What assets are exempt from probate in Texas?

In Texas, "exempt" from probate actually covers two different things: assets that bypass the probate process entirely, and property that stays in the estate inventory but is shielded from creditors for the surviving family.

Non-probate assets never enter the probate estate because they pass by contract or title directly to a beneficiary or co-owner. These include life insurance with a living beneficiary, retirement accounts (401(k)s, IRAs, pensions) with named beneficiaries, payable-on-death and transfer-on-death accounts, jointly owned property with right of survivorship, transfer-on-death deeds, and assets titled in a revocable living trust.

Exempt property does belong to the estate and is typically listed on the inventory, but Texas law sets it aside for the surviving spouse, minor children, and certain other dependents, protected from most unsecured creditors:

• The family homestead (up to 10 acres urban, or 100 to 200 acres rural)
• Home furnishings and family heirlooms
• Farming or ranching vehicles and implements
• Tools, books, and equipment used in a trade or profession
• Clothing, jewelry (subject to a value cap), two firearms, and one or two qualifying motor vehicles

Because exempt property still needs to be identified and valued on the inventory even though it's protected from creditors, an accurate probate appraisal of household goods, jewelry, vehicles, and furnishings is often necessary to complete the filing correctly. For more on what has to be listed, see our guide on what possessions need to be valued for probate.