It is not uncommon for people to own assets in other jurisdictions, including regions or states. This is because many people are wealthy enough to reside in different jurisdictions in their lifetime. Many people also take advantage of business opportunities in these jurisdictions, meaning that they end up setting up their assets in these areas.
With work and family being different, you will find some spouses opting to work in a different state and see their families in other states periodically.
Jurisdictions Have Different Laws
The existence of different laws in these jurisdictions has a lot of impact on the succession plan. You need to have the right legal counsel to assist you to make the right decisions in these varying jurisdictions.
The estate planning lawyer that you choose needs to have experience and knowledge in the jurisdiction where your estate lies. They need to understand and interpret the different laws that regard conflict resolution and the requirements for the various tools of the estate plan.
Each state where the property is located falls under a different jurisdiction, and this means that it can lead to problems, for instance, determining where to obtain probate. A few states have similar rules, but you need to make sure you are sure what to expect.
Issues usually arise when the property is outside the state, or the country. This can bring up a lot of issues. Ley is look at the various concepts you need to consider when planning your assets.
Know the Location of the Property
You need to understand the stand of the state when it comes to the location of the property. In most cases:
- Land and land leases are considered to be in the jurisdiction where the land is found.
- Shares and stocks are aid to be in the state where the company is incorporated.
- Personal items are determined to be in the state where they are found at time of death.
The property that you have in the other state is categorized as movable or immovable. The best example of immovable property is land. You cannot shift land to another state, it remains in the state of origin. Movable assets include cars and furniture.
The laws that regard immovable assets are handled according to the law where this property is located. Movable property can be handled in the state where the person originates from, though this might be complicated as well.
To determine which category each asset falls, talk to an expert estate planning attorney today.
Creating the Right Will
When coming up with a will, you need to put in mind where you are and where the property is.
In all cases, the will has to be valid for it to be applicable. Make sure you follow the requirements depending on the state for it to be admissible in a court of law. Across all states, the will has to be properly signed and have witnesses.
For immovable, the will be determined by the law of the state where the property is situated. The validity of the will is also dependent on the ability of the will to allow the property to be disposed.
Claims against Your Estate
The law of the state will have a legislation which allows a person to contest the will. In some cases, issues will arise whereby assets are outside a certain state and a person lays claim on the estate. In such a case, the beneficiaries can work with their estate planning lawyer to help them handle the case through another attorney in the other state.
With assets spread across different states, it might be a good plan to come up with separate wills for each state to reduce the cases.
When you have different wills, you need to take care so that you update them as required, and you also let your family know that you have different wills for the properties.
Distribution of the AssetsAnother plan that can reduce the claims against property in other areas is to dispose of the assets in external states before passing on, and then repatriate the proceeds to the current state. However, due to little time and taxation issues, this might not be as easy as it sounds.
In ClosingIt is not uncommon for people to own assets out of their jurisdiction, but this shouldn’t stop you from coming up with the best estate plan for your needs. Make sure you work with the right estate planning lawyer to make things easier for you.