WrenfieldEstate Law

Property transfers

Can a California trust hold property in another state?

Yes, but only once a deed valid in that state has been recorded there. A California trust does not reach across a state line on its own.

Yes — but only once somebody has made it so. A California trust can hold land in Oregon, Nevada, Arizona or anywhere else, and it does not do so automatically because the trust exists and the land is on the schedule of assets.

Property is governed by the law of the state it sits in. To move a parcel in another state into your trust, a deed valid under that state's law has to be prepared and recorded in that state's county. A schedule attached to a California trust listing "cabin, Deschutes County" transfers nothing.

What happens if it is left undone

One out-of-state asset can require its own proceeding in that state after a death — an ancillary probate — running for months alongside the California administration, with its own court, its own timetable and its own lawyer.

The whole of that can usually be avoided in advance by a single recorded document.

How it is done

We prepare the transfer and coordinate with counsel licensed in that state where local requirements call for it. Recording formalities, transfer tax treatment, and the exact form the deed has to take vary more than people expect: what is routine in California can be defective two states away.

The assets that are easiest to forget

The house and the cabin are remembered. These are not:

  • Timeshares. Small in value, disproportionate in trouble, and frequently the only thing standing between a family and a closed estate.
  • Mineral, oil and water rights. Often inherited, often forgotten, often in a state nobody in the family has visited.
  • A parcel bought years ago as an investment, still held in an individual name.
  • Burial plots, which are real property in some states.

The practical test

If you own anything outside California, the question is not whether your trust covers it. It is whether a deed has been recorded in that state's county recorder's office naming your trust as the owner. That is a checkable fact, and it is worth checking this year rather than leaving it for the people who come after you.

The work behind this

Out of state property

A cabin in Oregon does not answer to a California trust unless somebody made it.

Request a free consultation

Also on property transfers

All writing