Administering Ancillary Probate Estates in Michigan

The probate process can be daunting, especially when dealing with estates that have property spanning across multiple states. The authority of a Personal Representative (PR) does not automatically extend to out of state property, yet they are tasked with distributing the asset to heirs. At Thompson Legal, our specialized probate attorneys offer comprehensive ancillary estate administration services to personal representatives to ensure assets are properly transferred. 

Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions about ancillary property in your specific case, it’s advisable to speak with an attorney. Contact Thompson Legal to schedule a discovery call with a Michigan probate lawyer.

What is Ancillary Probate?

Also referred to as ancillary estate administration, ancillary probate is a legal process that occurs when a deceased individual owns property, typically real estate, in a state other than their primary residence. For instance, if you lived in Michigan but owned a vacation home in another state like Ohio or Florida, an ancillary probate would be required to administer of that out-of-state property.

Ancillary Probate Proceedings

There are two circumstances in which a PR might face ancillary probate proceedings, either (1) the Michigan Decedent owned out of state property individually, or (2) an out of state Decedent passed away owning Michigan property. For PRs overseeing an estate with property in Michigan, the probate process may be avoidable or expedited if certain conditions are met.

However, if the deceased owned property outside of Michigan, opening ancillary probate in each respective state is typically required. This would require the PR to contact the local probate court in the county where the property is located and present them with your Letters of Authority. The local probate court will then process your documents, and issue you order that comply for that state. This ensures that property transactions are legally binding and no future title issues arise.

Managing Complexity and Liability

Managing real estate matters across multiple states adds layers of complexity to an already confusing probate process. PRs face significant personal liability if they mishandle any aspect of the probate process. Working with experienced estate administration lawyers like those at Thompson Legal can provide invaluable guidance, ensuring a seamless process while safeguarding your rights.

Avoiding Ancillary Probate

While ancillary probate may seem unavoidable, there are strategies to minimize its impact. Jointly owning property with spouses or children, utilizing transfer-on-death deeds, or establishing trusts can help bypass ancillary probate altogether. These proactive measures not only streamline the probate process but also reduce costs and stress for surviving family members.

The Importance of Proper Estate Planning

One common pitfall leading to ancillary probate is the failure to include out-of-state real estate assets in estate plans or wills. Without proper documentation, PRs may find themselves navigating multiple probate proceedings across different states. Thompson Legal emphasizes the importance of comprehensive estate planning to mitigate such complications and ensure smooth asset distribution.

Understanding Probate Laws Across States

Each state has its own set of probate laws and regulations governing real estate transactions. In Michigan, Enhanced Life Estate or “Ladybird Deeds” are honored, but that is only true for a select few states. In other states as well as Michigan, proper estate documentation is crucial for legally transferring property title to real estate. 

Conclusion

Ancillary probate presents unique challenges for PRs handling estates with property across state lines. Failure to properly adhere to ancillary estate requirements may result in expensive title and legal issues later on. Thompson Legal is dedicated to providing comprehensive legal support tailored to each client's needs, ensuring a smooth and efficient probate process. Contact Thompson Legal to speak with a Michigan probate attorney about your ancillary estate questions today. 

This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a probate lawyer about your case Contact Us at (734) 743-1646 to schedule a consultation.