Ancillary probate is a secondary probate process that may be necessary if a deceased person owned property in a state other than their home state. While regular probate handles the distribution of assets within the decedent’s home state, ancillary probate deals with assets located elsewhere. Ancillary probate is often used, for example, if a Florida resident owns a second home in North Carolina or a Texas resident has mineral rights in Oklahoma.
In both cases, ancillary probate helps to better ensure proper legal transfer of these assets according to the respective state laws.
Why is ancillary probate necessary?
Ancillary probate becomes necessary when:
- A person owns real estate or tangible property in a different state.
- State laws require local probate for property within their jurisdiction.
Without ancillary probate, transferring ownership of out-of-state assets can be legally challenging and may lead to disputes among beneficiaries.
How are ancillary probate and regular probate different?
Regular probate involves validating the will, settling debts, and distributing assets within the decedent’s home state. Ancillary probate, however, focuses on assets located in other states, requiring adherence to local laws and procedures.
How can I avoid ancillary probate?
Avoiding ancillary probate can save time and reduce legal expenses. Consider these strategies:
- Establish a revocable living trust to hold out-of-state property.
- Jointly title property with rights of survivorship.
- Use transfer-on-death deeds where applicable.
These methods streamline asset transfer and minimize the need for ancillary probate.
What if I do not address ancillary probate?
Failing to address ancillary probate can lead to delays in asset distribution to beneficiaries, increased legal expenses due to multiple probate proceedings, and potential disputes among heirs over property rights. Proper planning mitigates these risks and ensures a smoother transition of assets.
Those with an estate that include out-of-state assets are wise to take steps to plan for the transfer of these assets. Proper planning and legal guidance can prevent complications and ensure a seamless asset transfer. Contact us today to discuss your estate planning needs.