Owning Realty in several states is a dream for lots of, but a reality that lots of have actually currently achieved. This means you might have a residence in one state and a villa in another state. This is an advantage for the few that can pull it off, but there can be repercussions down the roadway. Owning property in several states can drastically impact your estate plan.
One crucial aspect of making an estate plan is made to reduce the concern on those that will have to perform your estate in probate as an executor or personal representative. This concern is higher when one owns property in several states. If one is a resident in one state and has property any other state that ranges from a home, cattle ranch, or to land as little as simply a timeshare, there may be a harder and costly scenario for your liked ones down the road.
The property that remains in your state of residence will be probated through the court of probate in your state of residence. Probate courts exist to change title from the departed name to the name of possible beneficiaries. The court of probate in your state of house does not have the authority to probate property in other states. This means that a probate proceeding should be initiated in each state that one owns property in even if it is simply a timeshare in Florida that you invest one week in a year. This likewise indicates your estate needs to pay additional fees for probate and probably attorneys in each additional state.
A solution to probate in numerous states or what is called supplementary probate can be a revocable living trust. A revocable living trust takes the title of the property out of your name and puts title of the property into the name of living trust. Probate is only necessary for properties entitled in your name. As soon as title of property is removed from your name there is no need for probate of that property in one state or several states.
A revocable living trust is not indicated for everyone’s estate plan, but it makes good sense for those with property in other states. Living trusts can be pressed on some that do not actually require it as part of their estate plan, but owning property in more than one state is major factor to search in to getting one made. Contact an estate planning attorney to see if a trust is best for your estate circumstance.