Owning real estate across multiple states can be a great way to grow your wealth, support your family, or enjoy different parts of the country. But when it comes to estate planning, things can get complicated fast. Without the right plan, your loved ones could end up dealing with courts in several states, drawn-out legal processes, and unnecessary costs.
The good news? With a few smart decisions, we can help you keep things simple and make sure your wishes are followed.
The Problem With Multi-State Property and Probate
When someone passes away, their estate typically goes through probate in the state where they lived. If they also owned property in another state—say a vacation home in Arizona or a rental condo in Texas—that property might have to go through something called ancillary probate in each additional state.
That means:
- More than one court proceeding
- More legal and administrative fees
- Delays in getting property to heirs
Imagine your family not only needing to handle probate here in California but also in Nevada, Oregon, or wherever else you owned property. This can lead to extra stress during an already difficult time.
The Role of a Revocable Living Trust
One of the easiest ways to avoid multi-state probate is by using a revocable living trust. This type of trust lets you place your real estate and other assets into a legal structure that bypasses probate entirely.
Here’s how it works:
- You create the trust and transfer your out-of-state property titles into it.
- You stay in control as trustee during your lifetime.
- You name someone you trust to take over after your passing.
- When the time comes, your property is passed on according to your instructions—no court involvement needed.
This approach offers several benefits:
- Keeps your estate out of court
- Reduces legal costs
- Speeds up the process for your beneficiaries
- Keeps your affairs private
Whether you own a rental home in Colorado or a beach house in Florida, putting that property into your California trust can save your family time, money, and headaches. We help clients with this process all the time and can guide you through each step.
Watch Out for State-Specific Laws
Every state has its own rules when it comes to property ownership and inheritance. What works here in California might not work the same way in another state. For instance:
- Some states treat jointly owned property differently
- Others may have specific rules for spousal property rights
- Estate and inheritance taxes vary from state to state
That’s why it’s important to build an estate plan that works across state lines. We’ll help you review how each property is owned and make sure everything fits together, no matter where your real estate is located.
Keeping Your Plan Updated
Life doesn’t stand still. You might add new properties, sell others, or move your primary residence to another state. Any of these changes can affect your estate plan. That’s why we recommend reviewing your plan regularly, especially if:
- You buy or sell real estate
- You move to another state
- Your family situation changes
- It’s been a few years since your last review
We offer ongoing support and can help make updates when needed. It’s better to adjust now than leave surprises for your family later.
How We Can Help
At OC Wills & Trust Attorneys, we’ve worked with many families who own property in more than one state. We’ll take the time to understand your goals, review your assets, and create a plan that fits your situation.
We can help you:
- Set up a revocable living trust
- Transfer out-of-state property into your trust
- Coordinate with professionals in other states, if needed
- Keep your estate plan up to date as life changes
Planning ahead now can make a world of difference down the road. We’re here to make the process clear and manageable from start to finish.
Protect What You’ve Built Across State Lines
Owning property in more than one state doesn’t have to make your estate plan more stressful. We’ll help you build a plan that protects what you own and keeps things easy for the people you care about. Contact OC Wills & Trust Attorneys today to schedule your consultation.
