Handling Out-of-State Assets in Arizona Probate

When an Arizona resident who owns property in other states passes away, finalizing their affairs will require probate proceedings in any place where their property is located. Arizona courts have no authority to order the disposition of property located in other states. These circumstances can raise considerable confusion during estate administration without proper planning. If you are developing an estate plan, an experienced Arizona probate lawyer can explain how out-of-state probate could affect the cost and time it takes to settle your estate.

What Are Out-of-State Assets in Arizona Probate?

In an Arizona probate case, out-of-state assets include any real and personal property that the decedent owned at the time of their death. Examples include:

• Vacation homes
• Rental properties
• Business interests in another state
• Vehicles registered and titled in another state
• Trusts administered according to the laws of another state
• Financial and investment accounts

A personal representative for an estate with out-of-state assets must open a separate case in the state where the property is located. This process is called ancillary probate.

Understanding Ancillary Probate in Arizona

When a non-resident passes away while owning property in the state, the personal representative of the decedent’s estate may open an ancillary probate in Arizona by filing a petition with the court in the county where the decedent owned property. The petition should include certified copies of the personal representative’s appointment in the primary probate proceeding in the decedent’s home state and copies of any official bond the personal representative has filed.

Ancillary probate can add costs and time to the estate administration process, but there are estate planning tools that can help plan around it, reducing hassles later.

Incorporating Out-of-State Assets into Your Arizona Estate Plan

If you own assets in multiple states, you may develop an estate plan that reduces or eliminates the need for ancillary probate proceedings. For example, you may consider placing out-of-state assets into a revocable trust that can distribute those assets to beneficiaries without the need for probate.

Alternatively, for assets like real estate, you may retitle them into joint tenancies with right of survivorship, allowing co-owners to immediately assume a deceased co-owner’s interest upon their death.

Additionally, it may be possible to use a transfer-on-death deed (TOD) naming a beneficiary to inherit your property upon your death. This tool could avoid probate, but a handful of states do not currently permit TOD deeds, meaning you will need to talk with an attorney about other options that could accomplish your goals.

Contact Our Arizona Probate Attorneys

If you own out-of-state assets and want to simplify the probate process for your personal representative and heirs, talk to the experienced estate planning and probate attorneys at Pennington Law, PLLC today. We can discuss options so that all your property is accounted for in a comprehensive estate plan. By planning strategically, you can expedite asset distribution and ease property transfers to make settling your affairs as seamless as possible.

Call or contact us today for a free consultation.