My Estate Plan and My Vacation Property
Does My Vacation Property Need To Be Included In My Estate Plan? Yes! Make sure to include it in your estate plan whether you possess a second home, timeshare, investment property, or any other asset, regardless of where you reside. If you neglect to include these in your estate plan or fail to have one at all, your heirs may run into problems and usually incur costs and hassles associated with going to court to receive these assets.
Due to varying state regulations, your primary dwelling may even be divided in your state house in one way while other assets, such as second homes, timeshares, or other plots of property outside your state, may be divided quite differently. Of course, regardless of where your property is located, having a thorough estate plan gives you power and enables you to choose who will receive it.
Preventing Unnecessary Probate
Your family might need to open a second probate case, known as an ancillary estate, when a property is situated in a state other than the one in which the deceased person resided. The ancillary estate is typically handled by a local attorney, which increases the expense, inconvenience, and time required for your family to settle your affairs. For instance, if you passed away while residing in California but also owned property in Montana, the property in Montana may be subject to ancillary probate.
Whether the deceased had a will or not, probate is the legal procedure that is utilized to change the title of the property after their demise. For families who inherit property in many states, it can be extremely complicated because each state has its own probate laws. Real estate must be probated in the state or nation in which it is located, whereas personal property may be done so in the state where the decedent resided.
But, with careful estate planning, ancillary probate is avoidable. Particularly, ancillary probate can be avoided if the decedent moves the property to his or her revocable trust before passing away. Of course, there are alternatives to a trust that can help you avoid the expenses, delays, and hassles of probate, but each one has drawbacks.
One option is by having your spouse or another person included on the property’s title as joint owners. To avoid probate and automatically pass to the survivor, the property must be titled in a specific way. But, if you name a child as a joint owner, for example, this may make refinancing challenging and may also result in more taxes being owed. Your heirs will most likely save money, time, and difficulties by creating a revocable trust.
Bottom Line
Because they differ from state to state, intestacy laws can be difficult to understand. A well-thought-out estate plan also helps you avoid needless probate fees in every state where you own real estate. With the assistance of an experienced estate lawyer, you may successfully prevent pointless hassles and make things as simple as possible for your heirs when it comes to settling your affairs.
We’re Here to Help
Never forget to disclose to your estate planning professional the location and worth of any item you own, regardless of its size or value. This is due to the fact that all of your property (real and personal) must be covered in order to adequately safeguard your family and valuables. Contact Hudack Law today at (877) 314-4309 Toll-free, please visit areas of service (open link in a new tab) or hudacklaw.com (open link in a new tab).