Massachusetts residents often own real estate in other states. A ski condo in Vermont, a rental in Florida, a family cabin in Maine, or a timeshare in Hawaii introduces a wrinkle many families do not expect. When a Massachusetts resident dies owning real estate in another state, the Massachusetts probate court does not have authority over that property. The state where the property sits (the state of situs) controls how title transfers, and that usually means a separate probate proceeding in that state.
Why Massachusetts Probate Does Not Reach Out-of-State Real Estate
Real estate is governed by the law of the state where it is located. A Personal Representative appointed by the Massachusetts Probate and Family Court has authority over the decedent’s Massachusetts assets, but that appointment does not automatically give the Personal Representative authority to sell, transfer, or refinance real estate in Vermont, Florida, or anywhere else.
The result is a second probate proceeding known as ancillary probate. The Personal Representative must file in the other state’s probate court, usually using a certified copy of the Massachusetts appointment as supporting evidence. The second court then issues its own letters authorizing the Personal Representative to deal with the property located there.
Ancillary probate is not inherently complicated, but it is an additional court proceeding with its own filing fees, its own attorney, its own timeline, and its own creditor claims window. For a family dealing with a single death, it can feel like going through probate twice.
Using a Revocable Trust to Avoid Probate
The most common planning technique for both in and out-of-state real estate is to deed the property into a revocable trust during the owner’s lifetime. Because the trust (not the individual) holds title when the owner dies, the property does not pass through the probate court in the situs state. The successor trustee administers the property under the trust terms, without a court appointment.
The transfer to the trust typically requires a deed prepared in the format accepted by the situs state, signed with the formalities that state requires, and recorded in the correct county land records.
A few states impose real estate transfer taxes or recording fees even on transfers to a revocable trust. Massachusetts generally does not tax a gratuitous transfer to a revocable trust, but other states may, and the analysis is state-specific. Coordinating with local counsel in the situs state before recording the deed is standard practice.
LLC Ownership
Some Massachusetts families hold investment real estate or rental property in a limited liability company instead of a trust. The LLC itself is an entity, and its membership interest is personal property. When the owner dies, what passes is the LLC interest rather than the underlying real estate.
While no ancillary probate is required in the state where the real estate sits, because the owner did not personally own real estate there, the LLC interest still passes under Massachusetts probate. To avoid probate entirely, the LLC interests should be owned by a revocable trust.
State Estate and Inheritance Taxes in Other States
Beyond the probate question, several states have their own estate or inheritance taxes with thresholds much lower than the federal exemption. Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia all have state-level estate taxes as of 2026. Each sets its own threshold and rate schedule. A few states (including Maryland, New Jersey for certain beneficiaries, Pennsylvania, Kentucky, and Nebraska) impose inheritance taxes keyed to the beneficiary’s relationship to the decedent rather than to the size of the estate.
If an individual dies owning real estate in a state with its own estate tax, that state can tax the real estate located within its borders even though the decedent was not a resident. For a Massachusetts resident, the Massachusetts estate tax return computes the tax starting from the federal estate base but excludes out-of-state real and tangible personal property from the Massachusetts credit base. Other states’ treatment of out-of-state real estate varies, and the specific result depends on the situs state’s rules and the residency analysis for each jurisdiction involved.
Timeshares and Vacation Homes
Timeshares deserve a special note. A deeded timeshare (one that conveys a fractional ownership interest in real estate) is treated as real estate and usually requires ancillary probate in the state where the property is located, unless it is owned by a trust. A right-to-use or point-based timeshare (one that gives the owner contractual usage rights rather than a deeded interest) is contractual personal property and will generally be subject to Massachusetts probate, unless the property interests can be placed into trust.
Vacation homes also raise questions about co-ownership among siblings or adult children after both parents die. Families often hold a vacation home in a trust not only to avoid probate but to handle shared use, maintenance contributions, and eventual sale or buyout among the next generation. Without a governance structure, co-owned vacation homes are a common source of family friction.
Coordination With Local Counsel
Coordination with counsel in the state where property is located is usually valuable. Deed formalities, recording requirements, homestead rules, property tax consequences, and state-level transfer taxes vary widely from state to state.
Planning Ahead
Addressing in and out-of-state real estate during life, usually through a properly funded revocable trust, or an LLC owned by a revocable trust, is far less expensive than going through probate in multiple states after death. If you own additional property outside Massachusetts and have not reviewed how it is titled, a review is a practical first step.