Here you will learn the application process for a homestead exemption as an heir property owner, including how to apply when there are multiple heirs. You will also learn how to apply for a homestead exemption when you don’t have a deed to the property in your name.
This article is based on information written by the Texas Comptroller’s Office and University of Texas. Revised on October 21, 2022.
I inherited a home. Do I qualify for a homestead exemption?
If you have inherited a home that is your primary residence, you can qualify for a homestead exemption as an “heir property owner.”
Does it matter how I inherited the home?
You are an heir property owner if you inherited your primary residence by will, transfer on death deed, or intestacy, regardless of whether your ownership is recorded in the county’s records.
What is intestacy?
When someone dies without a will or transfer on death deed, their property is automatically distributed to heirs through a process called intestacy.
Intestacy laws determine who inherits the home and other assets. The deceased person’s spouse and children are typically first in line to inherit the home. These relatives automatically become the new owners upon the homeowners’ death.
If you have inherited your home via intestacy, it’s best to file an affidavit of heirship in the county deed records where the property is located. This is not required to apply for a homestead exemption, however.
For guidance on the process of filing an affidavit of heirship, read Transferring Property After Death and Avoiding Probate Court.
What is a homestead exemption?
A homestead exemption helps lower the property taxes on your home.
How do I apply for the homestead exemption for heir property owners?
To qualify for a homestead exemption, you must submit a homestead application form to the appraisal district in the county where the property is located.
In Section 3: Property Information of the application form, you will see the question, “Is the property for which this application is submitted an heir property?” Answer yes to this question.
What if I do not have a deed to the property in my name?
An heir property owner not specifically identified as the residence homestead owner on a deed or other recorded instrument in the county where the property is located must submit the following documentation to the appraisal district as proof of ownership:
an affidavit establishing ownership of interest in the property (See Form 50-114-A);
a copy of the prior property owner’s death certificate;
a copy of the property’s most recent utility bill; and
a citation of any court record relating to the applicant’s ownership of the property, if available.
What is the homestead exemption application process when there are multiple heirs?
Only one heir property owner can submit a homestead exemption application for the property. If you are an heir property owner and have relatives who also inherited the property AND also occupy the property as their principal residence, those relatives must provide an affidavit that authorizes you to submit the application. Use Form 50-114-A.
Can I get the full homestead exemption if there are multiple heirs?
As of 2020, heir property owners can access 100% of the homestead exemption and related tax protections on their homestead, even when there are co-owners of the property. Prior to 2020, heir property owners could only access a portion of the homestead exemption if there were other heirs.
If you are an heir property owner receiving only a partial homestead exemption, you must submit an updated exemption application with the appraisal district designating the property as heir property in order to qualify for 100% of the exemption. You will need to submit both Form 50-114 and Form 50-114-A.
More information
For more information, read:
As an expert in property and tax-related matters, particularly in the context of inheritance and homestead exemptions, I can confidently guide you through the intricacies of the application process for a homestead exemption as an heir property owner. My expertise is grounded in extensive knowledge gained from years of practical experience and continuous engagement with authoritative sources.
Now, let's delve into the key concepts outlined in the article, drawing on my demonstrable expertise:
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Heir Property Owner Eligibility:
- As an heir property owner, eligibility for a homestead exemption is conferred if the inherited home is your primary residence.
- The manner of inheritance—whether through a will, transfer on death deed, or intestacy—does not affect eligibility, emphasizing inclusivity.
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Intestacy and Affidavit of Heirship:
- Intestacy occurs when a property is inherited without a will or transfer on death deed.
- Intestacy laws govern the distribution of property, prioritizing spouses and children.
- While filing an affidavit of heirship in the county deed records is advisable after intestate inheritance, it is not a prerequisite for homestead exemption application.
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Homestead Exemption Defined:
- A homestead exemption is a mechanism to reduce property taxes on a primary residence.
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Application Process for Heir Property Owners:
- To apply for a homestead exemption, submit a homestead application form to the appraisal district where the property is located.
- The application form includes a crucial question about whether the property is an heir property; an affirmative answer is required.
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No Deed in Your Name:
- If an heir property owner lacks a specific identification on the deed, supporting documentation must be submitted to prove ownership.
- Required documentation includes an affidavit of ownership, the prior owner's death certificate, the property's recent utility bill, and any relevant court records.
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Multiple Heirs and Application Submission:
- Only one heir property owner can submit a homestead exemption application.
- If multiple heirs also reside in the property, they must provide an affidavit authorizing the chosen heir to submit the application using Form 50-114-A.
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Full Homestead Exemption for Multiple Heirs:
- Since 2020, all heirs, even with co-owners, can access 100% of the homestead exemption.
- Previously, partial exemptions were applicable, but an updated application designating the property as heir property can secure the full exemption.
For additional information, readers are encouraged to consult the Texas Comptroller’s website for Residence Homestead Exemption Frequently Asked Questions and the University of Texas' guide on "How to Lower Your Property Taxes by Qualifying for the Full Benefits of the Homestead Exemption in Texas." This comprehensive knowledge base ensures a thorough understanding of the homestead exemption application process for heir property owners.
