Ancillary probate is a secondary probate process that occurs when someone owns property in more than one state at the time of their passing. While primary probate is conducted in the state where the deceased resided, ancillary probate may be required for assets located in another state. This complex dual-approach process helps to ensure that in-state and out-of-state assets are properly distributed according to the deceased’s estate plan and/or the laws of intestacy if there is no will, or a will that does exist has not been updated in some time.
Understanding ancillary probate is important for testators planning their estate, beneficiaries awaiting inheritance and estate administrators responsible for managing probate proceedings. Ancillary probate is typically needed when a decedent owns real property, such as land or buildings, outside their home state. It may also be required for other assets, such as vehicles or boats registered in another state.
Why can’t one state manage all assets?
Each state has its own probate laws governing the distribution of assets and the rights of creditors. Since real property – and some other assets that are valuable enough to be used as collateral – is subject to the laws of the state where it is located, a separate probate process must be conducted in that state to handle the transfer of ownership. Ancillary probate helps to ensure that local courts maintain proper jurisdiction over the assets within their state and that state-specific requirements for transferring property are met.
Without ancillary probate, the transfer of out-of-state property might not be legally recognized, leading to complications for beneficiaries and the estate at issue. Additionally, creditors in the state where the property is located may have claims against the estate, which need to be addressed through the ancillary probate process.
When a need for ancillary probate arises, estate administrators must coordinate primary probate proceedings with any ancillary probate process in another state. This may involve hiring local legal counsel in the state where the ancillary probate is taking place to better ensure that all legal requirements are met and that property is properly transferred.
Anticipating and executing ancillary probate are two undeniably complex legal realities. Thankfully, the opportunity to seek personalized guidance and support is available at all times.