With summer officially underway, your vacation home may be calling. As you make your travel plans, your estate plan is probably the last thing on your mind.
But owning a second property, especially one located outside of California, can bring legal complications you didn’t expect.
Your Vacation Home Lives by a Different Set of Rules
Unlike bank accounts or personal belongings, real estate is tied to the laws of the state where it’s located.
That means your vacation home isn’t just governed by California law—it’s subject to the jurisdiction of the state within which it is located. This matters when it comes time to transfer the property after your death.
You may have created a will to cover all your assets. On the surface, that seems like a reasonable plan. But for out-of-state real estate, a will triggers a separate probate court proceeding. This process happens outside of California and adds another layer of legal complexity.
The Surprise That Catches Many Families Off Guard
Many people don’t realize that probate isn’t always a single event. If you pass away owning property in more than one state, your family could end up dealing with multiple court systems. Each state has its own process, deadlines, and filing requirements.
This issue often surfaces unexpectedly. A family grieving a loss suddenly discovers that they need to hire a second attorney, meet another round of legal deadlines, and potentially appear in a distant court. The time and expense of this second procedure can be a real burden.
Ancillary Probate: What It Is and Why It Happens
That second court case is called ancillary probate. It’s required when a deceased person owns real property outside of their home state and passes it through a will.
The local probate court in that second state won’t accept direction from California without going through its own formal process.
Ancillary probate adds legal fees, court costs, and delays. In some states, the process is more cumbersome than it is in California. You may also face requirements around local executors or additional paperwork that your California plan doesn’t cover.
This is exactly the kind of hassle most people hope to avoid through estate planning. The good news is that it’s also avoidable.
Why a Living Trust Can Solve the Problem
If you place your out-of-state property into a revocable living trust, you avoid probate in California and in the other state. Your successor trustee can manage and transfer the property privately, without court involvement.
A properly funded trust gives you flexibility while you’re alive and preserves efficiency after your death. It keeps the vacation home under one unified plan, no matter where it’s located.
This avoids the need to reopen your estate in another jurisdiction and protects your beneficiaries from unnecessary court battles.
You Still Control the Property During Your Lifetime
Some people worry that putting property into a trust means giving up control, but that’s not the case. While you’re alive and well, you serve as trustee and can sell, rent, or renovate the vacation home just like you always have.
The difference comes after incapacity or death, when your plan shifts seamlessly into action without the need for court approval.
Learn More!
We host learning events both online and in person, and this is a great way to connect with our firm and come away with some important information. To get all the details, visit this page: Petaluma, CA estate planning events.
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