Do you own a second home or vacation property? Is it located in a state other than the state in which you live? Without the proper planning, dealing with the home or property upon your death can become a very expensive matter.

Ancillary Probate

Often times, a probate proceeding is required in order to deal with the disposition of real estate and other assets upon a person’s death. If the deceased person owned real estate in more than one state, a probate proceeding may be required in each state where such properties are located. Often times, a probate must be started in a person’s home state, (where he or she resided), and an additional probate proceeding, known as an ancillary probate, must be started in each of the other states where the person owned real estate. This process can result in the need to hire an attorney in each state where a probate proceeding is required, potentially resulting in significant and unexpected legal fees and expenses.

How to Avoid Ancillary Probate

The good news is, probate, including ancillary probate, can often be avoided with proper Estate Planning. One way to avoid probate for real estate is for the owner to record a Transfer on Death (TOD) Deed against the property, which designates one or more individuals to receive the property upon the owner’s death. Upon the owner’s death, the real estate passes to the designated beneficiary free of any probate proceeding, provided that the beneficiary has survived the owner. Not all states allow TOD Deeds, and such deeds are not ideal for all situations. Therefore, it’s important to consult with a qualified Estate Planning Attorney to determine if a TOD Deed is a good plan for you.

Another way to avoid probate for your real estate is to create a Revocable Living Trust. Assets held in a revocable trust pass free of probate upon death, and the trust can offer a great deal of management and protection of the assets for the beneficiaries after the owner’s death. And, a trust can own several different properties located in different states, thereby avoiding the need for multiple ancillary probate proceedings upon the owner’s death. Trusts can be a valuable estate planning tool for many types of assets, not just for real estate. To learn more about revocable living trusts, and how to establish one with a reputable estate planning attorney, please check out my recent post.

Don’t fail to Plan

So many people today own a second home, or investment real estate. And often times these properties can be in two or more different states. The planning tools mentioned in this article can be simple and inexpensive ways to avoid probate and protect your assets. Yet, most people fail to explore their options, and their family members or heirs pay the price in the end. Don’t fail to plan. Contact Kosa Law Office today to speak with a reputable estate planning attorney.