How to Protect Your Vacation Home from Probate Drama

A beach house in Florida. A ski cabin in Colorado. A lakeside retreat in Michigan.

Vacation homes are one of life’s great luxuries - a place to unwind, create memories, and escape the grind. But if you own property in more than one state, your estate plan needs to do more than simply “pass things along.”

Because without the right planning, that second home could cause your family a real headache after you’re gone.

The Hidden Problem with Out-of-State Property

If your primary residence is in New York, but you own a vacation condo in California. If you pass away with just a will, both states may require separate probate proceedings - one in each jurisdiction. These are called ancillary probate. That means potentially two courts, two sets of lawyers, twice the time and twice the cost. 

What You Can Do

If you want your family to avoid ancillary probate, one option is to place the property in a revocable living trust. This is the most common and flexible way to avoid probate in multiple states. The trust “owns” the home, so when you pass away, it can transfer to your beneficiaries without court involvement.

A second option is to create a limited liability company (LLC). In some cases, especially if the property is rented or shared among multiple family members, placing the vacation home in an LLC can make sense for liability protection, tax planning, and smoother transitions.

We Can Help

We help families who own out-of-state real estate every day. Start by booking a Peace of Mind Planning Session. We’ll answer your questions, go over your options, and present our flat fees. Then, if we decide we’re a good fit to work together, we’ll discuss next steps. And if not, that’s fine too! Mention this article and we’ll waive the $275 session fee. Click on the link to start now!