How to settle an estate in New Mexico and manage property located in another state

Disclaimer: I am not a lawyer. This article explains common steps under New Mexico law to help you decide whether to hire an attorney. It is general information and not legal advice.

Detailed answer — step‑by‑step guide under New Mexico law

Below is a clear roadmap you can follow if a parent died owning assets in New Mexico and also owned property in another state. I use a short hypothetical to illustrate the steps.

Short hypothetical

Example: Your parent was a New Mexico resident who died leaving a New Mexico bank account, a house in New Mexico, and a second home in another state. There may be a will, or there may not be one.

1. Immediately secure documents and the property

• Locate the will, any beneficiary designations, deeds, insurance policies, bank statements, and recent tax returns.
• Change alarm codes, maintain insurance, and secure physical property. For out‑of‑state property, arrange a lockbox or local caretaker.

2. Determine if probate is needed in New Mexico

Probate is the court process that transfers title to assets owned in the decedent’s name alone. If your parent’s New Mexico assets passed by beneficiary designation (payable‑on‑death, joint tenancy, transfer‑on‑death deed) or are small enough to qualify for a simplified procedure, full probate may not be required.

For the official New Mexico statutes on probate and available procedures, see the New Mexico statutes and court resources: New Mexico Statutes (NMSA) and New Mexico Courts.

3. If there is a will, file for probate in New Mexico

1. File a petition in the appropriate New Mexico probate court (usually the probate division of the district court in the county where the decedent lived).
2. The court will appoint a personal representative (executor or administrator) to manage the estate.
3. The personal representative gathers assets, pays valid creditors and taxes, and distributes the remainder to heirs or beneficiaries.

4. If there is no will, start intestate administration

New Mexico law provides a priority order for who serves as personal representative and how property passes to heirs. The court will appoint an administrator, and distribution follows statutory rules.

5. Handle creditor notices and claims

The personal representative must identify and notify creditors, evaluate claims, and pay debts in the order required by law. Keep careful records and follow the probate court’s deadlines and procedures.

6. Inventory, appraisal, and tax responsibilities

Prepare an inventory of estate assets and obtain appraisals when required. File final income tax returns for the decedent and any estate tax filings if thresholds apply. Consult tax guidance or an accountant for filings.

7. Transfer New Mexico titled assets

Once debts and claims are handled and the court authorizes distribution, transfer bank accounts, sell or retitle real estate, and distribute personal property according to the will or law.

8. Address the out‑of‑state property (ancillary administration)

Owning real property in another state generally requires action in the state where the real property sits. Common options:

• Ancillary probate/ancillary administration: If the decedent’s main probate occurs in New Mexico, most states require a local ancillary probate proceeding to transfer title to land located there. The New Mexico personal representative (or the person appointed in New Mexico) files certified documents (letters testamentary or letters of administration) with the other state’s probate court to open an ancillary estate.
• Nonprobate transfer methods: If the out‑of‑state property has a transfer‑on‑death deed, or if the owner held the property in joint tenancy with rights of survivorship, the property may pass outside probate. Check the law of the state where the property is located to confirm.
• Small‑estate procedures: The other state may offer a small‑estate affidavit or simplified transfer for low‑value real or personal property, avoiding full ancillary probate.

Because each state’s probate and real‑property rules vary, you will likely need to work with an attorney licensed in the state where the property sits. That lawyer can either open an ancillary proceeding or advise on nonprobate options.

9. Close the estate in New Mexico

After paying debts, taxes, and expenses, and after distributing assets as the court approves, file a final accounting and petition the court to close the estate. When the court approves, the personal representative is discharged.

10. Practical timeline and costs

Probate timelines vary. Simple estates can close in a few months; complex estates or those with real property in multiple states can take a year or longer. Costs include court filing fees, appraisal fees, possible bond premiums, attorney fees, and costs to manage or sell property.

When to hire an attorney (and who to hire)

• Hire a New Mexico probate attorney if the estate must open probate here, if the will is contested, or if tax/complex asset issues arise.
• Hire an attorney licensed in the state where the out‑of‑state real property sits to handle ancillary probate, title transfer, or sale.
• If the out‑of‑state matter is limited (for example, a single deed transfer), some local attorneys can act as ancillary counsel with documents from the New Mexico personal representative.

Useful New Mexico resources and statutes

• New Mexico Statutes and laws (start here to search the probate code): https://www.nmlegis.gov/Laws
• New Mexico Courts — general probate information and local court contacts: https://www.nmcourts.gov/

Look in the New Mexico statutes for provisions on probate administration, appointment of personal representatives, creditor claims, and small‑estate procedures (search for the probate-related chapters).

Helpful Hints

• Start by finding the original will and any beneficiary designations—these documents can remove the need for some probate steps.
• Secure and insure all real property immediately to avoid vandalism or damage and to protect value until transferred or sold.
• Keep a centralized file of all estate documents and a calendar of deadlines given by the court.
• Be cautious about informal promises to heirs—only the court’s approved distribution (or valid beneficiary designations) controls ownership transfers.
• If you must hire out‑of‑state counsel, ask the New Mexico probate attorney for referrals to trusted attorneys in the other state.
• If the out‑of‑state property uses a transfer‑on‑death deed or has a named beneficiary, confirm whether that mechanism is recognized in the state where the property sits before opening ancillary probate.
• Budget for appraisal and closing costs when selling out‑of‑state real estate; expect additional travel and coordination time.

Next practical steps

1. Collect the will and key documents and make copies.
2. Contact the clerk of the probate court in the New Mexico county where your parent lived to ask about initial filing steps.
3. Talk with a New Mexico probate attorney if the estate looks nontrivial, if you expect disputes, or if taxes may be due.
4. Contact a local attorney in the state where the other property sits to discuss ancillary probate or transfer options.

Handling an estate that crosses state lines adds steps but follows familiar principles: probate in the decedent’s home state to distribute local assets, and ancillary proceedings or recognized nonprobate transfers in other states to clear title to out‑of‑state real property.