Out-of-State Property in Your Trust
Quite commonly, clients own real estate in more than one state. Their question: How will their Family Trust deal with that?
The answer is “exceedingly well.” Here’s how that works:
Where a person owns property in more than one state, but either has no estate plan at all or one that is based on just a Simple Will, the heirs of that person are destined to be subjected to multiple probate proceedings.
When the person who owns the property passes away, his Executor will first have to hire a lawyer and file a primary probate proceeding with the courts in the state where the person resided. Then the Executor will have to also hire a lawyer in each of the other states in which real estate was owned in order to file ancillary probate proceedings in each of those states.
The attorney’s fees and court costs for these multiple probate proceedings can quickly escalate to shockingly large sums.
But the primary benefit offered by a Family Trust is avoiding probate. And where a person owns property in more than one state, the Family Trust will avoid the costs of both the primary probate, as well as all of the ancillary probate proceedings.
So, for those who own property in more than one state, the benefits of the Family Trust will outweigh the costs many times over. All in all, a Family Trust for such people will yield a remarkable return-on-investment. The heirs for those people will rise up and call them “blessed” when the day comes that they pass away.