Introduction
When it comes to estate planning and probate, we often focus on the assets within our home state. But what happens when you own property across state lines? Enter ancillary probate, a legal process that ensures the proper distribution of out-of-state assets. In this article, we’ll explore what ancillary probate is, why it matters, and how you can navigate it effectively.
What Is Ancillary Probate?
Ancillary probate refers to the legal proceedings that occur when a person passes away and owns property in multiple states. It’s an additional layer of probate that complements the primary probate process in the home state of the decedent.
Imagine a Vermont resident who also owns a charming beach house in Florida. When the Vermont resident passes away, Vermont’s probate court has jurisdiction over the Vermont property, but not the beach house in Florida. Ancillary probate must be initiated in Florida in order to properly distribute the beach house in accordance with the will.
Avoiding Ancillary Probate
While ancillary probate serves an essential purpose, it is an extra step along the probate path for an executor to take in order to properly administer the estate. Each state has a different set of rules and requirements throughout the probate process. Some choose to implement strategies to minimize or bypass the extra step of ancillary probate. Two common methods include the following:
- Trusts: Establishing an irrevocable trust allows you to transfer ownership of assets without going through probate (whether primary or ancillary). The trust becomes the legal owner, and your beneficiaries receive the benefits according to your wishes.
- Joint Ownership: Co-owning property can also help avoid ancillary probate. When one owner passes away, the surviving owner automatically assumes full ownership. Common forms of joint ownership include joint tenancy with right of survivorship and tenancy by the Aentirety.
Conclusion
Ancillary probate is an important estate planning consideration for those who own property in multiple states. The process does not need to be cumbersome, however it can be an extra step that some may rather avoid. With proper planning, ancillary probate can be avoided. If this is an issue that concerns you, we are happy to talk about it with you at Caldwell Law.