Helping You Through Times of Change

How does probate work with out-of-state assets?

On Behalf of | Oct 30, 2024 | Estate Planning

When someone passes away, their estate often goes through a legal process called probate. This process oversees the distribution of the deceased’s assets and the payment of their debts, ensuring that the court handles everything according to the law and the deceased’s wishes.

But what happens when the person owns property in other states, too? This situation can make things more complicated. California has its own probate laws, but other states may have different rules. This means families might need to deal with multiple legal processes in different places.

Differentiating primary and ancillary probate

If a person’s estate goes through probate in a California court, it means California is their state of domicile. This is the state that the person considers their main, permanent home. It’s not just where they lived but rather where they intended to stay long-term.

The domicile is where the main probate process – the primary probate – occurs. It usually deals with the entire estate as long as the assets fall under California’s jurisdiction. However, other states have their own rules for handling property within their borders. An ancillary probate – a secondary probate process in another state – will occur if some of the person’s properties are in other states.

What are the challenges?

While it ensures proper management and distribution of assets according to each state’s laws, having a primary and ancillary probate process often complicates and prolongs the estate settlement process. Here are some common challenges:

  • Dealing with different laws in each state
  • Working with multiple courts at the same time
  • Paying more in legal fees and other costs
  • Sorting out conflicts between state inheritance laws
  • Waiting longer for courts to settle the estate

While these are sometimes unavoidable, planning ahead can help mitigate these challenges. Having a solid estate plan can simplify the probate process and reduce potential conflicts. Setting up a living trust can also help avoid probate altogether for assets placed in the trust.

But if your loved one passed away without a will and has properties in multiple states, an attorney can help you interpret and comply with different state laws, coordinate between primary and ancillary probate courts and handle any disputes that may arise during the probate process.

Multi-state probate doesn’t have to be a daunting task

If you’re dealing with a loved one’s estate that spans across state lines, professional legal assistance can make a world of difference.