In Texas, if one spouse dies without a will and also has children, then the property will generally pass this way:
All property owned by the couple is probably community property (anything obtained during the marriage, with a few exceptions). This means one half of everything the couple owns belongs to the surviving spouse. The other half, which belonged to the deceased spouse, would pass according to the intestacy laws, and would go one half to the surviving spouse and 1/2 divided among the children.
There are nuances to the distribution, including a possible right of the spouse to remain in the homestead during his/her life even if the children are entitled to part of it. Because of these details, it's necessary to inventory both the property and the heirs (living children, and children of deceased children) and review the law. If there is enough in the estate that the children intend to take their portion, it may be a good idea to work with an attorney.