Out of State Considerations
There are some out of state considerations for estate planning and probate. Let’s dive into these.
If the person you desire to have as your executor of your estate is not a resident of Ohio, then you must have a will to nominate that person as the executor. Under Ohio law, a non-resident of the state of Ohio may not administer the estate of a person who dies without a will. There are not any exceptions to this rule. If you live in Ohio, and you want your brother who lives in South Carolina to be the executor of your estate, you need a will to indicate that desire.
Probate courts in the state of Ohio only have jurisdiction over property that is inside the state’s borders. If a resident of the state of Ohio dies while owning property that is located out of state, there may need to be what is called an ancillary probate administration for the property in the other state. This could mean there is additional time an expense associated with probate because it may require a separate probate court proceeding. That court proceeding will need to be handled by an attorney who is licensed in the out of state jurisdiction. There may be ways to avoid an additional probate administration in the out of state location. This is why it is important to tell your Ohio attorney about your out of state property when you are setting up your estate plan.
There may also be some tax considerations when beneficiaries who live outside of Ohio inherit money from someone who dies while a resident of Ohio. There are two types of taxes that occur after someone has died—estate taxes and inheritance taxes. An estate tax is a tax that is paid by the estate. An inheritance tax is paid by those who actually inherit the assets. The United States has a Federal Estate Tax, but there are a large portion of estates that will not be subject to this tax because estates must be worth several million before they are subject to tax. Ohio does not currently have an estate or inheritance tax in place. There are six states, including two that border Ohio, that currently have an inheritance tax in place.
If some of your potential beneficiaries live in a jurisdiction that has an inheritance tax, it is important to consider this tax as part of your planning. Contact me to develop a comprehensive estate plan.