How to Handle Out-of-State Property in Your Estate Plan

Owning real estate in more than one state can complicate your estate plan if not handled properly. Many individuals own vacation homes, rental properties, or inherited real estate in other states. While this is often a sign of financial growth, it can lead to legal complications after death.

The Problem: Ancillary Probate

The primary issue is ancillary probate — a separate probate process required in each state where the deceased owned real property. Ancillary probate is time-consuming, expensive, and creates unnecessary stress for your loved ones.

For example, if you live in Pennsylvania but own a vacation home in Florida, your family would need to go through probate in both states. Proactively planning avoids this entirely.

Strategies to Avoid Ancillary Probate

Revocable Living Trust

This is often the most effective solution. By titling your out-of-state property in the name of a revocable living trust, it passes to your beneficiaries upon death without any probate — in any state.

How it works: Establish a revocable living trust with your estate planning attorney, title your out-of-state property in the name of the trust, manage the property as trustee during your lifetime, and upon death, your successor trustee handles the transfer without court involvement.

Joint Ownership with Rights of Survivorship

Adding a co-owner to the deed means the property automatically passes to the surviving owner. This may work for married couples but is generally not recommended for non-spouses due to legal and financial risks.

Transfer on Death Deed

Some states allow a transfer on death (TOD) deed, which lets you name a beneficiary who automatically inherits the property upon your death — no probate needed. Check whether the state where your property is located allows TOD deeds, as not all states do.

LLC Ownership

Placing out-of-state property into an LLC can be a strategic option for rental properties or vacation homes. The LLC interest can then be managed through your estate plan.

Action Steps

Review whether your current will, trust, or estate plan addresses your out-of-state property. Check how your property is currently titled. Work with your estate attorney to determine the best strategy. Make sure your estate planning documents are consistent and legally valid in all relevant states.

At Ament Law Group, we help clients create comprehensive estate plans that protect all their assets — including real estate in multiple states. Call us at (724) 733-3500.