Gloria sat on her rights. Now, Gloria has to acknowledge the Joneses’ right to the home. 

Some People Plan to Use Muniment of Title on Purpose.

Muniment of title has something going for it: simplicity. It bypasses the costly and time-consuming journey through full probate.  

Imagine you’re living in Tennessee, which recognizes muniment of title. You are a deed holder. You’d like your child Alvin to receive the deed after you pass on. The home is your only asset of real value.

When you pass away, with or without a valid will, your family lawyer could prepare to petition for a muniment of title. If you left a will, a probate judge has to review it, along with the petition.

The judge could then order the deed conveyed through the muniment process. The local register of deeds would then record the court’s order. The order substitutes for a deed transfer. So, when the judge signs off on the muniment of title, Alvin is the new deed holder. Well done!

But while the grant of a muniment of title is a relatively easy way out of full probate, it’s not always available, even with the best laid plans. If someone wants to challenge your will or has a significant claim against the title, the petition for muniment might fail.

Speak with an attorney about whether muniment of title is available for deeds in your state, and how to prepare your beneficiary to receive the deed.

When Only a Home Is Willed: Why Do We Need Probate?

Probate comes from a root word meaning prove. The court is the authority that determines and declares that the will is real and meets state requirements.

The court also declares that the named beneficiary does represent the late owner’s intentions and can legitimately issue an executor’s deed.

The court issues notices to people who are owed money by the estate (including the tax man). Debts get paid. The home passes without creditors’ claims hanging over it. And the court makes sure anyone who wants to challenge the will gets the opportunity.

In short, it’s probate that officially puts a will into effect. By submitting the will to the local court, Gloria could have received the home with a good title and a court-issued deed.

Is Muniment of Title an Option in Your Case?

In the right situation, muniment of title amounts to a speedy option for passing a deed along after the homeowner’s death. But it’s generally only available when the home is all that’s left in a will. And there are times when other potential heirs can block it. So it’s typically not a go-to estate planning tool.

If you’re looking to petition for a muniment of title, you might face barriers. An experienced lawyer in your state can provide legally sound guidance.

Note: The characters in this article are fictional, and any resemblance to real people is purely coincidental.