Owning property in more than one state can create unexpected legal complications for your loved ones after you pass away. Understanding how the process works can help you plan around it and prevent any issues that may come up.
The basics of ancillary probate
Ancillary probate is a secondary court proceeding required in a state where a deceased person owned property but did have legal residence. This process runs alongside the primary probate case in the decedent’s home state and follows the laws of where the property is located.
So, if you live in another place but own real property in Florida, your estate may need to go through Florida’s probate court in addition to the proceedings in your home jurisdiction. The result is a separate set of court filings, attorney fees and potential delays that your beneficiaries must navigate on top of the primary probate case.
Common assets at risk of a secondary proceeding
The following types of property are more likely to require ancillary probate when you have them in your name:
- Real estate such as vacation homes, rental properties or undeveloped land
- Tangible personal property like vehicles or boats
- Ownership of natural resource rights attached to land in another state
- Timeshares that are structured as actual real estate interests
Many people overlook these assets during the planning process because they focus primarily on property in their home. Even a single piece of out-of-state real estate can be enough to open an ancillary case.
Practical strategies to avoid the extra filing
Various estate planning tools may allow you to transfer out-of-state assets without triggering a second proceeding:
- Placing out-of-state real estate into a revocable living trust
- Titling property as joint tenants with right of survivorship so ownership transfers automatically upon death
- Forming a limited liability company in your home state and transferring out-of-state real property into the entity
No single strategy works for every situation, and each option carries its own legal and tax implications.
A sound plan for your legacy
Aside from the probate process, ancillary also subjects your estate to the laws of another jurisdiction, which may differ from your home jurisdiction on matters like creditor claims or their priority. These differences can produce outcomes that do not align with your original intentions.
Reaching out to an attorney can help you address these matters early on. They can review your documents and help structure your assets to minimize interstate complications.