Texas Probate: What Happens to Medical Bills After Death?

 Posted on October 09, 2025 in Estate Planning

When a loved one dies in Texas, family members may be overwhelmed with grief while also dealing with estate issues like probate (Title 2, Subtitle F, Chapter 256, Section 256.001) and medical expenses. Hospital stays, long-term care, and final medical expenses can add up quickly. Heirs may wonder whether they are personally responsible for the decedent’s medical bills, although Texas law generally treats medical debt as a liability of the estate, rather than individual heirs.

Whether medical debts will be paid is often determined by the probate process, the community property system, and the manner in which creditors file claims. However, if the estate is insolvent, are family members ultimately responsible for the decedent’s medical expenses? For answers to this question – and others regarding Texas estate planning – an experienced Flower Mound, TX estate planning attorney should be consulted.

What Type of Obligations are Medical Debts in Texas?

Medical bills are considered unsecured debts of the decedent, and are usually paid from estate assets before any distributions can be made to heirs. Unless an heir co-signed or guaranteed the medical debt, they are not automatically liable for the debt. The order of payment of debts in probate (in order of priority) is:

• Federal Taxes
• Funeral expenses and any expenses associated with the decedent’s last illness.
• Any administrative costs associated with the decedent’s estate.
• Secured claims, such as mortgages and liens.
• Child Support
• Texas State Taxes
• Medicaid payments
• Unsecured debts, which include credit card debt and medical expenses.

How Do Texas Community Property Laws Affect the Payment of Debt After a Decedent’s Death?

If there is a surviving spouse, then that spouse may share responsibility in paying the medical debt of his or her deceased spouse. There is, however, a distinction between separate and community property when it comes to paying debts. If the medical debt was amassed during the marriage, then the spouse could face exposure for unpaid medical bills.  

What if the Estate is Insolvent?

There is a specific timeline for creditors to file claims in Texas probate; if they miss the timeframe, they may not be able to file a creditor claim against the estate. If the estate’s assets are insufficient to pay creditor claims, creditors may receive partial payment, or nothing at all. Heirs are not required to use their personal funds to cover unpaid medical bills. If, however, Medicaid paid for long-term care, then under the Medicaid Estate Recovery Program (MERP), Medicaid is entitled to recoup some of its costs, but only if there is no surviving spouse (or after the surviving spouse’s death).

Is Texas Medical Debt Handled the Same When Probate Alternatives are Used?

In Texas, probate alternatives like Small Estate Affidavit (SEA) and muniment of title differ significantly in how they handle the medical debt of a decedent. However, neither makes heirs personally liable for the decedent’s medical debt. The SEA is used for smaller estates with no will, when the value of the non-exempt estate does not exceed $75,000, and all known debts of the estate must be listed on the affidavit.

Heirs in SEA are only entitled to assets that exceed the estate’s known liabilities and obligations, and all medical bills must be paid from the non-exempt assets before heirs can receive their inheritance. A muniment of title can only be used by an estate with no unpaid debts, except those secured by a lien on real estate, such as a mortgage. A muniment of title cannot be used in estates where there are outstanding medical bills or other unsecured debts.

Contact a Denton County, TX Elder Law Attorney

Medical debt that survives a decedent can result in confusion, stress, and even fear for surviving family members. Although heirs are not generally held personally liable, the probate process must be handled carefully to protect both the surviving spouse and the estate.

An experienced Flower Mound, TX probate lawyer from Colbert Law Group PLLC will work on your behalf to preserve as much of the estate as possible and bring peace of mind during a difficult time. Attorney Colbert has experience serving as an administrative law judge and as a tribal judge for the Chickasaw Indian Nation. Call 972-724-3338 to schedule your initial attorney meeting.