Out-of-State Trust Assets in Coral Gables

When you establish a trust in Florida, you are not limited to funding it with assets held within state borders. However, while there are countless options when it comes to the property you use, out-of-state trust assets in Coral Gables can involve additional challenges.

From probate issues to tax implications, there are factors to consider with out-of-state assets that are not currently held in Florida. Our dedicated trusts attorneys could help you review your property and develop a plan that makes sense for your situation.

Why Do Trusts Hold Out-of-State Assets?

The reasons for a trust holding assets outside of the State of Florida can vary, as our Coral Gables attorney could explain. In some cases, it might be as simple as passing down a piece of real estate in another state that has significance. Instead of selling the property and liquidating it, placing it in a trust can greatly simplify the process of transferring ownership from one generation to the next.

This is due in part to the ability to avoid something called ancillary probate. When a person passes away, the assets titled in that persons name alone at the time of their death usually have to go through the probate process. This can be costly and time-consuming, so a lot of people create estate plans to help avoid it. When a person owns property out of state, they may have to deal with probate issues in multiple jurisdictions. Transferring ownership to a trust removes the necessity of ancillary probate.

There could also be tax reasons why property is kept in one state compared to another. While Florida does not have an estate tax, other jurisdictions do. Tax law can quickly become complicated across state lines, making a trust a useful tool for simplifying things.

Out-of-State Estate Plan Complications

There are also issues that can arise in relation to Coral Gables-based trusts with out-of-state property. One obvious issue is the administrative cost that can come with assets kept in a different state from the beneficiaries and trustees. The same can be said for differences in laws that can complicate the job of a trustee. Each state has different requirements for registering, selling, or maintaining certain types of assets, including real estate. This often adds a second layer of potential confusion.

Additionally, there are tax consequences to keep in mind. Assets in other states might trigger income or property tax liabilities that are not present in Florida. Our firm could help you weigh these risks and create an appropriate plan for you moving forward.

Coordinating a Multi-State Plan

Depending on their extent, it may be worth it to consider a trust’s assets in other states while creating your plan. You could appoint co-trustees from both states, ensuring some degree of experience with the laws where these assets are held.

The most important part of this plan is finding legal counsel who is prepared to help you every step of the way. Attempting to fund your trust and draft appropriate documents on your own can be challenging. Give yourself the best chance for success by relying on our team.

Discuss Out-of-State Trust Assets With Our Coral Gables Attorneys

Out-of-state trust assets do not have to be a liability. In some situations, they can even benefit you. What matters most is that you discuss your circumstances with an estate planning attorney before taking any major steps on your own.

With careful planning, you can ensure the administration of your trust goes smoothly even when some property is physically located in other jurisdictions. Contact our firm today to review your options.