How Can I Address Out-Of-State Assets in My Maryland Estate Plan?

 Posted on January 13, 2025 in Estate Planning

Many people tend to have assets like their home, other property, and bank accounts in the state where they live. When it comes time to create an estate plan, this simplifies matters, particularly because states have different guidelines, rules, and regulations for estate planning matters.

If you live in Maryland but own assets in other states, you might be confused about how to address them in your estate plan. It is important to handle these matters properly to prevent unnecessary stress and expenses for your beneficiaries and loved ones after you pass away. A knowledgeable Maryland estate planning lawyer can help explain your options and advise you as you make informed decisions.

What Makes Out-of-State Assets Different?

When you pass away, your estate will have to go through the probate process in any state where you own property. If you live in Maryland but have a summer home in Colorado, for example, your heirs need to go through a separate probate process in Colorado in addition to the regular probate process in Maryland. This is known as ancillary probate, and in addition to the added time and expenses, it can also be confusing when the laws are different in the various states where you have property.

While you could have a variety of assets, the most common types of out-of-state assets that might need special attention include real estate located in other states, bank accounts or investments in other states, and cars, boats, motorcycles, or any other vehicles registered in other states. 

What Can I Do to Simplify the Process?

Owning assets in other states can present some challenges for your estate planning, but at the end of the day, these are things that you want to leave behind to your heirs. There are some strategies recommended for simplifying the process of addressing out-of-state assets, including:

Revocable Living Trust

A revocable living trust lets you transfer ownership of your assets in your lifetime so they can be distributed according to your wishes without needing probate. Out-of-state assets get placed into your trust to be handled by your trustee without needing to go through ancillary probate in other states.

Detailed Will

Your will can include specific instructions about how your out-of-state assets should be handled when the time comes. This will not eliminate the need for the ancillary probate process in the other state, but you can designate a personal representative in your will who will be responsible for the process. 

Joint Ownership or Beneficiary Designations

You might want to consider joint ownership for some types of assets, including real estate and bank accounts. If you arrange for the right of survivorship or naming beneficiaries directly, your assets can be transferred directly to your surviving co-owner or beneficiary, outside of probate. This can avoid some of the complications of ancillary probate.

Schedule a Free Consultation with a Silver Spring, MD Estate Planning Attorney

If you own assets outside Maryland, it is important to make sure that they are addressed properly in your estate plans. Otherwise, your beneficiaries might have to deal with added stress and expenses when they are already grieving. The qualified Rockville, MD estate planning lawyer at The Eleff Law Group has experience handling complicated estates and helping clients navigate confusing processes smoothly. We are dedicated to your peace of mind, so call us at 301-857-1990 to schedule a free consultation.