Legal Question in Real Estate Law in Texas

Re: Selling of Real Estate by Mentally Unsound

Hello there -

To begin with, I want to say that I sympathize with your position. My family has had to deal with many of the same issues. By far, the processes incountered tend to be overly-complex and cumbersome. For your case, the sale of the grandmother-in-law's property can only be done by either 1) a person who has been given a durable power-of-attorney over the grandmother-in-law's property or 2) a person who has been appointed guardian of the estate by a court. Obviously, the first option would be the easiest and least expensive, though it is unlikely she has executed such a document. If she has, the person holding the power of attorney could dispose of the property however he or she sees fit, keeping in mind that if his/her decision is challenged, a court would look at their actions on the basis of fairness and best interest of the gm-in-law.

A guardianship is the other possibility. Guardianships require court involvement, court intervention and some outside investigation. The court would appoint an attorney ad litem to investigate the sitation and make sure that a guardianship is in the person's best interest. Inventories and accountings would be due from time to time, and the court may have to approve large transactions or transactions such as this involving real estate. The house would not necessarily have to be sold for "market value", but it would have to be sold for a reasonable sum == perhaps at an appraised value other than that used by the county/city/school appraisal district. Guardianships also tend to be expensive, as they are time-consuming to attorneys and recur for accountings at least yearly. Many attorneys in this county will not charge any amount below $4000 or $5000 for a guardianship. Others charge more, some charge less. Our firm generally charges $2000 for such cases.

Unless your grandmother-in-law has done some estate planning work and executed the appropriate legal documents, you should be watchful of her situation. In given circumstances, such as when certain federal agencies become involved or when hospital/doctor bills mount, her assets may be subject to liquidation. You may want to protect her through a guardianship before that time.

Should you have any further questions or concerns, I will be happy to consult with you at no charge via e-mail: [email protected] or via phone at 254.756.5004 Thanks, and all the best to you in the resolution of this issue.