QUESTION
Can I set up living trusts in two separate states?
Asked on Feb 27th, 2014 on Estate Planning - Colorado
More details to this question:
Hi. I already have a living trust set up, and I want to set up a second one in another state to divide the assets between the 2 trusts. Can I do that?
13 ANSWERS
Edwin K. Niles
Yes, but why? A trust entered into in one state is valid in another state. Having two trusts sounds like confusion down the line.
Answered on Mar 03rd, 2014 at 11:42 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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You can, but you may not need to. A trust can hold property in a number of states and or countries. Having two trusts may be more administrative work and costs than you want or need, as well.
Answered on Mar 03rd, 2014 at 11:42 PM
Yes, you can although it usually does not make much sense.
Answered on Mar 03rd, 2014 at 6:51 PM
Probate Attorney serving Palatine, IL
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Law Offices of Robert H. Glorch
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You can have all the trusts you want. The real question is what the purpose of the trusts is and whether setting up this way best meets your estate planning needs. Discuss this with your estate planning attorney(s). As a general rule, there's no legal reason why a single trust cannot hold real property in multiple states.
Answered on Mar 03rd, 2014 at 6:50 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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You can even do 2 or more in the same state. And you can hold property in state A in a state B trust. But only 1 can be your principal residence.
Answered on Mar 03rd, 2014 at 6:41 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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I suppose, but why? The trust can own property in any number of states. All you are doing is complicating your life. If you want part of the trust to go to one person and part to another, then just amend your trust to do that. And in Idaho, trusts to avoid probate are not necessary unless you have more than $5.25 million in assets. The cost of probate in Idaho is minimal, as is generally the cost of probate attorneys.
Answered on Mar 03rd, 2014 at 6:40 PM
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Sure, you just want to be sure that pour over Will is clear to which trust it pours. You should only have one Will.
Answered on Mar 03rd, 2014 at 6:40 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Yes, although it is suggested you see an estate planning attorney to help you accomplish your objectives.
Answered on Mar 03rd, 2014 at 6:40 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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You can create multiple trusts and distribute assets between the trusts as you choose. It is not really necessary unless you want different trustees for different property and avoid a hierarchy of trustees. Different property can be dealt with separately within a single trust and special trustees with powers only over particular property can be appointed within a single trust.
Answered on Mar 03rd, 2014 at 6:23 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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That's not a good idea. One of the only benefits of a trust is that it can be effective to transfer property in two states. Your question makes me think you need a lawyer's assistance with your estate planning.
Answered on Mar 03rd, 2014 at 6:22 PM
2 Awards
Legally you can but it is not recommended as it is generally not necessary and can lead to more confusion than anything.
Answered on Mar 03rd, 2014 at 6:18 PM
Neal Michael Rimer
You can create multiple trusts. I believe it would be better to have your existing trust done with enough detail to allow your successor trustee to handle all the dispositions you desire and avoid other potential complications by having multiple trusts. One person being responsible for all tax filings, notices, accountings, and other communications to beneficiaries would avoid problems that could otherwise exist. It is more complicated to have one trust do multiple things.. but, if done correctly, by someone who can draft well, one trust is best.
Answered on Mar 03rd, 2014 at 6:17 PM
Yes, but you should consult with an attorney specializing in trusts before proceeding as you may not be accomplishing what you expect.
Answered on Mar 03rd, 2014 at 5:07 PM