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Many Texans own real estate in multiple states, allowing them to spend more time with family members who live in other places, keep businesses running outside of the Lone Star state, or simply to avoid the intensity of the Texas summer heat. However, you might not realize that when you pass away, your property might have to go through probate in multiple jurisdictions. This protracted, costly, and often contentious process can cause issues for the loved ones you are hoping to protect.
Creating a trust can be a constructive way for multi-state property owners to avoid this outcome. Working with an experienced and skilled Texas estate planning attorney can help you understand your options and create a plan that will make the transfer of assets as efficient and effective as possible.
The Challenges of Multi-State Probate
When an individual owns property in multiple states and passes away, their estate will typically need to go through probate in each state where they owned property. This means that the executor of the estate will need to navigate the unique probate laws and procedures of each state, which can be time-consuming and expensive.
The probate process is also public, meaning anyone can access information about the deceased’s assets and debts. This lack of privacy can lead to disputes among heirs and even attract unwanted attention from creditors or potential scammers.
How a Trust Can Help
By creating a trust and transferring ownership of your multi-state properties into the trust, you can avoid many of the challenges associated with multi-state probate. When you pass away, the assets held in the trust will be distributed according to your wishes, without the need for probate in each state.
This can significantly reduce the time and expense involved in settling your estate, as well as provide greater privacy for your loved ones. Additionally, a trust can help you maintain control over how your assets are managed and distributed, even after you are gone.
Choosing the Right Type of Trust
There are several types of trusts that may be suitable for multi-state property owners, depending on your specific needs and goals. For example, a revocable living trust allows you to maintain control over the assets in the trust during your lifetime while still avoiding probate upon your death.
On the other hand, an irrevocable trust can provide additional benefits such as asset protection and potential tax advantages but requires you to relinquish control over the assets once they are placed in the trust.
While trusts are unquestionably effective estate planning tools, they can be difficult to understand without the assistance of a knowledgeable legal professional. Working with an experienced estate planning attorney can help you determine which type of trust is best suited to your unique situation.
Contact the Law Office of Carey Thompson, P.C., Today
Estate planning is a complex and often stressful process for most people. However, if you own property in multiple states, you will need to be particularly aware of the possible complications that might arise for your heirs when you are no longer around. With so much at stake, it is essential to work with an experienced Texas estate planning attorney who can help you understand your options.
The Fort Worth estate planning lawyers at the Law Office of Carey Thompson, P.C. can help you create a trust to meet your goals while protecting your loved ones from the most undesirable outcomes of the probate process. Let us help you achieve the peace of mind you deserve so you can focus on living life to the fullest. Call us today or contact us online for a free consultation to discuss the property you own and how we can help protect it for the benefit of those you love.