When planning your estate, there are number of elements that can provide a surprising amount of complexity. One common issue that arises when creating a comprehensive estate plan is the matter of owning real estate in more than one state. This can lead to a number of issues, especially if you have already established a will and other real estate when you purchase the property.
A practical way that this may occur is if you choose to purchase a secondary home later in life, well after you have already created your estate plan. For many people who have had their affairs in order for some time, it is common to purchase a vacation or investment property in another state later on in life. However, it is important to remember that probate guidelines are set at the state level, so owning property in a second state may mean a completely separate probate process when the time comes.
The good news is that there are ways to avoid or at least minimize this procedural nightmare. One such way to bypass it to employ a trust to hold some or all of your real estate to keep things simple.
No matter what your situation may be, you will benefit from the guidance of an experienced attorney who understands the nuances of the law and how to work within them to create the best plan for your needs. Real estate is a complex area to begin with, and mixing it with estate planning can produce any number of unanticipated issues. With proper legal guidance, you can rest assured that your estate plan is built to address all kinds of legal problems before they have the opportunity to arise.
Source: NWI Times, “Plan for out-of-state real estate,” Christopher Yugo, Feb. 12, 2017
