The litigation is often prosecuted by a personal injury law firm. They may or not may not be familiar with the rules that apply when there is a probate estate. Even the lawyers may not be aware of the distinction when settlement negotiations begin or know that only the court-appointed estate representative has the authority to settle claims belonging to the estate.
So what happens when an heir settles both his individual wrongful death claim and purports to settle a portion of the estate’s survival claim before any administrator has been appointed? Can that heir keep settlement funds explicitly designated as paid “for the benefit of the Estate”? The case of Reynolds v. Davis, No. 14-24-00473-CV, Tex. App.–Houston [14th Dist.] (Dec. 23. 2025), provides an opportunity to examine these questions.
Facts & Procedural History
Reynolds was a minor child. He died after being electrocuted in a pool in Houston, Texas. He was survived by his father, Rontae, and his mother, Angelica.
Both parents filed separate wrongful death lawsuits against the hotel. Rontae also filed an application seeking appointment as administrator of his son’s estate. Luna contested his appointment and sought a third-party dependent administrator instead.
Before the probate court could resolve the dispute, Rontae’s probate attorney made a settlement demand for six million dollars on behalf of Rontae’s individual wrongful death claim and his purported “interest” as an heir by law of the estate, even though Rontae had no authority to represent the estate.
In March 2022, Rontae signed a settlement agreement with the hotel and its insurers. The agreement stated Rontae was settling both his wrongful death claim and “his portion of the Estate’s survival claim in his capacity as ‘heir and as representative of the Estate.'” The agreement allocated $2.75 million of the $4 million total to be paid “for the benefit of the Estate of Khaleel Reynolds.” This money was paid to Rontae and his attorneys. The remaining $1.25 million was to be paid to Rontae individually.
At the probate trial in June 2022, Rontae abandoned his probate application. The probate court appointed Nicole B. Davis as dependent administrator in September 2022.
In April 2023, Administrator Davis sued Rontae, the hotel, and the insurers seeking return of the $2.75 million. One week before a summary judgment hearing, Rontae and the settling defendants produced a July 2023 agreement that removed all estate references and reallocated the entire $4 million to Rontae individually.
Administrator Davis filed a second amended petition asserting statutory turnover, fraudulent transfer, constructive fraud, and conspiracy claims. Rontae moved to dismiss under the Texas Citizens Participation Act. The trial court denied the motion, and Rontae appealed.
Survival Claims Under the Texas Estates Code
The Texas Estates Code creates a clear framework for who may pursue different types of claims after someone dies. Section 351.054(a)(1) grants the appointed estate administrator exclusive authority to bring claims on behalf of the estate. Only this representative has the right to assert claims belonging to the estate.
Survival claims belong to the estate rather than to individual family members. A survival claim allows the estate to recover damages the deceased person could have recovered if he had lived. These claims are distinct from wrongful death claims, which belong to specific family members as individuals.
The distinction affects who has standing to settle each type of claim. Family members can settle their own wrongful death claims because those claims belong to them personally. However, only the court-appointed administrator can settle survival claims because those claims are estate property.
Section 101.003 of the Texas Estates Code imposes a duty on administrators to recover possession of the estate and hold the estate in trust to be disposed of in accordance with the law. This duty extends to recovering money that was paid to settle estate claims but ended up in the wrong hands.
Can an Heir Settle the Estate’s Claims Before an Administrator is Appointed?
The short answer is no. Texas law is clear that only a court-appointed administrator has the authority to represent the estate and settle claims belonging to the estate. An heir has no inherent authority to act on behalf of an estate simply by virtue of being an heir.
This principle applies even during the period between death and the appointment of an administrator. The estate exists as a legal entity from the moment of death. Claims belonging to the estate belong to that entity regardless of whether an administrator has been appointed yet.
In Reynolds, the father purported to settle a portion of the estate’s survival claim and received $2.75 million designated as paid “for the benefit of the Estate.” However, he had no authority to make that settlement or receive that money. His status as an heir gave him the right to inherit from the estate after proper administration, not the right to represent the estate in settlement negotiations.
The fact that settlement proceeds were paid before an administrator was appointed does not change the legality of the transaction. Once an administrator was appointed, she had the duty and authority to recover property belonging to the estate.
What Constitutes Estate Property Subject to Turnover?
Texas Estates Code Section 101.003 authorizes administrators to pursue turnover actions to recover estate property wrongfully held by others. Settlement proceeds paid to resolve the estate’s survival claim constitute property acquired by the estate after death.
In Reynolds, the March 2022 agreement repeatedly stated Reynolds was settling claims in his capacity as “heir and as representative of the Estate.” The agreement specifically allocated $2.75 million to be paid “for the benefit of the Estate of Khaleel Reynolds.” These explicit statements demonstrated that the parties intended this portion of the settlement to resolve estate claims.
When a settlement agreement explicitly states certain funds are paid “for the benefit of the Estate,” the funds constitute estate property. The administrator does not need to prove anything beyond showing the agreement’s plain language and showing she has the authority to recover estate assets.
The Takeaway
Texas probate law governs who can settle claims belonging to an estate. As this case shows, only a court-appointed administrator has the authority to settle survival claims or collect settlement proceeds for the estate’s benefit. When someone without authority purports to settle estate claims and receives settlement funds designated for the estate, the funds remain estate property subject to the administrator’s right of recovery. Settlement agreements that explicitly state certain funds are paid “for the benefit of the Estate” will likely create estate property regardless of who actually receives the money. Later attempts to recharacterize the settlement will not defeat the administrator’s recovery rights when the original agreement’s plain language demonstrates the parties’ initial intent.
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Disclaimer
The content of this website is for informational purposes only and should not be construed as legal advice. The information presented may not apply to your situation and should not be acted upon without consulting a qualified probate attorney. We encourage you to seek the advice of a competent attorney with any legal questions you may have.
