I often work with people that own a home in Texas and also real estate in other states. If you fall into this category, it is important to know the most efficient way to title the out-of-state real estate so there is a smooth transition to your heirs. Not doing so, will add additional hassle, costs and frustration for your loved ones in order to get your estate settled.
I’m working on establishing a Revocable Living Trust for a San Antonio family. They own a home in Texas and they also own real estate in Colorado and Florida. Their primary concern is to get the titles of the real estate in the two other states transferred to the trust in order to avoid the ancillary probate that would be necessary when they pass away. The ancillary probate is an additional probate that is required when someone dies a resident of one state and they own real estate in their name in another state. In order to eliminate the additional expense and time involved with an ancillary probate, they need to retain the services of a lawyer in Colorado and Florida to transfer the property in those states to the trust and have it recorded in the proper county. Their Texas attorney cannot transfer the Colorado and Florida real estate to their trust. If your assets are set up the right way and your trust owns all of your real estate when you die, not only will the costs and time involved with a Texas probate be avoided, but ancillary probates in other states will be unnecessary.
Additionally, I am working on a Texas probate for a San Antonio resident who died owning property in California. The Texas probate transferred the assets and the Texas real estate to the appropriate family members. The California property could not be transferred. Like always, I advised the family to seek out and retain an attorney in California to handle the ancillary probate and get the real estate transferred to the appropriate heirs. A Texas probate attorney cannot handle the ancillary probate in another state.
So what should you do if you are alive and well and you own real estate in multiple states? In order to avoid multiple probates when you die, consider creating a revocable living trust and working with different attorneys in each state where you own real estate to get all of the real estate “funded” into the trust. A little effort now can avoid multiple court proceedings in multiple states when you die.
To help take the confusion out of things for your family, contact me at (210) 202-1141 to arrange for an appointment or visit my website, www.skeenlawfirm.com to register for an educational seminar.
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