How to Protect Out-of-State Property with a Living Trust

 Posted on September 19, 2025 in Estate Planning

Owning a vacation home in another state can be a dream come true for a family. Whether you spend summers in Wisconsin, winters in Florida, or holidays at a cabin in Michigan, having a second home creates lifelong memories. But what many families do not realize is that an out-of-state property can complicate matters significantly if it has to go through probate after the owner passes away.

At Gateville Law Firm, our Yorkville, IL estate planning attorney has over 20 years of experience helping clients preserve real estate wealth and protect their families. We offer free consultations to review your estate plan and explain how tools like living trusts can keep your property safe from unnecessary court involvement.

Why Probate Is a Problem for Out-of-State Homes

When you own real estate outside of Illinois, your estate faces a particularly challenging scenario upon your death. While your Illinois-based assets may go through probate in Kendall County, any out-of-state real property must undergo ancillary probate in the state where it's located. This means your family could be dealing with probate proceedings in multiple jurisdictions simultaneously.

Ancillary probate creates several problems for your beneficiaries. First, they'll need to hire attorneys in each state where you own property, multiplying legal costs significantly. Second, different states have varying probate timelines and procedures, potentially extending the settlement process for months or even years. Third, your heirs may need to make multiple court appearances in different states, creating logistical nightmares and additional expenses.

Consider the Johnson family from Yorkville, whose father owned a vacation home in Michigan. After his death, the family spent nearly two years and thousands of additional dollars navigating Michigan's probate system while simultaneously handling his Illinois estate. The difficulty of managing multiple probate proceedings while grieving made an already difficult time even more challenging.

How a Living Trust Helps Second Home Owners

A revocable living trust is one of the most effective ways to avoid probate for out-of-state property. When you create a living trust, you transfer ownership of your assets, including your vacation home, into the trust. You still control and use the property during your lifetime, but legally the trust becomes the technical owner.

Upon your death, the successor trustee you named can transfer the vacation home to your beneficiaries without the need for probate in either state. This keeps the process private, efficient, and under your control.

For example, if you own a lakefront cabin in Wisconsin, placing it in a living trust allows your children to inherit the cabin directly. Without a trust, they would have to open a probate case in both Illinois and in Wisconsin before taking ownership.

Additional Benefits of Using a Living Trust

Avoiding probate is just one advantage. A living trust can also:

• Provide clear instructions for how the vacation home should be managed or shared among heirs.

• Prevent disputes between family members over scheduling, maintenance, or selling the property.

• Plan for incapacity, allowing your successor trustee to manage the home if you become ill or unable to handle financial matters.

• Protect privacy, since unlike probate, trusts are not public record.

For families who want their vacation home to stay in the family for future generations, a trust is a great idea. It can include restrictions against selling or instructions for covering property taxes and upkeep.

Contact a Kendall County, IL Estate Planning Lawyer

If you own a vacation home outside of Illinois, there is no reason to let probate ruin your family’s enjoyment of that property. At Gateville Law Firm, our Yorkville, IL estate planning attorney can help you place your home in a living trust and avoid costly ancillary probate. Call 630-780-1034 today to schedule your free consultation and start planning for the future.