While more than 19 million Americans call New York state home, countless other non-residents own second homes in the state. Similarly, over 19 million Americans call Florida home but many non-resident retirees and snowbirds own vacation homes in the Sunshine State to enjoy the warmer climate in the winter months.

The problem

Whether you own a second home in Florida or New York, you should be aware that owning a second home in another state will expose your estate and loved ones to additional costs and burdens when you pass away.

If you are a resident of Florida or New York with a second home in the other state that is solely in your name, both states will require your estate representative to commence what is commonly referred to as an ancillary estate administration in order for that representative to have authority to sell or distribute your second home to your beneficiaries. In other words, your estate representative and beneficiaries will have to deal with essentially two separate estates — one in your state of domicile and the other in the state where your second home is located.

If you are a Florida resident with a second home in New York that is worth more than $100,000, your estate is looking at a $420 filing fee. If the home is worth more than $500,000, you face a hefty $1,250 filing fee. Of course, the largest expense for a New York ancillary probate is the legal fees your estate will incur — likely a couple thousand dollars.

Costs aside, ancillary probate proceedings can be rather burdensome and time consuming, thereby delaying timely administration of your assets. Such a proceeding typically requires obtaining waivers from interested parties and the New York State Department of Taxation and Finance. If an interested party is not willing to sign a waiver (for example: a disgruntled child), then he or she will have to be issued a citation, and a court appearance from the estate attorney will be necessary. Moreover, your estate’s attorney will typically have to obtain court-certified copies of your will and other court documents filed in the court of your state of domicile. This typically adds additional costs and delays.

If you are in the reverse situation — you are a New York resident but own a vacation home in Florida, you are still facing the same scenario of an ancillary estate-administration proceeding in Florida. The filing fees are lower than New York, but again the biggest costs for your estate are the legal fees along with the same hassles and delays that arise from commencing an ancillary proceeding.

The solution

Your estate representative can offer a number of solutions for you to avoid having to commence an ancillary estate administration. The simplest solution is to deed your second home to you and your spouse jointly with right of survivorship. Upon your passing, the home automatically vests in the name of your surviving spouse. The problem with this option is that when you pass away, your spouse is now facing the same issue of an ancillary proceeding when he or she passes.

Another popular option is to title the property into a living trust or LLC. By deeding your second home into a trust or LLC created during your lifetime, an ancillary probate proceeding is not necessary. This is because the property is not owned by you personally when you pass away; it is owned by your living trust or the LLC. 

You should always consult with a qualified attorney to discuss what options are best for your particular situation.             

Ryan T. Emery is an attorney with Mackenzie Hughes LLP in Syracuse and a member of the firm’s estates department. He is admitted to practice law in New York and Florida. Emery focuses his practice in the areas of estate planning and trust and estate administration in both states. Contact him at remery@mackenziehughes.com. This Viewpoint article is drawn from the Mackenzie Hughes Blog, called ‘Plain Talk.”

Suppose you leave your garbage can open starting tonight? Do you think maybe a few critters will dive in?

Your government does the equivalent. Only it’s a bin of money. Yours, if you pay taxes. And the word has spread that the lid’s off the bin.

So say the government’s auditors. They looked at our program for helping our working poor — our earned-income tax credit program. (That is a polite way of saying “handout program.” People get tax refunds from the IRS — refunds of money they never paid into the system. Pennies and more from the heaven known as Washington, DC.)

The auditors happened to detect a problem. Government pays $10 to the poor, but $3 is a mistake. The Treasury inspector general reckons the figure is closer to $4. Or, maybe $5.

That’s right, maybe half the money the government doles out in this program is a goof-up. Paid to someone who does not qualify. Or, to a fraud. Or, to a dead person. Or, to the family dog.

Meanwhile, the White House and many in Congress call for more handouts. They insist we need to dramatically expand the earned-income tax credit program. 

They are like the guys who pay $1 each for a truckload of watermelons. They sell them for 89 cents per load. At the end of the week, they realize they have lost money. Their solution for next week is to buy two truckloads.

The watermelon guys are in a joke. Whereas the government guys are … well, I guess they are in a joke too.

There are many such laughs in Washington. The Medicare and Medicaid programs leak like sieves. As do most others. Social Security’s disability program is a joke. Millions collect for disabilities they do not have. And, even Warren Buffett could qualify for food stamps.

What kind of politicians can look at programs so fat with corruption and waste and figure they need more bucks? 

Don’t you with wish your parents and teachers would have had their standards? You would have won B-pluses for getting half the answers right. 

How do you suppose a Government Symphony might sound? Hey, the violins got half the notes right tonight.

Imagine a government airline. “Well folks, we’ve begun our descent into Seattle, I think. I have a bet with the co-pilot that it’s Seattle. He thinks Portland. And the cabin crew believes it’s Spokane, but what do they know?”

Does it trouble you that government wastes so much money? It frightens me that nobody in Washington seems to care. You don’t hear about attack dogs in Washington intent on rooting out waste. 

Instead government auditors say “…the federal government is unable to determine the full extent to which improper payments occur and reasonably assure that appropriate actions are taken to reduce them.” Do they sound like fightin’ words?

These guys may as well run white flags up their poles. They could proudly proclaim their department motto is “Oh well.” 

They hold hands with the guys who run other government messes. The IRS punishes conservative organizations? “We will get to the bottom of this scandal!” The Veterans Administration mistreats patients big time? “We will get to the bottom of this scandal!” Benghazi is a nightmare? “We will get to …” Our Secret Service turns into a hooker hangout? “We will …” 

Does anybody care? Are there any adults at home? 

All this poisons the well for government spending. It is right that government should try to help those of us in need. But when the programs for this bleed money, you cannot blame folks for damning all government spending.

From Tom…as in Morgan.        

Tom Morgan writes about political, financial, and other subjects from his home near Oneonta, in addition to his radio shows and TV show. Contact him at tomasinmorgan@yahoo.com