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What is an Ancillary Probate or Ancillary Administration Proceeding?

When a person passes away with real property in multiple states, an ancillary proceeding may be necessary. The primary probate proceeding (if the person passed away with a Last Will & Testament) or primary administration proceeding (if the person passed away without a Last Will & Testament) is commenced in the State and County where the person was domiciled prior to passing away.  Once the Executor or Administrator is given legal authority from the court, that Executor or Administrator can start an Ancillary Probate or Administration proceeding in the State where the decedent owned real property but was not his primary residence.

Daredevil Dan Example:

Daredevil Dan owns a brownstone in Park Slope, Brooklyn and a house in Scottsdale, Arizona which he snowbirds to during the cold Brooklyn winters.  He is domiciled in Park Slope and he spends the majority of the year at his brownstone.  Daredevil Dan went to grab a candy bar from a vending machine, the candy bar got stuck and when Daredevil Dan shook the machine, the machine fell on him, and that was the end of Daredevil Dan.  Daredevil Dan went to Ira K. Miller & Associates and created a will that left everything equally to his two friends, Don and Meg.  He made Don the executor of his will.  Don would have to start a Probate proceeding in Kings County because that is where Daredevil Dan was domiciled.  Following the grant of Letters Testamentary by the Kings County Surrogates Court, Don would then have to start an ancillary probate proceeding in Arizona to gain authority to sell or transfer the Scottsdale home.

Probate proceedings and ancillary probate proceedings can end up being very costly due to filing fees and attorney fees. Both a probate proceeding and ancillary probate proceeding can be avoided with the use of a revocable trust.

Daredevil Dan Trust Example:

The facts in the above Daredevil Dan Example are the same, however, instead of creating a will at Ira K. Miller & Associates, Daredevil Dan created a Revocable Living Trust.  He deeded both his property in Park Slope, Brooklyn and his property in Scottsdale, Arizona into the trust.  The trust terms had Daredevil Dan as the trustee of the trust and upon his passing his friend Don would take over as trustee. The trust terms stated that upon Daredevil Dan’s passing both properties in Arizona and New York would be sold and the proceeds split between Don and Meg. Following Daredevil Dan’s vending machine accident, Don would have legal authority to sell both properties as trustee and would avoid  probate in New York and ancillary probate in Arizona.

If you own real property in multiple states, a trust is a great way to avoid probate and ancillary probate. Contact Ira K. Miller & Associates for any questions you may have regarding trusts, probate, and ancillary probate.

What Happens if I Die without a Will?

What happens if I die without a Will featuring Daredevil Dan

If a person dies without leaving a Last Will & Testament, that person has died intestate.  Intestacy is the default rules in New York has as to who would inherit your property if you did not have a Will.  It is codified in EPTL 4-1.1.  The relatives who are entitled to a share of the decedent’s estate are called distributees.

 

Daredevil Dan Example:

Daredevil Dan got caught up in this Pokémon Go craze.  While he was trying to catch a Pikachu in Bushwick, Brooklyn he accidentally stepped in front of the B52 bus and that was the end of Daredevil Dan.    Daredevil Dan never made it to Ira K. Miller & Associates for any estate planning and died without a Last Will & Testament.  The intestacy laws of New York would determine who inherited Daredevil Dan’s estate.

 

If Daredevil Dan had:
A spouse and no children Spouse inherits everything
children* but no spouse His children would inherit everything
spouse and children* His spouse would inherit the first $50,000 of Daredevil Dan’s estate plus half of the balance. His children* would inherit everything else.
parents but no spouse and no children* His parents would inherit everything
siblings (brothers or sisters) but no spouse, children*, or parents the siblings inherit everything
* If a child dies prior to Daredevil Dan and had children of their own, then Daredevil Dan would have grandchildren. Those grandchildren would step into the Daredevil Dan’s child’s place and inherit in place of the child.

Example 1:

Daredevil Dan was married to Brittany and they did not have any children.  Brittany would inherit Daredevil Dan’s entire estate

 

Example 2:

Daredevil Dan was not married but had three children, Anna, Betty, and Charlie.  Each child would be entitled to 1/3 of Daredevil Dan’s estate.

Example 3:

Daredevil Dan was not married but had three children, Anna, Betty, and Charlie. Betty passed away two years before Daredevil Dan and had two children, Devin and Emma (Daredevil Dan’s Grandchildren). Under this scenario Anna would inherit (1/3), Charlie would inherit (1/3) and Devin and Emma would inherit Betty’s 1/3 share.  Therefore, Devin would inherit 1/6 (.5 of the 1/3) of Daredevil Dan’s estate and Emma would inherit 1/6 of Daredevil Dan’s estate.

Example 4:

Daredevil Dan was married to Brittany and had three children, Anna, Betty and Charlie.  Daredevil Dan died with $170,000 in his bank account which he received from his stunt of swimming in the Gowanus Canal.

In this scenario Brittany would inherit the first $50,000 and would receive ½ of the remainder. The remainder = $120,000 (170,000-50,000=120,000) (1/2 of $120,000 is $60,000). Brittany would inherit $110,000 of Daredevil Dan’s estate.

Anna, Betty and Charlie would each receive $20,000 (1/3 of $60,000).

 

Example 5:

Daredevil Dan was married to Brittany and had three children, Anna, Betty and Charlie.  Betty passed away two years before Daredevil Dan and had two children, Devin and Emma (Daredevil Dan’s Grandchildren).  Daredevil Dan died with $170,000 in his bank account which he received from his stunt of swimming in the Gowanus Canal.

In this scenario Brittany would inherit the first $50,000 and would receive ½ of the remainder. The remainder = $120,000 (170,000-50,000=120,000) (1/2 of $120,000 is $60,000). Brittany would inherit $110,000 of Daredevil Dan’s estate.

Anna and Charlie would each receive $20,000 (1/3 of $60,000).

Devin and Emma would each receive $10,000 (1/2 of the $20,000 that Betty would have received if she were living)

 

 

Do not let New York intestacy laws determine who inherits your money. For more information about different scenarios or Estate Planning, please contact Ira K. Miller & Associates