Executive Summary: Owning property in more than one state means your Will could be subject to multiple probates. To avoid this, North Carolina retirees can place their real estate, both in-state and out-of-state, into a revocable trust. This avoids court delays, simplifies the transfer process, and gives you more control over how the property is used or passed down.
If you own a second home, beach house, or vacation property, whether it’s in North Carolina or somewhere else, it’s time to think about what happens to that property when you’re no longer here. Because while the view may be priceless, the probate process is anything but simple.
Many retirees in Brunswick County have real estate in multiple states. And what most don’t realize is that how you hold title to that property can create extra work, cost, and stress for your loved ones after you’re gone. But with a little planning, you can save them from having to deal with multiple court filings and delays.
Own Property in More Than One State? You May Be Headed for Multiple Probates
Here’s the key point: real estate is a probate asset if it’s held in your personal name. That means your will has to be probated in your primary state of residence (North Carolina, if you’ve moved here). But it doesn’t stop there.
If you own real estate in another state like, a lake cabin in Tennessee or a condo in Florida, your family will have to open a second probate case in that other state. This is called ancillary probate, and it’s required in every state where you personally own property. Each court wants to make sure the property in its state is handled properly and that title passes cleanly. That means more paperwork, more court filings, and more time.
Want to Avoid All That? Use a Revocable Trust
A revocable trust is one of the simplest ways to avoid probate for real estate. Once the trust is created, you transfer your real estate into it using a deed. Now the trust owns the property, not you personally. That means when you pass away, your trust can keep holding the property or transfer it without needing to go through probate.
This works even for out-of-state properties. Let’s say you live in North Carolina and own a beachfront house here, plus a ski cabin in Colorado. If both properties are titled in your revocable trust, no probate is needed in either state. Your trustee simply follows the instructions in your trust.
A trust also avoids probate here in North Carolina. And that matters even if you only own one home. Because probate, even in your home state, can take months and in some cases, much longer if things are unclear or contested.
What About Leaving the Property to Family?
Many people want to leave their vacation or beachfront home to their kids. That’s fine, but you should still think through how you do it. Leaving it to “all the kids equally” sounds simple, but can create tension if some kids want to keep it and others want to sell it.
By using a trust, you can add clear instructions about who can use it, who pays for upkeep, who gets buyout rights, and when the property should be sold. You can even set aside funds to help pay for taxes, maintenance, or insurance for a few years.
The bottom line: transferring real estate through a properly prepared trust can save your family from time, expense, and conflict later. That’s true whether it’s an oceanfront home, a mountain cabin, or anything in between.
If you own property in North Carolina or in other states and want to make sure it’s passed on smoothly, B. Joseph Causey, Jr., Attorney at Law, can help you put the right plan in place. Reach out today to schedule a time to talk.