Some California residents own homes in other states. It could be just over the border in Arizona or Nevada. Or it could be in a much more distant location. When owning homes in two states, it is important to take estate planning into consideration.
When people own homes in different states, they will need to open a separate probate in each state where property is located. So that means more time and costs to get the estate resolved. It may also require working with multiple attorneys licensed in the different states to get the job done.
Placing real estate in a trust is a good idea when only one home is owned. When two or more homes are owned in different states, it becomes essential. First and foremost, it avoid probate for both states. Second, it can establish a stronger tie to one state as the primary residence. While California does not currently have an estate or inheritance tax, some other states do. Finally, the trust could assure that both properties have someone empowered to manage them, pay the mortgage, and keep them in good condition until the heirs can take possession.
Trusts can provide additional support in a variety of other ways. For example, if there is concern that an heir would squander an inheritance, or aggressive creditors would seek to claim it, then a trust could ensure the property remains in the family and for the benefit of the heir. In some cases, a family legacy can be created by setting aside property for the benefit of numerous decedents, especially in a popular vacation area, such as Los Angeles.
Estate planning attorneys can not only prepare the necessary documents to protect your homes and avoid probate but also provide valuable guidance on managing your estate for future generations.