Many people seek to avoid probate because it has high fees, takes a long time, and is a public process (which means that everyone has access to your personal financial and beneficiary information.) Ancillary probate means that you have to go through probate in two or more states. That’s double the trouble!
When is ancillary probate required?
If you die with over $150,000 in gross (not net) assets in your individual name, that don’t have a beneficiary designation, probate for those assets is guaranteed. If you live in California, most of your assets will probably be within the state.
However, if you die with assets titled in your name in states, other than California, ancillary probate is required. Assets that may be sited in another state include real property such as a vacation house; bank accounts in banks in other states; oil, mineral, and gas rights; horses or other livestock; cars; boats; or airplanes.
What’s the difference between primary probate and ancillary probate?
If you reside and die in California, primary probate will be in California.
If you, in addition, own property in another state, ancillary probate will be in that other state.
That’s at least two probates. If you own property in three states, you’ll have three probates. If you own property in four states, you’ll have four probates; and, so on.
Why are ancillary probates to be avoided?
If you have two or more probates, you are dealing with:
- Laws of two or more different states because state laws vary
- Differing intestacy laws, if you die without a will; meaning that there could be different beneficiaries for different assets
- Hiring two or more probate attorneys, because lawyers are licensed by state
- Dealing with probate courts in two or more states
- Paying double or more accounting fees
How can ancillary probate be avoided?
It is absolutely possible to avoid ancillary probates. Consult with a qualified estate planning attorney who will likely suggest setting up a revocable living trust. A trust has many benefits; and, probate avoidance is among them.
As a California resident, you just need one, California sited trust, and all of your assets can be funded into the trust. This means that the title of the asset will be held by the trust, not by you in your individual name. A fully funded revocable living trust should avoid probate in all fifty states.
If you have any questions, please feel free to call our office at 858-792-5988 for a consultation.