Do You Own Property In Other States? Probate Advice For Landlords

Estate planning includes preparing to take care of yourself when you no longer can, and eventually passing your assets to your loved ones after you pass away. Many assume a will is the only way to pass an inheritance to children or grandchildren. While a will is one important document you may choose, it may not be enough, and there are various ways to leave property to others. If you own property in different states you use as rental income, you may want to consider more than a simple will.

The Probate Process

Probate is the legal aspect of the courts validating the will and ensuring the assets are distributed according to your final wishes. The average probate process in Illinois is 6-12 months. And this can be longer due to delays such as family disputes.  The probate courts will review the will and ensure the executor understands and follows their responsibilities.

Some steps of the probate process are:

• Filing legal opening documents with the courts
• Notifying creditors and beneficiaries
• Paying all debts (and knowing which you don’t have to pay)
• Closing all financial accounts, including banks and investments
• Distributing assets
• Filing final legal documents with the courts

Now you understand why the probate process can take a long time and cost your loved ones money. Plus… a separate probate process must be followed for each state where you own property.

Do You Own Property In Other States?

Suppose your primary residence is in Illinois, but you own vacation properties in Colorado and California. In that case, your family may be subject to the probate process in those states before inheriting the homes. They may also need to hire an attorney in those states to oversee the probate process. As you see, this can become a massive undertaking for your beneficiaries.

If you own property in other states, here are some estate planning tips:

• Consider a trust. With a revocable trust, you maintain control over the assets. And when you pass away, the homes will quickly transfer to the beneficiaries without going through the probate process – in any state.
• You may be able to use a Transfer on Death. Some states allow a transfer on death to be used. This legal document will enable you to name the beneficiary of your home (similar to life insurance). It allows the home to instantly transfer to the beneficiary without going through the probate courts.
• Joint Tenancy. When two people own the home, when one dies, the other automatically assumes full ownership. Joint tenancy can be good, but it can also have some drawbacks.

Sometimes, a will is not enough. You may also want to consider additional or other options when building your estate plan. An experienced probate attorney can help you establish a plan that works best for you, your assets and your loved ones.

Oak Brook Probate Attorney

If you own property in other states and have questions about probate and your estate plan, please contact us to schedule a free consultation. Call us at 630-864-5835 to learn how to protect everything you have worked for.

Areas we serve:  Cook, DuPage, Kane, Lake, Kendall and Will counties