As society becomes increasingly mobile there are a rising number of clients that have assets spread across different states. It is important to be aware of inconsistencies in inheritance and estate taxes between the different states. A prudent client should also be aware of any local transfer taxes that might exist. Clients may also need to have multiple health care directives since health care proxies are state specific. Ancillary probate is a major issue for people with assets in different states as people often have to retain attorneys in each state where the probate process is done. One way to avoid ancillary probate is to put the property existing in different states into a revocable trust or an LLC.
See Allen Falke, Estate Planning Headaches to Avoid When Client’s Assets Span State Lines, Financial Planning, September 15, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
