Holding property in a state other than the home state is often fruitful, whether it is a recreational property income-generating property or even linked with family history. However, in matters concerning estate planning, such properties come with their challenges. Learn more today about how to ensure your wishes are followed for these cherished assets:

If I Have Real Estate in Another State, Do I Need a Will for That State as Well?

Generally, no. Your primary will, the one you have made at your state of residence, should be sufficient to deal with most assets across the country. However, there are some exceptions:

• Unique Titling: However, if you notice that the title has some other form that does not tally with the conventional title in your state e. g., community property vs. Tenants in common), an ancillary probate may be needed in the other state. This is a simple probate proceeding to deal with a particular asset under the laws of the concerned jurisdiction.
• High-Value Properties: In some states, you automatically enter probate if you own certain assets beyond a specific value, even if you have a main will. For such situations, it is advisable to consult an estate planning attorney in the state of the property.

What are the consequences or risks of not dealing with Out of state property?

If you do not include out-of-state property in your plan, your beneficiaries might face delays and more expenses. Here’s how:

• Probate in Two States: If no prior planning is done, probate may be necessitated both in the resident state and the state where the property is situated. This means double the court fees, attorney costs, and the time it takes for heirs to receive the asset.
• Unintended Heirship Rules: This is the law governing the distribution of property in case of death without a will and each state has its own laws on the matter. If the out-of-state property is not dealt with in the will it may be divided in a manner that is not what you wanted.

Conclusion

Being prepared for the future by planning with out-of-state property helps your family avoid confusion, financial strain, and grief during a challenging time. To achieve your objectives and to guarantee the proper handling of your special property after your death, you need to seek advice from an estate planning lawyer and avoid confusion by applying measures such as labeling or designation.