Gifting Property Located in Another State

The picture shows the former residence of French singer Charles Trenet who died in 2001 at 87 years old, in Antibes, Southern France, on November 30, 2012. ( Jean Christophe MAGNENET/AFP/Getty Images).

If you own personal property that is physically located in another state, such as jewelry, furniture, collections, etc. the administrator of your estate can easily and legally transport these items across state lines.

The state where the personal property is located does not have an interest in the administration of tangible personal property.

However, real property, such as a house, business, or some other bricks and mortar building that you own, cannot be transported across state lines, therefore, the other state does have an interest in the administration of it.

To ensure that the proper recipient(s) receive title to real estate located in another state, an ancillary probate process is generally required.

For example, if the decedent has a Will and lived in New York at the time of death, but owned real estate in New Jersey, the adminstrator would have to submit the Will to probate in New York for the distribution of all property located in that state. In addition, the Will should be submitted to probate in New Jersey in order to transfer title of the real estate to the recipient.

If there are no issues regarding who the recipient is, the administrator may have the option to file copies of letters of appointment and/or official bond with the clerk of the surrogate court and then record the deed.

Either way, documents will have to be filed and approved.

If there are no problems, the real estate will pass directly from the decedent to the beneficiary. Under New Jersey law, the recipient will have to pay inheritance tax if the value of the property is greater than $25,000 and if the recipient is not a Class A relative (i.e. wife, children, parents, grandparents, and grandchildren).

Fortunately, the decedent’s estate does not have to pay New Jersey estate taxes since the decedent was not a resident of New Jersey at the time of death.

Most states do not require inheritance taxes on property transfers, so check your local state laws or contact an attorney for assistance.

Information contained in this article is not intended to be legal advice nor applicable to all situations. For legal assistance, contact an attorney in your state of residence. You can visit Arleen’s website at arleenrichards-law.info .

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