If you own a lake home in Wisconsin, inherited farmland in Iowa, or split your time between Minnesota and Florida, you've probably wondered: "Do I need a separate will for each state where I own property?"
The short answer might surprise you: No, you don't need multiple wills. But here's the catch – having just one will across multiple states can create a nightmare for your family that's far more expensive and time-consuming than you might imagine.
Let me explain why, and more importantly, show you a better way that could save your family tens of thousands of dollars and months of legal headaches.
The Common Multi-State Property Misconception
Many successful homeowners believe they need a separate will for each state where they own assets. This misconception often comes from well-meaning friends or even some attorneys who don't specialize in multi-state estate planning.
Here's the reality: One properly drafted will can handle assets in multiple states. Your Minnesota will is perfectly valid for your Wisconsin lake home or your Iowa farmland.
But before you breathe a sigh of relief, understand this critical point: valid doesn't mean efficient, private, or cost-effective.
Why a Will Doesn't Solve Your Multi-State Problem
Here's what most people don't realize about wills: A will is simply a set of written instructions to a probate court. It doesn't avoid probate – it guides the probate process.
Think of it this way: A will is like a recipe you leave for someone else to cook your meal. The recipe doesn't cook the meal itself; someone still has to follow the instructions, gather the ingredients, and do all the work.
What This Means for Your Multi-State Assets
When you die owning property in multiple states with only a will, here's what happens to your family:
Example: Meet Bob and Susan from Minnetonka. They own their primary home in Minnesota, a lake cabin in Wisconsin, and a condo in Venice, Florida. When Bob and Susan pass away, their kids discover they need to:
- Open probate in Minnesota (called the "domiciliary" state)
- Open separate "ancillary" probate proceedings in Wisconsin for the cabin
- Open another ancillary probate in Florida for the condo
That's three separate court proceedings, three sets of attorney fees, and three different timelines – all happening simultaneously while managing their own busy lives.
The True Cost of Multi-State Probate
Let's talk numbers, because this is where multi-state probate gets really expensive.
Minnesota Probate Costs and Timeline
In Minnesota, a simple probate typically starts at $6,000 and can go up rapidly from there and takes, on average, 12-16 months.
Minnesota probate timeline:
- 4 months minimum waiting period for creditor claims
- Additional time for asset appraisal, tax filings, and court approvals
- Average completion: 12-16 months for straightforward cases. If you have a taxable estate, assets in more than one state, a business, minor children, a blended family or anything else that is less than straightforward, it can take years and cost substantially more.
Florida Probate Costs and Timeline
Florida probate follows a similar pattern but with its own complexities:
- Attorney fees: typically 3-5% of estate value
- Timeline: 8-12 months minimum
- Additional complications for out-of-state heirs or complex assets
Real-world example: Sarah from Venice inherited her late husband's $1.8 million estate (Minnesota home, Wisconsin cabin, Florida condo). Total probate costs across all three states: $127,000. Total time to complete all proceedings: 22 months.
The Privacy Problem You Probably Haven't Considered
Here's something that shocks most of my clients: Probate is completely public.
When your will goes through probate, anyone can walk into the courthouse (or search online) and discover:
- Exactly what assets you owned
- The value of everything you had
- Who inherited what and how much
- Family disputes or challenges to your will
- Your debts and creditor claims
Think about it: Do you really want your neighbors, former employees, or distant relatives knowing your business? Do you really want every Tom, Dick and Harry crawling out of the woodwork and contacting your kids to help them “spend their inheritance?” Unfortunately, with probate, you have no choice.
Why Trusts Are the Superior Solution for Multi-State Assets
Now let me share the strategy that savvy families and estate planners use: revocable living trusts.
A properly structured trust eliminates the need for probate entirely – in every state where you own assets.
How Trusts Avoid Multi-State Probate
Instead of owning assets in your individual name, you transfer ownership to your trust. When you pass away:
- No probate in Minnesota
- No probate in Wisconsin
- No probate in Florida
- No public records
- No court involvement
- No extended delays
The result: Your successor trustee can distribute assets according to your wishes immediately, privately, and without court oversight.
Real Cost Savings Example
Remember Bob and Susan from earlier? Here's how their situation changes with a trust:
With Wills Only:
- Minnesota probate: $45,000
- Wisconsin probate: $18,000
- Florida probate: $22,000
- Total time: 18-24 months
- Total cost: $85,000
With Properly Funded Trust:
- Probate costs: $0
- Time to distribute assets: 30-60 days
- Privacy: Complete
- Total savings: $85,000
Special Considerations for Florida Residents
If you've recently moved to Florida or are considering making Florida your primary residence, pay attention to these critical details.
