If you own property in multiple states, your estate plan may have to deal with the laws of every state.
For example, if you live in Ventura but own a vacation home in Arizona in your individual name, your family could potentially face a probate proceeding in both states. California Courts explains that when someone owns real property in another state, that state’s laws govern the distribution of that property and probate may be required in each state where real property is located.
That additional proceeding is commonly called ancillary probate, and it can more legal expenses, court involvement, and potentially more delay. However, owning property across state lines does not automatically mean your family will face multiple probates. How the property is titled, whether it is properly held in a trust, whether it is jointly owned, and the laws of the state can all change the outcome.
What Happens If You Own Property in Multiple States?
Picture a couple living in Ventura County. Their primary residence is in California, but over the years they have accumulated a few other properties. They own a small cabin in Colorado, a rental property in Nevada, and a piece of land in Arizona.
They have a Will and have talked to their children about who gets what. Then, they assume that when they eventually pass away, everything will simply go to their children according to their wishes.
Unfortunately, the legal process may not be quite that simple.
Real estate is different from many other assets because the location of the property matters. California Courts explains that the probate laws of the decedent’s home state generally govern personal property and property located in that home state, while the state where additional real property is located generally determines how that real estate is distributed. If real property is located in another state, a probate proceeding may be required there as well.
The IRS makes a similar distinction in its guidance on probate. It notes that state law generally determines which courts administer an estate and that more than one probate proceeding may be opened when a decedent owned property in more than one state.
That means a person can have one estate but potentially several probate proceedings.
And that is where multi-state property ownership can become a problem for an otherwise well-intentioned family.
Why Does Owning Property in Multiple States Matter?
When you own property in multiple states, you are not necessarily dealing with one set of rules.
Your California estate plan may be drafted under California law, but the legal system in the state where your second home sits may have its own requirements for transferring that property after your death. The deed, ownership structure, probate process, tax rules, and other requirements can vary depending on the jurisdiction.
This does not mean that every person with an out-of-state property needs a complicated estate plan. It does mean that the property should not be treated as an afterthought.
Consider someone who lives in Thousand Oaks and owns a vacation home in Utah. If the Utah property is titled solely in that person’s name and they die without taking additional planning steps, their family may have to deal with Utah’s procedures to transfer that real estate.
This can translate into another court, another attorney, and another layer of administration at an already difficult time.
What Is Ancillary Probate?
Ancillary probate is the additional probate process that may be required when someone dies owning real estate outside their primary state of residence.
Imagine that you live in Ventura and own your California home in your individual name. You also own a rental property in Nevada, also in your individual name. When you die, California may be the state where your primary estate administration takes place because that is where you lived. But Nevada is still the state where the rental property is physically located.
Your family may therefore have to deal with the Nevada property separately.
The Superior Court of California, explains that when someone owns land in more than one state, the state where the person lived generally handles the primary probate. This while the state where additional real property is located may require its own probate proceeding. The court specifically identifies this additional process as ancillary probate.
The IRS also uses the term “ancillary estate” for a secondary estate situated in another state where the deceased owned assets, particularly real property.
Ancillary probate is not necessarily catastrophic, but it can add complexity. Your family may need to coordinate with courts and professionals in more than one jurisdiction.
Does a California Living Trust Help With Out-of-State Property?
Potentially, yes. This is one reason a properly prepared and funded revocable living trust can be particularly useful for some families who own property in multiple states.
California Courts identifies property held in a living trust as an example of property that may pass without formal probate. The IRS likewise identifies property held in a revocable or living trust with a designated beneficiary as an example of non-probate property that generally does not come under the court’s control.
But there is a very important catch: the property actually needs to be owned by the trust or otherwise structured to pass outside probate.
Creating a trust does not magically place every asset you will ever own into it.
Suppose you created a California living trust five years ago. Last year, you purchased a vacation home in Arizona, but the deed remained in your individual name. Your trust exists, but that does not necessarily mean the Arizona property is actually a trust asset.
This is one of the most common areas where estate planning and real estate ownership intersect.
The Deed Matters More Than You Might Think
People often think of estate planning as a collection of documents, and perhaps a few other forms.
But when it comes to real estate, the deed matters enormously.
