How Do You Handle Out-of-State Property in Michigan Probate Cases?

Sometimes, people pass away owning property in multiple states. As a result, the estate administration process may require an executor or administrator to open ancillary proceedings in each state where a decedent owned property. If your deceased loved one owned property outside of Michigan, your family should understand the process of handling out-of-state property in a probate case.

Understanding Probate for Out-of-State Property

During probate, a personal representative of a decedent’s estate (i.e., the administrator or executor) must oversee the transfer of estate assets to the decedent’s beneficiaries and heirs, subject to the probate court’s supervision. However, because a probate court’s authority only extends to assets located in the state, assets owned by a decedent in other states cannot pass to beneficiaries or heirs through the main probate proceeding. Instead, an administrator or executor must initiate an ancillary probate proceeding to handle those out-of-state assets.

Ancillary Probate Explained

When a decedent’s estate includes assets located in states other than where the decedent resided when they passed away, the executor or administrator of the estate must open ancillary probate proceedings in each state where the decedent owned property. An ancillary probate acts as a miniature version of the main probate proceeding focused on handling the disposition of assets that a decedent owned in that state. Estate administration requires ancillary probate for out-of-state assets because the courts in the state where the decedent passed away have no legal authority over property located in other states. Instead, the probate court in each state where the decedent owned property must supervise the administration of that property.

Ancillary probates work alongside a main probate proceeding. In most cases, a family cannot open an ancillary probate until they’ve started the main probate proceeding in the state where the decedent resided. The administrator or executor appointed to oversee the main probate proceeding usually serves in the same role in each ancillary probate.

Steps to Handle Out-of-State Property in a Michigan Probate Case

The process of probating property located outside of Michigan involves multiple steps:

• First, an administrator or executor must identify the decedent’s property and its location in another state. They also must confirm that the decedent held title to the property. For real property, they should also check the deed and legal description.
• Next, they should contact their Michigan probate attorney to coordinate with local counsel in the state(s) where the decedent left property.
• The administrator or executor can then open the main probate proceeding in Michigan by petitioning for letters testamentary and submitting the decedent’s will (if any) for probate.
• After receiving letters testamentary, they can petition to file ancillary probate proceedings in each state where the decedent owned property.

Tips for Avoiding Complications

Best practices to avoid the need for ancillary probate or to make handling out-of-state assets easier include:

• Place property in other states into revocable trusts, which allow you to pass those assets to beneficiaries after your death without the need to go through probate in another state.
• Deed real estate assets into joint tenancies or tenancies by the entirety to allow ownership to automatically pass to your spouse or other loved ones after your death.
• Use transfer-on-death deeds where permitted to pass assets to beneficiaries.
• Hire local probate counsel to help you navigate different probate procedures and timelines and to advise you on state-specific property laws.

Contact a Probate Attorney Today

If your loved one passed away with property in other states, an attorney can help your family handle those out-of-state assets. Contact Bingham Legal Group PC today for an initial consultation with an experienced estate administration lawyer to learn more about the process of probating property located outside of Michigan.