15 Apr 2016

Property out of State? – Living Trust May be Ideal Solution!

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Do you own real property out of state?   If so, using a Living Trust for your estate plan may be an ideal solution for you.

Think of a living trust as acting like a will, except it can avoid probate.  Probate is a state ordered process of filing forms with a local District Court just to obtain permission to transfer your assets to your loved ones at death, where property is in your name at death.   Probate has few benefits.

What’s the big deal with out of state property titled in your name?  Well  if you own property in more than one state, when you die, your heirs will have to open up a probate file for each state where property is located!   So, for example, if you own property in Colorado, and one or more other states, without a living trust, your loved ones will have to hire lawyers and open up a Court File in all those states to probate each property in each of those states.    This process can be both timely and expensive, and in most cases, completely unnecessary!

The solution:  Use a Living Trust as your core estate plan.   If titled properly in your Trust, your real property in those states should avoid probate entirely.

My commentary and solutions discussed in this article constitute legal information, not legal advice.   Possible solutions discussed may or may not apply to your situation and vary from state to state, and  may not be available in the state where you reside.   If you are a Colorado resident, please feel free to call me for a free consultation at 303-457-9500.  Alternatively, be sure to discuss these issues with a competent estate planning attorney before taking any action.

James Morgan, Esq., CFP®

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