Ancillary probate is a process you have to get through when a Connecticut decedent owned property in a different state from their domicile. The costs of these proceedings are often high, but there are a few strategies you can employ to avoid it.
When do you need it and what is it for?
Probate is when a court proves that the last will and testament of the deceased person is valid. The court will also identify any taxes and debts that are owed by the estate.
The probate process starts in the state you’re living when you pass away. But for some property owners, the probate process can’t be finished and you won’t be able to pass on your assets without ancillary probate. You have to go through ancillary probate when someone passes away and they had property in their name located somewhere other than their state of residence.
Don’t forget to factor it into your inheritances
If you’re going to have to go through ancillary probate, make sure not to underestimate the amount of fees you have to pay to courts and lawyers. There are also myriad costs associated with filing that you’ll have to consider.
Because of the costly nature of ancillary probate, it can quickly draw a substantial amount of money from the inheritances you had hoped to pass on to your beneficiaries. And settling an estate is made inevitably trickier when there are multiple proceedings have to be managed.
Avoiding ancillary probate
The three main ways to get around ancillary probate administration are to get a transfer-on-death deed, set it up so you’re not the sole property owner at the time of your passing, or put the property into a trust. Bear in mind that not all states allow you to have a transfer-on-death or TOD deed.