Your estate planning documents may say that your children should inherit your vacation property. The question is how the property is legally owned when you die.
California Courts specifically advises families dealing with property after someone’s death to determine how real estate was owned by looking at the title or deed. Depending on the ownership structure, property may pass automatically to another owner or may need to go through probate.
That is why buying a property after you create your estate plan should trigger a quick estate planning check. Make sure someone reviews the ownership and confirms that the property has been incorporated into your overall plan.
What If You Own a Vacation Home in Another State?
Vacation homes are one of the easiest properties to overlook.
Maybe your family bought a cabin near Lake Tahoe. Maybe you have a beach house in Oregon. Perhaps you bought a property in Arizona after retirement because you wanted somewhere warm to escape California winters. Or maybe the property has been in your family for decades.
Whatever the reason, the emotional significance of the property can make the estate planning conversation even more important.
Your children may have completely different ideas about what should happen to it. One child might want to keep the house because it represents family memories. Another may live across the country and have no interest in maintaining it. A third may prefer to sell it and divide the proceeds.
If you own property in multiple states, your estate plan should address more than who technically receives each property. It should also anticipate the practical reality of owning and managing that property after your death.
Who pays the mortgage or the property taxes? Who maintains the house and who can sell it? What happens if one beneficiary wants to sell and another wants to keep it?
Those questions can become family disputes when they are not addressed ahead of time.
What If You Inherited Property in Another State?
Inherited property can create another layer of complexity because people often forget that the property eventually becomes part of their own estate.
Imagine you live in Oxnard and inherit your parents’ home in Arizona. You decide to keep it because it has been in your family for generations.
For the next fifteen years, the house may simply be “Mom and Dad’s old house” in your mind. But legally, it is now your property. Your estate plan should account for what happens to it when you die.
The same applies to inherited land, rental properties, vacation homes, or partial interests in real estate. If you inherited out-of-state property and have never reviewed the deed or ownership structure with your estate planning attorney, that is a good place to start.
What Happens If You Own Property in Multiple States Without a Trust?
Not every estate requires a living trust, and having property in another state does not automatically mean that a trust is the right solution.
However, if an out-of-state property is owned individually and does not otherwise have a mechanism for transferring outside probate, your family may face additional court involvement.
A Will is an important estate planning document, but a Will does not necessarily eliminate probate. Instead, a Will generally tells the court and your family what you wanted to happen to your property.
If your out-of-state property has to go through probate, your family may still have to use the legal process required by the state where that property is located.
The question therefore becomes less about whether you have a Will and more about how each asset is structured to transfer at death.
Can You Put Out-of-State Property Into a California Trust?
A California resident can use a California revocable living trust as part of a plan for property outside the state. But the specific transfer needs to be handled correctly.
Real estate is governed by the laws and recording requirements of the jurisdiction where the property is located. You should not assume that a deed transferring California property into a trust will work identically for other states.
The trust itself is only one piece of the puzzle. The deed and the way the property is titled are equally important.
For California real property, California Probate Code section 15206 addresses requirements for trusts concerning real property. The same basic lesson applies when planning around property elsewhere: ownership needs to be properly documented rather than assumed.
If you are considering transferring an out-of-state property into a California trust, your estate planning attorney should review the property.
What About Property Taxes and Estate Taxes?
Estate planning for multi-state property is not exclusively about probate.
Taxes can also enter the picture.
At the federal level, the IRS explains that the gross estate generally includes property a person owns at death. Its current guidance also specifically addresses real estate as property that can be included in the gross estate.
That does not mean that every family that owns multiple homes will owe federal estate tax. Federal estate tax rules include significant thresholds and deductions, and whether an estate tax return is required depends on the circumstances and the year of death. The IRS currently states that for deaths in 2025, the federal filing threshold was $13.99 million. Although estate tax rules and thresholds can change.
State-level taxes are another matter. Some states impose their own estate or inheritance taxes, and property ownership.
For that reason, families with significant real estate holdings should coordinate estate planning with qualified tax professionals when appropriate. The goal is to make sure the legal structure of the property does not create an unintended tax problem later.
What Should California Families Do If They Own Property in Multiple States?
Start with something surprisingly simple: make a complete list of your real estate.
