Moving Ntext To Nvarchar(max)

I just move our SQL server to version 2005. In new version ntext field is deprecated and documentation says that ntext(max) should be used.

If I have table Table1 and ntext column Column1. When I execute following SQL statements:

alter table Table1 alter column
Column1 nvarchar(max)
go

1.) Are out of row data automatically move to in row?
2.) Or should I also execute something like this ?

update Table1 set Column1 = Column1+'' where Column1 is not null

3.) Is there way to check if data is stored out or in row?

Best regards
edvin