How will my property outside my home state complicate things for the beneficiaries of my estate? Vacation homes, investment properties, and inherited property that is located in a state other than the state in which you reside can make settling your estate more expensive and more time-consuming.
You plan to give property to family, friends, or charity when you pass away because you can’t take that property with you to the grave. The legal process whereby these beneficiaries take ownership after your death can either be difficult or easy.
The difficult method of transferring ownership is through the probate court. Probate is where your will is proven to be legal effective and valid and where your executor or personal representative is given official authority to act on behalf of your estate. Once your executor or personal representative is given this authority, he or she can sign a deed to convey title to your beneficiary.
The easy method of transferring ownership is through a revocable trust, also known as a living trust or an inter vivos trust. Probate is unnecessary if a revocable trust is set up and administered correctly. Instead of receiving authority through a court proceeding by a judge, the successor trustee of your revocable trust has authority to settle your estate. Under a revocable trust, the successor trustee signs the deed to convey title to your beneficiary.
There is a more simple solution than selling all property you own outside your home state. The solution is to set up a revocable trust.