Legal Definitions - ancillary administration

Ancillary administration refers to a secondary legal process required to manage and distribute a deceased person's assets that are located in a state different from where the person primarily resided at the time of their death. When someone passes away, their estate typically undergoes a primary probate process in their home state (their "domicile"). However, if they owned property, such as real estate or certain financial accounts, in another state, the laws of that second state usually require a separate, supporting probate proceeding to legally transfer ownership of those specific assets. This secondary process, which runs alongside the main probate, is called ancillary administration.

Here are some examples to illustrate:

• Example 1: Vacation Home in a Different State

  Imagine a person who lived their entire adult life in Illinois but owned a vacation condominium in Florida. Upon their death, their primary estate, including their Illinois home and bank accounts, would go through probate in Illinois. However, to legally transfer the ownership of the Florida condominium to their heirs or to sell it, a separate legal proceeding, an ancillary administration, would need to be opened in Florida. This is because Florida law governs real estate located within its borders, and a Florida court must approve the transfer of that specific property.

• Example 2: Investment Account with Out-of-State Situs

  Consider an individual who was a resident of New Jersey but maintained a brokerage investment account with a financial institution whose primary operations and legal "situs" (location for legal purposes) are in Delaware. After the individual's death, the main probate process would occur in New Jersey. However, depending on the specific terms of the account and Delaware's laws, an ancillary administration might be necessary in Delaware to formally access and distribute the funds held in that particular investment account, ensuring compliance with Delaware's regulations for assets within its jurisdiction.

• Example 3: Tangible Personal Property Across State Lines

  Suppose a person lived in Oregon but owned a classic car that they kept stored and registered at a specialized facility in Washington state. When this person passes away, their primary estate would be handled through probate in Oregon. To legally transfer the title of the classic car to an heir or to sell it, an ancillary administration might be required in Washington. This is because the car, as a piece of tangible personal property, is physically located and registered in Washington, making it subject to Washington's laws regarding the transfer of such assets.