Estate Planning for Out-of-State Assets
March 16, 2020
If you are involved in the estate planning process, take caution not to overlook out-of-state property and other assets. Many people own property outside of New York and want to know how to account for their timeshare or vacation home in their estate. Because certain assets are governed by the state where they are located, your estate plan can become complicated. However, if you are armed with the information below and the guidance of an experienced Brooklyn elder law lawyer, you will have the peace of mind that comes from knowing your out-of-state assets are protected.
Depending on the type of assets in question and where they are located, a variety of different estate planning scenarios may apply:
- Will: Prepare your will to account for the disbursement of movable out-of-state assets, such as art, jewelry, furniture, and collectibles accordingly to New York state guidelines, provided this is your long-term home.
- Multiple wills: If your out-of-state assets are more significant, wills in your home state and the state where the other property is held may be necessary. We draft each will according to the laws and guidelines in each jurisdiction, especially where death taxes are concerned.
- Trust: Clients who own land or real estate outside of New York may also benefit from a trust. Including a second home in a trust eliminates the need to for probate in both states, saving time and money. Your trust designates a trusted friend or family member in the other state to manage that asset according to your wishes.
What Heirs Need to Know
Because people are much more transitory than they were decades ago, it is common for heirs who live in a different city or country than their parents to inherit out-of-state assets. Assets located in the state where the deceased person lived will go through probate in that state. Additional assets outside of the state where they lived go through a secondary process called ancillary probate. For heirs, this can be a complicated and time-consuming process.
If your loved one is still involved in the estate planning process, remind them they can avoid multiple probates by creating a simple living trust. If they move their property to this trust, they can act as both the trustee and beneficiary while they are alive and amend or revoke it at any time if they choose. Upon their passing, a successor trustee or heir manages and distributes assets according to the trust without any need for court involvement.
Brooklyn Elder Law Lawyers at Korsinsky & Klein, LLP Help Clients Protect Out-of-State Assets
Decades of handling complex estate planning cases gives Brooklyn elder law lawyers at Korsinsky & Klein, LLP the experience and hindsight to expertly manage your estate. We protect your assets to give you and your heirs valuable peace of mind. To learn more, call us at 212-495-8133 or use the online contact form to schedule an initial consultation. Located in Brooklyn, Manhattan, and Lakewood, New Jersey, we represent clients throughout New York and New Jersey.