Estate Planning | Making a Difference One Family at a Time

//  by 

estate planning insightWe have a Westport, Connecticut, estate planning office, and another location in Glastonbury. A lot of people in these areas have significant resources, and many own property outside of the state.

This raises the question: Can a will address out-of-state property? Let’s take a look at the question from an overview, because the simple answer does not tell the entire story adequately.

Estate Administration

If you use a simple will as your estate plan foundation, you can name an executor to administer your estate. This can be someone you know personally, or you can alternatively use a professional fiduciary, like a bank or a trust company.

Your administrator cannot conduct the business of the estate in a vacuum. The will would be admitted to probate, and the court would supervise the administration process.

Let’s say that you are a Westport resident at the time of your death. The appropriate jurisdiction would be the Westport-Weston Probate Court District. This is where the probate process would unfold for property that is located within the state.

Ancillary Probate

Moving on with our example, if you own a summer home in Nantucket, a second ancillary probate process would be necessary in Massachusetts. This is not an insurmountable situation, but it creates an added complication that will add a very unwelcome dimension.

Probate Pitfalls

A single probate process will come with several drawbacks. First, this is a public proceeding, so the records are available to anyone who goes through the appropriate channels to obtain them. As a result, there is a loss of privacy that can potentially cause hard feelings among interested parties.

Secondly, probate expenses can add up considerably. All of the money that is spent during probate will reduce the value of the estate before it is distributed among the heirs.

Thirdly, there is the time factor. The probate process will take close to a year, even if the situation is straightforward, and no inheritances are distributed during this interim.

All of these negatives are amplified when you add an ancillary probate process in another state into the mix. From a hands-on administration perspective, your executor will have to contend with a completely separate process in an out-of-state location.

What’s the Solution?

There is a simple solution that can eliminate the need for both probate processes. You could use a revocable living trust as the centerpiece of your estate plan instead of a simple will.

A lot of people do not think about trust creation because they assume they lose control of the assets once they fund the trust. This is not the case with this type of trust. In fact, you will be the trustee during your life, so you retain absolute control of the assets.

When you establish the trust, you name a successor trustee. After your death, the successor will take over the role and manage the trust in accordance with your wishes. Additionally, you can give the trustee the power to administer the trust in the event of your incapacity.

What about probate? If you create a living trust to transfer assets after your death, probate is not a factor at all. The court will not be involved in any state, and the trustee can address property held by the trust, regardless of where it is located.

Clearly, if you own out-of-state property, ancillary probate is a major negative, and it can be easily avoided if you utilize a living trust as an asset transfer vehicle.

Schedule a Consultation Today!

You can call us at 860-548-1000 to schedule a consultation at our estate planning office in Glastonbury, CT, and you can use the same number to set up an appointment at our Westport location.

We have a contact form you can use to send us a message, and you are invited to attend one of our complimentary seminars to learn more about this essential process.

Barry D. Horowitz, Estate Planning Attorney
Latest posts by Barry D. Horowitz, Estate Planning Attorney (see all)
Spread the love