Owning property in more than one state may seem like a smart investment or an enjoyable lifestyle choice. A family cabin, a retirement condo in Florida, or a rental home in another state can all be part of a well-lived life. But when someone passes away, those extra properties introduce complications that many families are not prepared to handle.
This post explains how the law treats real estate located in multiple states after death, and what you can do now to keep those properties from becoming a legal headache for your heirs.
Probate Does Not Follow You; It Follows the Property
Probate is the court process that handles the distribution of someone’s assets after they pass. Most people understand that this takes place in the state where the person lived. What many do not realize is that real estate is treated differently than personal property like bank accounts or vehicles.
The law of the state where real property is located controls what happens to that property. This means that if you live in South Carolina but own a second home in North Carolina, your family will need to open two separate probate cases. The main case happens in your home state. The second, called an ancillary probate, must be filed in the state where the out-of-state property sits.
What Is Ancillary Probate?
Ancillary probate is a secondary legal proceeding that takes place in a different state from where the decedent lived. Its only purpose is to deal with real property in that second state. Your personal representative, also known as your executor, may need to hire a separate attorney, file new paperwork, and possibly attend a court hearing to administer just that single property.
In states with slower court systems or more complex procedures, this can delay inheritance by months or even longer. It can also increase legal costs for your estate, especially if there are challenges related to title, access, or local taxes.
Common Situations That Trigger Ancillary Probate
This issue is more common than people think. It tends to affect:
Retirees who move south but keep their original home
Families with inherited land in another state
People who own vacation property or timeshares
Individuals with rental properties or real estate portfolios
In each case, the out-of-state property becomes its own legal problem after death unless it is handled differently in the estate plan.
How a Revocable Trust Can Help
One of the most effective ways to avoid ancillary probate is by transferring out-of-state property into a revocable living trust during your lifetime. A trust allows you to name a successor trustee who will distribute the property according to your instructions, without needing court involvement in any state.
For the trust to work, however, the property must be properly retitled in the name of the trust before you pass away. If you forget to move the deed into the trust, or if you purchase new property later and fail to update your documents, the probate court may still need to step in.
Can You Use a Transfer-on-Death Deed?
Some states offer transfer-on-death (TOD) deeds or beneficiary deeds for real estate. These deeds allow you to name a beneficiary who will automatically receive the property upon your death, bypassing probate. As of now, not all states recognize TOD deeds, and the rules vary depending on location.
If your second home is in a state that permits this approach, it can be a simple and low-cost alternative to setting up a trust. That said, TOD deeds can create confusion if they conflict with your will or trust. It is important to make sure your plan is consistent across all documents.
What If the Property Is Co-Owned?
Owning property jointly with another person can also help bypass probate. For example, joint tenancy with right of survivorship allows your interest in a property to automatically transfer to the other co-owner. Married couples often take title this way.
However, joint ownership may not be the right solution for everyone. It can affect how the property is taxed, limit your ability to sell or refinance, and create unintended legal entanglements if one co-owner dies or becomes incapacitated.
Divorce Can Complicate Out-of-State Property Transfers
If you were previously married and still own real estate with an ex-spouse in another state, it is important to review how that property is titled. In many cases, divorce decrees do not automatically remove an ex-spouse’s name from a deed. This can lead to confusion or even legal disputes after your death.
If you remarried and did not update your estate plan, your current spouse may have no rights to property that is still titled jointly with a former spouse. Alternatively, adult children from a prior marriage may be unintentionally disinherited if property passes automatically to a new spouse. These are the types of risks that increase with each out-of-state asset and each chapter of your personal history.
A divorce lawyer in Fort Worth or elsewhere can help review these deeds, clean up outdated ownership records, and make sure your estate reflects your current intentions.
What Happens If You Do Nothing?
If you own out-of-state property in your name alone and pass away without placing it in a trust or naming a beneficiary, your heirs will likely face probate in multiple states. In some cases, this causes significant delays. In others, properties sit unmanaged for long periods, and families struggle to cover maintenance, taxes, or mortgage obligations.
Even worse, mistakes in the paperwork or unclear instructions can lead to disputes between heirs. These conflicts often end up in court and may damage relationships beyond repair.
Why You Should Talk to an Attorney
If you have real estate in more than one state, you should speak with an estate planning attorney who understands how different states handle property. Depending on the situation, you may need to update your deed, create a trust, or adjust your existing estate plan to avoid unnecessary court involvement.
In some cases, it may also be helpful to consult a family law attorney if you co-own property with someone outside your immediate family or if you have concerns about how your estate will be handled by a surviving spouse or child.
Planning Ahead Makes All the Difference
Out-of-state property can be a blessing in life and a burden in death. But it does not have to be. With a few strategic decisions, you can make sure your home, land, or investment real estate passes smoothly to the people you care about. That means fewer delays, less court involvement, and fewer legal costs for your family.
A well-crafted estate plan can prevent the headaches that often come with multiple properties. Whether you choose a trust, a TOD deed, or another method depends on your goals and the laws in each state. The important part is acting while you still have the ability to make those choices yourself.
