In a previous blog we discussed the importance of the Trust being the record owner of your home. In funding living trusts, many people remember their home, however they often forget undeveloped lots and out of state property.
Though lots may not be developed, they do constitute a valuable asset. Remember that to avoid petitioning the court in California, the total value of real property outside of the trust must be less than $20,000. An undeveloped lot, not titled in the trust, could very well be the reason your Trustee has to petition the court and prove that it was your intention to put the property in your living trust.
Out of state properties must also be named in your living trust. Though we cannot transfer the properties for you, as we are only licensed in California, we work closely with attorneys in other states which can facilitate the transfer for you. If an out of state property is not correctly titled in your living trust, your Trustee will have to file probate proceedings in that state, subject to that state’s laws.
The process of petitioning the court, especially a court outside of California, will surely expend unnecessary funds and be inconvenient for your successor trustees. Make sure all real property in California and outside are titled in the name of your living trust.