What happens if you own real estate in a state in which you do not live? If you own a second home, rental property, or any other real property out of state (even time shares), it is very likely that you will be involved in a probate proceeding in each such state. This process is called ancillary probate. Ancillary probate costs your estate more money and impedes the probate process. Additionally, an ancillary probate administration may thwart some of your currently established estate planning goals. There are ways, however, to organize your estate, including your out of state properties, to streamline your asset distribution process after death and side step the ancillary probate process. One possible strategy for avoiding an ancillary probate is to place the out of state real property into a revocable trust. No matter the state in which you create the revocable trust, it is recognized in all 50 states. Another possible strategy is to place the real property in a business, such as an LLC. Both these options should be discussed with a knowledgeable estate planning attorney to determine which best suits your needs.