How Does Out-of-State Real Property Differ From Other Assets in an Estate Plan?

Ownership of most assets in your estate, such as bank accounts, vehicles, and personal belongings, can generally be transferred according to the terms of your New York Will. Typically, the primary requirement to distribute these assets is completing the probate process in your home state. But out-of-state real estate is different. Whether it is a vacation home in Florida or an international property, real estate is usually governed by the laws of the specific jurisdiction where the land is located. For homeowners in Long Island, from the North Shore to the Hamptons, possessing property outside of New York requires a specific legal strategy to ensure those assets reach your intended heirs without unnecessary hurdles.

Real property is considered “immovable,” meaning the local courts where the property sits have the final say over its transfer. This jurisdictional divide often catches Nassau and Suffolk County families by surprise, leading to multiple court proceedings and conflicting legal requirements. Managing these assets requires a proactive strategy that accounts for both New York’s requirements and the specific statutes of the other location.

Can a New York Will Control Out-of-State or International Properties?

If you live in New York but own real estate elsewhere, that property is likely subject to the specific probate and inheritance laws of that location. While a New York Will is generally recognized as valid in other U.S. states, your heirs will likely still need to file “ancillary probate” proceedings. This is a secondary legal process in the state where the property is located, running alongside the New York probate. This often results in double the filing fees, additional attorney costs, and significant delays for your family.

International properties present even greater challenges. While some regions follow the Uniform International Wills Act, many do not. Because of the vast differences in estate laws, a New York Will might not be accepted by a foreign court. In such cases, the property could be distributed according to that country’s “intestacy” laws, meaning the government decides who inherits, regardless of your wishes. Common international legal issues include:

• Forced Heirship: Locations like Japan and Puerto Rico have “forced heirship” rules that prevent you from disinheriting certain relatives, even with a valid Will.
• Specific State Restrictions: Even within the U.S., states like Louisiana have unique heirship laws that can restrict how you leave property to family members (Louisiana Civil Code Art. 1493).
• Mandatory Registration: As of 2024, countries like Japan have implemented mandatory inheritance registration for real estate, with strict deadlines and potential fines for non-compliance.

Addressing Jurisdictional Issues in Your Estate Plan

For individuals with a diverse property portfolio, a one-size-fits-all Will is rarely enough. To minimize the expense and time your loved ones must spend in court, you should consider more robust strategies. Your legal counsel can help you determine which of the following approaches best protects your out-of-state interests.

The Use of Multiple Wills

One strategy is creating separate Wills for different jurisdictions. This ensures that each document meets the specific legal formalities of the country or state where the property is located. But this approach is complex. Each Will must be carefully drafted so it does not accidentally revoke the others. You will also need to ensure that the executors in each location are aware of one another and can coordinate the settlement of the entire estate efficiently.

Utilizing Trusts to Avoid Ancillary Probate

Placing out-of-state property into a Trust is often the most effective way to avoid the jurisdictional “tug-of-war.” When a Trust owns the property, the asset technically no longer belongs to you individually. This removes it from the probate process entirely. Upon your passing, the successor trustee can transfer the property or manage it for your beneficiaries without waiting for a court’s permission in another state. While Trusts involve upfront setup costs, they frequently save Long Island families thousands of dollars by bypassing ancillary probate and simplifying tax planning.

How to Avoid Confusion Surrounding Your Domicile

Owning property in multiple states can lead to confusion regarding your “domicile.” In New York, domicile is defined by SCPA § 103(15) as the fixed, permanent, and principal home to which you always intend to return. Your domicile is important because it determines which state’s laws govern your movable assets (like cash and stocks) and where your primary estate taxes will be filed.

If you split your time between a home in Long Island and a second residence in a state like Florida or Arizona, tax authorities may challenge your domicile to claim estate taxes. For 2026, the New York estate tax exclusion is $7,350,000 (NYS Dept. of Taxation). If your estate exceeds this amount, proving your domicile becomes a critical financial issue. Clear documentation of your intent, such as where you vote, maintain your driver’s license, and perform your banking, can help prevent these disputes.

How Our Long Island Firm Can Assist You

Out-of-state property is a significant part of your family’s wealth, but without a specific plan, it can become a legal burden for your heirs. Whether you own a rental property in another state or an ancestral home abroad, the team at Davidov Law Group can help you navigate these complex jurisdictional rules. We focus on creating customized estate plans that account for the nuances of New York life estate law and international property requirements. Contact us today at (516) 253-1366 to ensure your global assets are protected and your legacy is preserved for the next generation.