Ancillary Administration
• More of a problem
• Texas bank v. NM Bank (5th Circuit)
• Texas property to Texas bank and NM property to NM bank
• Texas company rich and important
• Can’t have two estates running
• Probate is a mess
• Court says domiciled in NM – then NM has right to probate
- Texas may run ancillary probate on a parallel track with NM
• Purpose:
• Every state can administer assets within jurisdiction for local creditors
• Then transfer net to primary state to distribute under its laws
• Protect local creditors and convenience for settling their claims, excess goes to primary
• UPC:
• Spoils for local bar – get around by giving notice that X is personal representative (letters of testamentary) and all property goes to them
• Open to suit in other states but eliminates ancillary administration
• Texas §95
• (a) – foreign will may be probated
• (b) – by recording
• Not as easy as UPC but if only have property – filed papers from domicile and OK
• Real property and land:
• States are most protective of these – almost always have to have ancillary probate
• UPC and Texas-like states not as big a problem
• TPP (?!?) not as big a problem – try to extract what you can and don’t assume stuck with ancillary probate – attempt to get it out
• Inter vivos trust keeps land out of probate and beats ancillary probate
• Validity of the Will
• Probate v. construction
• Probate – judge declares paper = will
- Title-accommodating, not interest-creating
- Allows will to be used as evidence of title
- Proves title but doesn’t make you the owner
- Moment someone dies, title passes to the right person, even if takes system longer to determine who that is
- Texas 37 – passes immediately at death (includes title to personal property, which is unique)
- ALL PROPERTY PASSES IMMEDIATELY
- Executor still has right to play with property until estate is settled
• May sell, etc. to fulfill creditors claims
- Texas 73 – period for probate
- Four years but can screw self because someone else could file intestate action and sell with Eckland result
• Construction – subsequent will interpretation
• Hausen
• Partition action - wants to carve property, probate hasn’t occurred yet
• - claiming doesn’t own yet
• Court says may establish ownership rights before probate
• Eckland – partition
• Court – CAN get partition
- Intestate administration to BFP
- Devisee under nonprobated will may not act as property owner
- Devisee more than intestate takers but not more than BFP – horse is out and can’t get money back
- Sue intestate takers for money
- Beneficiary should get will to courthouse for probate
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