Estate planning requires careful consideration to ensure your wishes are followed upon your death. Please continue reading as we explore how owning property in multiple states is handled in an estate plan and how a knowledgeable Washtenaw County Estate Planning Attorney can help safeguard your interests.
How is Owning Property in Multiple States Handled in an Estate Plan?
When you die, your property will be distributed among your heirs according to the laws of the state where you reside and the terms you have outlined in your will. This process, known as probate, can be complex and time-consuming, as it involves identifying and valuing your assets, paying off any outstanding debts and taxes, and distributing the remaining assets to your beneficiaries as dictated in your will. If you die without a will, your assets will be distributed according to Michigan’s intestacy laws. The complexity of the probate process can escalate significantly if you own property in multiple states.
While a will can cover property in multiple states, it’s important to understand that your will may need to be probated in each state where you owned property, and each state may have different probate laws and procedures. It’s crucial to ensure that the will is properly executed per the laws of the state where the deceased person resided at the time of their death. If the will is not properly executed, it may be deemed invalid, and the deceased person’s assets may not be distributed in accordance with their final wishes.
You should note that the United States Constitution requires every state to give “full faith and credit” to the laws of other states. Essentially, this means that a will validly made in one state should be accepted as valid by every other state.
What is Ancillary Probate?
As mentioned, the process of transferring property will likely involve separate probate proceedings in each state where you own real estate. Keep in mind that each state has jurisdiction over property within its borders. This separate probate proceeding is referred to as ancillary probate. The other state will generally validate the original probate proceedings in the decedent’s home state and then handle the specific assets, ensuring they are legally transferred to the rightful beneficiary according to that state’s laws. For example, a person may reside in New York but own a vacation home in Florida. To avoid ancillary probate, you should consider establishing a trust or joint ownership with right of survivorship.
If you own property in multiple states, it’s in your best interest to consult with a qualified estate planning attorney to ensure that your will is properly drafted and executed and that your assets will be distributed according to your wishes. At Collis, Griffor & Hendra, we are prepared to discuss strategies for navigating the probate process. Connect with our firm today for guidance and skilled representation.