Alfred Lee, Taylor Perry & Hannah Werner, MacDonald, Lee & Senechalle, Ltd., Hoffman Estates
847-882-8409 | Email Alfred Lee | Email Taylor Perry | Email Hannah Werner
Fast-Track Out-of-State Real Estate Transfers Without Probate
One of the main benefits of a revocable trust is to avoid multiple probate administrations when clients have out-of-state assets. The key to realizing this benefit is to ensure that the property is actually transferred into the trust. Clients often balk at the cost and expense of engaging out-of-state counsel to handle a property that the client believes does not have a lot of value, e.g., a family cabin in Wisconsin or undeveloped land in Arizona.
If the value of the property is under a certain statutory threshold, other states allow for real estate to transfer without probate administration. See map above where we have found states with some alternative methods of transferring real estate valued under a certain statutory threshold. Here are a few examples:
- Arizona: allows transfer real estate valued under $300,000 via affidavit six months after death (Ariz.Rev.Stat. §14-3971).
- Arkansas: allows real estate under $100,000 to be transferred by affidavit (Ark. Code Ann. §28-41-101).
- Wisconsin: allows real estate under $50,000 to be transferred by filing a transfer by affidavit with the register of deeds in the county where the property is located (Wis.Stat.Ann. §867.03).
In addition, we recommend the following best practices when considering the above.
1. Consult out-of-state attorneys to confirm that the above procedures would work for a client’s assets.
2. Confirm in writing with the client that you are not transferring the real estate into the trust.
3. Advise in writing that laws may change and that it is important for the client to check with counsel on a regular basis (we recommend every five years on a healthy basis).
We find that clients are often relieved when we point to these options. At the same time, a careful practitioner will check in with local counsel and confirm in writing the course of action taken with the client.
For more information about estate planning and probate, see ESTATE PLANNING FORMS AND COMMENTARY: IRREVOCABLE LIFE INSURANCE TRUSTS (IICLE®, 2025). Online Library subscribers can view it for free by clicking here. If you don’t currently subscribe to the Online Library, visit www.iicle.com/subscriptions.