I own property in North Carolina and New York, what should I include in my estate plan?
Many New Yorkers relocate or retire to North Carolina and choose to keep their home in New York for extended family, a summer residence or rental income. Sometimes individuals choose to keep an out-of-state home to eventually leave it as an inheritance to a loved one. Whatever your reasons may be for owning real estate in another state, special planning is advisable.
Out-of-state real property owned in a decedent’s own name generally requires a probate proceeding where it is located, regardless of what the Will provides. This means additional costs and delay in either selling the property or transferring it to the beneficiaries.
When preparing an estate plan for individuals who own properties in multiple states, an estate planning attorney will need to address the laws of each state in which you own real property and recommend ways to avoid probate and local estate or inheritance tax, if possible. An estate plan that includes real property titles held in trusts or LLCs can provide these benefits.
Using a trust or LLC for property ownership allows beneficiaries to avoid lengthy and expensive probates in multiple states. There also can be certain State estate tax benefits. North Carolina’s estate tax was repealed in 2013, but New York’s estate tax exemption remains at $1 million. A comprehensive estate plan can help minimize taxes for beneficiaries.
Does your Will appoint a guardian in a state different from where your dependents reside? Learn about issues with New York guardianship recognizing out-of-state guardians.