Can you recover a decedent’s unclaimed funds from the Texas Comptroller?
At one time the claims process for a decedent who did not have claim filed prior to being deceased, the process was different and controlled by the Estates code and not the Property Code. The estates code required the filing of a lawsuit in District court in Travis county within a four-year deadline.
However on September 1, 2019, the Estates Code was amended to adopt the Property Code’s claims process, removing the requirement to file suit. Under the Property Code process, if the Comptroller finds a claim valid on behalf of a decedent, the Comptroller will distribute the property to the appropriate executor who holds current letters testamentary or to legal beneficiaries under a will filed for probate or filed as a muniment of title.
If the purported owner has died intestate (without a will), the Comptroller will distribute the property: (1) to the legal heirs who are entitled to inherit pursuant to Texas Estates Code §§ 201.001 and 201.002; (2) to those heirs who have been established by a court in an heirship; or (3) to the court-appointed administrator of the owner’s estate.
One caveat should be pointed out. House Bill 3598, which also goes into effect on September 1, 2019, modifies Property Code §74.501. The modified provision will allow a claim by an administrator on behalf of a decedent only if the claim is filed before the fourth anniversary of the property owner’s death.
