When you receive an inheritance, whether it’s a family home, a sum of money, or other assets, it’s important to understand how to maintain its status as separate property. In Texas, inherited property is generally considered separate property. However, it can easily become mixed with marital assets, making ownership unclear in the event of a divorce. Here’s what you need to know to keep your inherited property separate.

Avoid Mixing Funds or Assets

One of the most common ways inherited property loses its separate status is by mixing it with marital assets, also called “commingling.” For example, depositing inherited money into a joint bank account or using it for shared expenses can make it difficult to claim as separate property later. To avoid this, keep inherited funds in a separate account in your name only and avoid using them for marital purposes.

Keep Titles and Deeds in Your Name

If you inherit real estate, keep the property titled solely in your name. Adding your spouse’s name to the title or using joint funds to pay for taxes, upkeep, or mortgage payments on the property could turn it into marital property. Maintain detailed records of any expenses you pay related to the property to show they came from your separate funds.

Avoid Using Inherited Assets for Marital Improvements

Using inherited money or property to improve shared assets can also blur the lines. For instance, using an inheritance to renovate a jointly owned home may cause the inheritance to be considered a contribution to marital property. Instead, keep inherited funds separate from marital projects.

Keep Detailed Records

Documentation is key. Keep records of where the inheritance came from, such as a will or trust, and maintain receipts or bank statements that show how the inheritance has been used. Proper records help preserve your claim that the property remains separate.

Consult an Attorney

Inheritance laws can vary, and preserving your separate property rights requires careful planning. Consulting a knowledgeable attorney can help you take the right steps to protect your inheritance and avoid disputes in the future.

Contact Springer & Lyle

If you have questions about keeping inherited property separate, the team at Springer & Lyle is here to help. Contact Daniel Abasolo at 940.387.0404 to schedule a consultation and learn how we can assist you in protecting your assets.

Springer & Lyle is located at 1807 Westminster, Denton, TX 76205.