The probate process can become very difficult and involved, even in the best of circumstances. For that reason, many families employ estate planning that will avoid the probate process. The need to avoid probate is especially acute when property is held in multiple states.
Why a Trust is Essential If You Own Out-of-State Property
If you own property in more than one state, creating a trust—rather than relying solely on a will—can save your loved ones time, stress, and significant expense after you’re gone.
Why Not Just Use a Will?
Many people mistakenly believe that having a will means their family will avoid probate. In reality, probate is requiredif your estate passes through a will. This court-supervised process involves paperwork, delays, and legal fees—often catching grieving families off guard at an already difficult time.
The Problem of Ancillary Probate
For property owners with real estate or timeshares in multiple states, probate complications multiply. In addition to opening probate in your home state, your heirs will need to initiate a separate ancillary probate proceeding in each state where property is located. Each of these cases requires navigating different legal systems, filing additional paperwork, and hiring local attorneys—all of which adds cost and complexity.
A Better Solution: The Revocable Living Trust
A revocable living trust allows your assets—including out-of-state property—to transfer directly to your beneficiaries without the need for probate. This streamlines the process significantly, reduces legal fees, and avoids the delays of ancillary probate proceedings. In the long run, a trust often proves to be a far more cost-effective and efficient solution.
However, it’s important to note that under Missouri law, assets held in a revocable living trust can still be subject to creditor claims for up to two years after death. An experienced estate planning attorney can help you plan around this and other potential pitfalls.
What About Joint Ownership?
Some people consider adding a child or loved one as a joint owner on property or bank accounts to avoid probate. While this may work in limited situations, we generally advise against joint titling.
Here’s why: if your co-owner is ever sued, goes through a divorce, or faces financial hardship, the assets you’ve titled jointly may be exposed to their creditors. Even well-intentioned strategies can backfire when life takes an unexpected turn.
The same caution applies to investment accounts and life insurance policies. Titling assets individually or in a trust offers more control and greater protection.
Plan Wisely—Protect Your Legacy
Every family is different, and so is every estate. A personalized consultation with a qualified estate planning attorney can help you craft a plan that fits your situation and safeguards your loved ones from unnecessary complications.
These legal topics are provided to you by the President of QMC, Mark Easley. While QMC does not engage in the practice of law, Mr. Easley has practiced estate planning and elder law for over 30 years and is currently the principal at the Elder and Estate Planning Law Firm of St. Louis.