Originally posted 1/18/20218 and updated 3/07/2022
If you live in one state, but have real property in another state, you’ll probably end up with two probates: one in your home state and another one in the other state. The reason for the second probate is that a state’s courts only have jurisdiction over real property located in that state and has no power over real property in another state.
As an example, let’s say that, when you die, you’re a Washington resident and you own a house here in Washington along with a vacation cabin in Oregon. Your will leaves everything, including both pieces of property, to your only child. Your executor opens a probate here in Washington, and transfers your home, along with all your other possessions, to your child. The one exception is the Oregon cabin. Only an Oregon court can give your executor authority to sign the deed transferring the cabin to your child, so you get two probates – one in Washington and another in Oregon just to transfer the cabin.
So, how do you avoid that second probate, and do you really need to avoid it? The first thing to keep in mind is that, in many states, that second probate can be relatively quick and simple, but in other states, it can be an expensive and drawn-out affair.
If you do want to avoid the second probate, you can establish an entity, such as a trust, LLC, or corporation, and then transfer the condo to that entity. You no longer actually “own” the condo, the entity does, so there’s no probate for the condo when you die.
You can also use some form of automatic transfer, such as transfer on death deed, if the state allows that form of deed.
If you want to use any of these methods to avoid a second probate, you should talk to your attorney. Depending on the state and the method you want to use, there may be tax and other legal impacts.