Include your California home, vacation properties, rental properties, inherited property, undeveloped land, timeshare interests, and any partial ownership interests you may have.
Then look at how every property is actually titled.
Do not rely on memory. Pull the deeds and ownership records. A property you bought ten years ago may be titled differently from a property you purchased last year, even if you assumed they were handled the same way.
Once you have the inventory, compare it with your current estate plan. If you created your trust before purchasing a new property, make sure the new property was properly incorporated into the plan.
For families in California, this is especially important when purchasing vacation properties or investment real estate outside California.
If you own real estate outside California, The Heritance Lawyers can help you review how those properties fit into your California estate plan and identify potential gaps before they become problems.
What If You Already Have a California Estate Plan?
If you already have a trust or Will, that is a great starting point. It does not necessarily mean your work is finished.
Estate plans can become outdated when your life changes. You may buy a property, sell a property, refinance a property, inherit real estate, get married, get divorced, have children, or experience other changes that affect what you want your estate plan to accomplish.
Out-of-state real estate is particularly easy to miss because it may not be part of your everyday financial life.
That cabin you visit twice a year can still become one of the biggest administrative headaches for your children if its ownership was never coordinated with your estate plan.
A periodic review can help make sure the property you own today is actually addressed by the plan you created years ago.
The Goal Is Not Just to Decide Who Gets the Property
When families think about estate planning, they often focus on the final question: Who gets my house?
That question matters, but it is only part of the story.
If you own in multiple states, you need to think about how your family will legally take control of it. Whether probate will be required, which state’s laws will apply, who will manage the property.
A well-coordinated estate plan should make those answers easier to find.
Your children should not have to become detectives after your death. Trying to search through old paperwork to figure out which properties you owned.
They should be able to follow a plan you created while you were here to make those decisions.
Frequently Asked Questions
What happens if I own property in multiple states when I die?
California Courts explains that when real property is located in another state, that state’s laws determine how the property is distributed.
Can a California living trust avoid probate for property in another state?
A properly funded living trust may allow property to pass outside probate, and both California Courts and the IRS identify property held in a living trust as an example of property that can generally avoid formal probate. However, the property generally needs to be properly transferred into the trust, and the laws and recording requirements of the state where the property is located should be considered.
Do I need a separate Will if I own property in another state?
Not necessarily. Owning property in another state does not automatically mean you need a separate Will for that state. A comprehensive estate plan can coordinate property located in different jurisdictions, although the appropriate strategy depends on how the property is owned and the laws governing the property.
What is ancillary probate for out-of-state property?
Ancillary probate is an additional probate proceeding that may be required when someone dies owning real property outside their primary state of residence. For example, a California resident who owns real estate in Nevada may have a California estate proceeding as well as a Nevada proceeding addressing the Nevada property. California Courts specifically identifies this additional process as ancillary probate.
Should I put my vacation home in another state into my California trust?
It may make sense for some families, but there is no one-size-fits-all answer. The decision depends on how the property is currently owned, the terms of your trust, the laws of the state where the property is located, and potential tax or property-law consequences. Before transferring an out-of-state property, have the ownership structure reviewed as part of your overall estate plan.
Final Thoughts: Don’t Let Your Second Home Become Your Family’s Second Probate
Owning a vacation home, rental property, or inherited real estate outside California can be a wonderful part of your family’s financial future. But if you own property in multiple states, your estate plan needs to account for the fact that those properties may not all be governed by California law.
The good news is that you have options. Depending on your circumstances, proper trust planning, ownership structures, beneficiary designations, and careful coordination of your real estate can help create a much clearer path for your family.
The important thing is to deal with the issue before your family has to deal with it for you.
For families in Ventura, Ventura County, and throughout Southern California, reviewing your out-of-state real estate should be part of a larger conversation about how your entire estate will transfer. If you own property in multiple states, contact The Heritance Lawyers to review whether your current estate plan actually covers the properties you own today.
Author: Crista Hermance, Esq.
Founding Attorney, The Heritance Lawyers – Ventura, CA
Crista Hermance is the founder of The Heritance Lawyers, a California estate planning firm dedicated to helping families protect their legacies and loved ones. With offices serving Ventura County and surrounding Southern California communities, Crista focuses on family-friendly estate planning, trust administration, and probate guidance.
