How Do I Plan My Estate in Arizona If I Own Homes in Other States?

You can avoid multiple court cases with one well funded Arizona trust. Here is how it works and what to watch for with real estate across state lines.

Why multi state property changes your plan

Real estate follows the law of the state where it sits. If you die owning property in two or more states, your family may face an Arizona probate and a second case in the other state. That second case is called ancillary probate. The clean way to avoid this is to use a revocable living trust and make sure each property is titled to the trust.

For context on when probate applies inside Arizona, the small estate affidavit limits increased in 2025 to 200,000 dollars in personal property and 300,000 in real property. See the Legislature’s summary of HB 2116 updating A.R.S. § 14-3971.

How one Arizona trust prevents extra probates

Title each property to your trust

Move ownership from you as an individual to you as trustee so the trust, not you, is on the deed.

Deed every house, condo or parcel into your revocable trust. When you die, your successor trustee can sell or distribute property under the trust without opening a local court case in that property’s state. If you prefer to keep title in your name during life, Arizona also allows a transfer at death deed called a beneficiary deed. See A.R.S. § 33-405.

Work with lenders the right way

Transfers of your residence into your revocable trust are generally protected from due on sale enforcement if you remain a beneficiary and occupancy does not change.

Federal law limits a lender’s ability to accelerate a loan when you move title to an inter vivos trust that meets specific conditions. Confirm details with your lender before recording. See 12 U.S.C. § 1701j-3(d)(8).

Practical steps for homes in different states

Use the right deed in each state

Each state has its own deed forms and recording rules. File in the county where the property is located.

Ask a local title company to prepare a deed from you as an individual to you as trustee. Confirm the legal description, parcel number and local recording fees. If a state offers a transfer on death deed, confirm how it interacts with your trust terms and beneficiary choices.

Keep a simple binder for each property

Good records help your trustee act fast and avoid delays.

Include the recorded deed into the trust, last title policy, mortgage statement, HOA contact, tax bill, insurance declarations and any rental agreements. Keep your Certification of Trust with the binder so banks and title companies have short proof without the full document.

Rentals, LLCs and vacation properties

Match ownership to your plan and align insurance with the real owner.

If a rental is in an LLC, assign the LLC membership interest to your trust rather than retitling the deed again. Confirm landlord and liability coverage reflect the correct owner and trustee capacity. Timeshares and club memberships have separate transfer rules. Ask the manager or resort how to update ownership for a trust.

Bank and brokerage accounts

Accounts are not tied to a state. Retitle to the trust or add transfer on death to the trust.

Each institution has its own form. Open trust titled accounts if needed and move balances. Use our Step by Step Funding Guide to check your work.

Retirement and life insurance

Leave retirement accounts in your name and coordinate beneficiary designations with your trust.

Consider spouse first, then the trust as contingent if you want the trustee to manage distributions for heirs. See trade offs in Trusts as IRA or 401 k beneficiaries.

Small estate shortcuts and limits

Arizona raised its affidavit limits in 2025, but other states keep their own thresholds and procedures.

Inside Arizona, the higher limits can simplify transfers that fall below them. They do not change another state’s probate rules. Review the Arizona update here: HB 2116 summary.

Your step by step plan

• List each property with state, county, parcel number and current title.
• Create or update your Arizona revocable living trust with clear distribution terms.
• Deed each property to the trust, or use a transfer at death deed where appropriate in Arizona. See A.R.S. § 33-405.
• Retitle bank and brokerage accounts or add transfer on death to the trust.
• Align insurance, HOA and lender records with the trust and trustee name.
• Keep a Certification of Trust and a simple property binder for quick proof.
• Set a yearly review to confirm deeds, beneficiaries and insurance are current.

For foundations, read Living Trusts Explained and compare documents in Trusts vs Wills. When it is time to move assets, use our Step by Step Funding Guide.

Bottom line for multi state owners

One well funded trust beats two or three probates every time.

If you own property in more than one state, use a revocable trust and make sure each deed matches. That keeps your plan private, shortens timelines and reduces costs for your family.