When you Need a Trust – Real Property in Multiple States
Revocable Trusts provide a host of benefits to the beneficiaries of a deceased loved one. Probate is avoided and administration is less cumbersome. These are nice benefits of a revocable trust; however, some clients feel that these benefits do not outweigh the cost of setting up an estate plan with a revocable trust.
One circumstance that make a revocable trust really needed is having real property in more than one state.
If you have real property in one state, it will be included in your Probate estate. When your Personal Representative is granted authority to act on behalf of the estate, he or she will be able to transfer or sell the property in accordance with your wishes.
If you have real property in more than one state, the process becomes far more difficult and more costly. A probate court order from one state is not effective in another. Therefore, your Personal Representative in Michigan, will not have the legal authority in Arizona or Florida to sell or transfer your property. It will be necessary to open a probate proceeding in every state in which you own real property.
A revocable trust, into which all of the real property has been transferred will enable your successor trustee to transfer or sell all of your properties in accordance with your wishes without the need to go to court.