I often get the question from clients about whether they can title out-of-state real estate in their Arizona or New Mexico revocable trust. The answer is yes. In fact, most assets you own should be titled in the name of the trust. This is called funding the trust and most people never complete the funding process.
As far as real estate located in other states, it should be titled in the name of your Arizona or New Mexico trust. There are two main reasons for this. First, if you own property in another state and do not title it in the name of your trust, you run the risk of having to file a probate in each state that you own real estate – this can be very costly and very time consuming. Second, if you are married and your trust is structured correctly, you can benefit from the Arizona community property laws and have the real property treated as community property in the trust, which may reduce potential capital gains taxes.
If you have any questions or would like to schedule your free estate planning consultation, contact us today at 888.222.1328.
Contributed by MH Prescott, Flagstaff and Arrowhead Estate Planning Attorney and Partner David T. Eastman
What the Attorneys of Morris Hall Can Do For You:
The attorneys at Morris Hall have 100’s of years of combined experience ensuring that families’ assets are protected from probate, unnecessary taxes, creditors, ex-spouses and Medicaid spend-down. The attorneys also help those in Arizona and New Mexico to apply for and receive Medicaid assistance and Veterans Benefits. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Cave Creek, Tucson, Prescott, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.