Owning property in more than one state can be exciting. Maybe you purchased a vacation home in the mountains, inherited a family cabin, or invested in a rental property across state lines. While these properties may bring joy or financial opportunities, they can also create legal complications when it comes to estate planning.

One of the most effective tools to simplify this situation is a revocable living trust. By placing your out-of-state property into a trust, you can save your loved ones significant time, money, and stress down the road.

The Challenge: Probate in Multiple States

When a person passes away owning property, that property usually must go through probate—the court process of transferring assets to heirs. If you own property in more than one state, your estate may have to go through probate in each state where property is located.

This process is called ancillary probate, and it can:

• Take months (or even years) to resolve

• Create additional attorney’s fees and court costs

• Require family members to hire multiple attorneys in different states

• Add unnecessary complexity during a difficult time

The Solution: A Trust

Placing your out-of-state property into a revocable living trust allows the property to pass directly to your beneficiaries without going through probate in that state. Instead of the court supervising the transfer, your chosen trustee manages it according to your instructions.

With a trust, you maintain control during your lifetime, and upon your passing, your loved ones can transfer or sell the property more quickly and privately.

Benefits of Using a Trust for Out-of-State Property

• Avoid Multiple Probates – A single trust can cover properties across state lines.

• Save Money – Reduce costly legal fees tied to ancillary probate.

• Save Time – Your beneficiaries can access property faster without waiting for court approval.

• Maintain Privacy – Trust administration is private, while probate is a public court process.

• Simplify Management – A trustee can manage property easily, especially if beneficiaries live in different states.

Example Scenario

Imagine a Colorado resident who owns a second home in Arizona. If that property remains in their name at death, their family will likely face probate in Colorado and a second probate in Arizona. But if the home is owned by a trust, the successor trustee can transfer or sell it without court involvement in either state.

Taking the Next Step

If you own property in more than one state, now is the time to consider whether a trust makes sense for you. It’s a proactive step that protects your loved ones from costly, time-consuming, and stressful legal hurdles later on.

At Davis Schilken, PC, we help families structure estate plans that make multi-state property ownership smooth and efficient. We’d be happy to review your situation and guide you toward the best solution. Give our office a call today for a no obligation meeting (303)670-9855.

Don’t let your vacation home, rental, or family cabin become a burden. A trust can keep things simple, streamlined, and secure.