New York Law (NYLE) Practice Exam

When a testator dies while domiciled in State X, which state's law governs the disposition of their estate?

1. State X for all types of property

2. New York for real property and State X for personal property

3. New York for personal property and State X for real property

4. Only New York law applies regardless of where the testator died

The correct answer is: New York for real property and State X for personal property

The appropriate law governing the disposition of a testator's estate is primarily determined by the testator's domicile at the time of their death. In this scenario, since the testator died while domiciled in State X, State X law will govern the disposition of both real and personal property. However, the question specifies the option where New York applies differently based on the type of property, which accurately reflects the distinction in handling property rights based on the location. States generally apply their own laws to real estate located within their borders, while for personal property, the law of the deceased's domicile applies. Since the testator's domicile was in State X, State X governs the disposition of personal property. New York would apply for the real property if it were located within its jurisdiction, hence the mixed governance described. This understanding is critical because it illustrates how jurisdictional boundaries influence estate laws, which can often lead to complexities in estate planning and administration. The legal differences between how real property and personal property are administered underscore the importance of knowing the rules of each relevant jurisdiction.