Florida's Higher Execution Standards
Florida has stricter requirements for estate planning documents than most other states. What might be valid in Minnesota could be challenged in Florida if it doesn't meet Florida's higher standards.
Key Florida requirements:
- Two witnesses as well as a notary for all documents (Minnesota only requires one in some cases)
- Specific notarization requirements
- Stricter capacity and undue influence standards
The Homestead Protection Advantage
Florida's homestead laws provide incredible asset protection – but only if your documents include the specific language required to maintain this protection when assets are placed in trust.
Without proper language: You could lose Florida's homestead exemption, exposing your home to creditors and lawsuits, not to mention higher property taxes.
With proper drafting: Your Florida homestead maintains its protected status while avoiding probate.
Establishing Florida Residency
Properly drafted Florida estate planning documents serve double duty: they protect your assets AND help establish your Florida residency for tax purposes.
This is crucial if your former state (like Minnesota, with its aggressive tax department) tries to claim you're still a resident subject to their income and estate taxes.
If you would like to discover more about the legal requirements for establishing Florida residency, grab your copy of my book, The Florida Snowbird Guide: A Fast & Friendly Legal Guide for Florida Relocation & Snowbirds. It is available on Amazon, or you can download a digital copy for free by clicking here.
The Multi-State Estate Tax Trap
Even as a Florida resident, you're not off the hook for estate taxes in other states where you own property.
Here's the surprise: Each state can impose its own estate tax on property located within its borders, regardless of where you live.
Minnesota's $3 Million Trap
Minnesota currently imposes estate taxes on estates exceeding $3 million. If you're a Florida resident but own assets subject to the Minnesota estate tax, Minnesota will tax the portion of your estate attributed to that Minnesota property.
Example: Jim moved from Minneapolis to Naples but kept his lake home in Minnesota. Even though he's a Florida resident, Minnesota will impose estate taxes on the portion of his estate represented by the Minnesota lake home.
The Action Plan: What You Should Do Now
If you own assets in multiple states, here's your roadmap:
Step 1: Inventory Your Multi-State Assets
Make a complete list of everything you own outside your primary state of residence:
- Real estate (homes, cabins, land, rental properties)
- Bank accounts
- Investment accounts with local brokers
- Business interests
- Personal property of significant value
Step 2: Calculate Your Potential Probate Exposure
Estimate the total value of assets in each state and multiply by 3% to get a rough idea of probate costs in each jurisdiction.
Step 3: Consider Florida Residency Benefits
If you're spending significant time in Florida, analyze whether establishing Florida residency makes sense for your tax situation.
Step 4: Implement Trust-Based Planning
Work with an attorney experienced in multi-state planning to create a comprehensive trust-based estate plan that:
- Avoids probate in all states
- Maintains applicable homestead and asset protection benefits
- Addresses multi-state tax issues
- Includes proper Florida-specific language if you're a Florida resident
Don't Wait Until It's Too Late
I've seen too many families discover these multi-state complications at the worst possible time – while grieving the loss of a loved one.
The widow in Wisconsin who discovered her husband's Minnesota will meant 18 months of legal proceedings across three states.
The retirees in Venice who thought their 20-year-old Minnesota documents were fine until they learned about Florida's stricter execution and homestead requirements.
The family in Minnetonka who watched $90,000 disappear to probate costs that could have been completely avoided.
Your multi-state assets don't require multiple wills, but they do require sophisticated planning that most general practice attorneys simply don't understand.
The good news? With proper trust-based planning, you can protect your privacy, save your family tens of thousands of dollars, and ensure your assets transfer quickly and efficiently – regardless of how many states you call home.
Ready to protect your multi-state assets the right way? The sooner you act, the more you'll save your family in time, money, and stress. Contact us today at our Florida office at (941) 909-4644 or our Minnetonka, Minnesota office at (763) 420-5087 to schedule your consultation to discuss creating your estate plan or updating your existing one. Or, you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
If you would like to discover more, join us in my upcoming masterclass where I reveal strategies I use with my private clients to help them avoid probate, save on taxes, protect the money they leave for their kids in the event they get divorced, and much more. Click here to sign up.
