In re Estate of Heider, 496 S.W.3d 118 (Tex. App.—Dallas 2016, no pet.).
Testatrix’s will made a specific devise of land to
Son. The land was subject to a secured debt. A dispute arose between Son
and Remainder Beneficiary regarding whether the debt should be
exonerated by other estate property not specifically devised. The trial
court ruled in favor of Son that a portion of the debt secured by
specific devise is to be exonerated. Remainder Beneficiary appealed.
The appellate court reversed. The court began its
analysis by examining Estates Code §§ 255.301and 255.302 which set forth
a presumption that a specific gift passes subject to secured debts
unless the will expressly provides otherwise. The court rejected Son’s
claim that the devise which made no mention of how a secured debt was to
be handled specifically stated that it should be exonerated. The court
also rejected Son’s claim that a will provision granting the executor
the ability to transfer property subject to debts meant that if the
executor does not exercise discretion, the debt is exonerated.
Moral: Whenever a testator makes a specific
gift of property, the will should expressly address the issue of
exoneration.