Owning Property in Other States: Unexpected Legal Issues
Many Montanans own property beyond our state lines — a snowbird condo in Arizona, family farmland in North Dakota, or a family cabin in Idaho. While this can be a wonderful way to build wealth or escape the Montana winter, it also creates a legal issue many people don’t realize until it’s too late: multiple probates.
Multiple Properties Can Trigger Multiple Probates
When someone passes away owning real estate in more than one state, each state has authority over the property located within its borders. That means:
- Montana probate is required for Montana property
- Arizona probate is required for Arizona property, and so on
Each probate is handled under that state’s laws, with its own court procedures, timelines, and requirements. In practical terms, this means:
- Your heirs must hire an attorney in each state
- Your executor must complete court filings in each state and possibly appear before the judge
- Court and county costs and fees are owed in each state
- Longer delays before heirs can access or transfer property
Even for families with straightforward estates, multi‑state probate can become a time‑consuming and expensive process.
How a Trust Can Eliminate Multi‑State Probate
The good news is that this problem is easily avoidable. By placing out‑of‑state real estate into a properly structured trust, the property is no longer subject to probate. Instead, it is administered privately through the trust, under the direction of the trustee you choose.
A trust allows your family to:
- Avoid probate in every state
- Reduce legal fees and administrative burdens upon your death
- Transfer property more quickly and efficiently
- Maintain privacy and control over the process
If you own property outside of Montana, call to schedule a free consultation with one of our attorneys to discuss your options for avoiding probate.
