We get many calls from potential clients immediately asking us to set up a Trust. My next response is to ask them why they want a Trust. Because, as far as I am concerned the bottom line is that not everyone needs a Trust.
If you have looked at our previous videos or articles, you will see we have discussed why a Trust is not needed in every Estate Plan. In Texas, there are a few specific reasons to have a Trust. I’d like to discuss the importance of having a Trust if you own a vacation home or real estate in another state.
Property Outside of Texas
Did you know that even if you are a resident of the state of Texas when you die, if you own real estate outside of the state of Texas, your loved ones need to go through the probate process in EVERY state where property is owned?
Personal or Real Property
When your assets are being defined, if an asset is not real property, it is considered personal property. An example of personal property are bank accounts and personal items. So, vacation homes are considered real property. Therefore, if you died a resident of Dallas County, your loved ones would need to go through the probate process here in Dallas County. However, if you owned a vacation home in Colorado, upon your death, your loved ones would need to retain an attorney in the county and state where the property is located and go through the probate process there as well.
How to Avoid Probate in Another State
To avoid the time, effort, and cost of going through probate in Texas AND in another state, we recommend to our clients that have vacation homes or real estate outside of Texas to create a Revocable Living Trust (RLT). An RLT aims to eliminate the need and hassle to go through the probate process in the state where the vacation home is located.
The Problem with Going Through Probate in Another State
While the probate process in some states may be somewhat smooth, there are other states where this is not the case. There are many states where the probate process can be very costly, confusing, and time-consuming.
So, in order to protect your vacation home or real estate outside of Texas, we recommend considering the benefits of a Revocable Living Trust.
Call our office today at 214-559-7202 or contact us online to speak with one of our experienced Trust Attorneys today.
Although this article focused on vacation homes, for a more detailed discussion and why you may need a Trust, read our article: Do I Need a Trust?