How to Include Real Estate Located Outside Colorado in a Colorado Will
This FAQ-style article explains, in plain language, how a Colorado resident can include ownership of a house located in another state (out-of-state real estate) in a Colorado will, what limitations to expect, and practical steps to reduce delays and extra costs at death.
Detailed Answer
Short answer: You can describe and leave an out-of-state house in your Colorado will, but the property’s location (situs) usually determines which state’s probate rules and courts control the transfer at your death. That often means the will you execute in Colorado will need to be admitted to probate in the other state (ancillary probate) before the new owner can clear title and record the transfer. To avoid or simplify that process, many people use alternatives such as a properly funded revocable trust, transfer-on-death deeds (where available), or joint ownership arrangements.
Why the property’s state matters
Real property is governed by the law of the state where the land sits. If you die owning a house in another state, that state generally controls how title transfers to your heirs or devisees. A Colorado will can state who you want to inherit the house, but the executor will usually need to open either:
- Primary probate in Colorado for your Colorado assets and a separate ancillary probate in the state where the house is located for that real property; or
- Only ancillary probate in the other state, if the other state requires the will to be admitted there to transfer title.
Make sure your Colorado will is valid
To rely on a Colorado will, it must meet Colorado’s execution requirements (formalities). Colorado statutes set formalities for how a will must be signed and witnessed. See Colorado Probate rules and Title 15 (Probate) for details: Colorado Revised Statutes, Title 15 (Probate and Trusts). You can also find helpful probate information on the Colorado Judicial Branch website: courts.state.co.us.
Practical steps to include an out-of-state house in your Colorado will
- Confirm how you own the house. Is it in your name alone, owned jointly with right of survivorship, or held by an entity (LLC)? Title determines whether probate is needed.
- Describe the property clearly in the will. Use the legal description or street address and the county and state where it sits. Avoid vague references. Identify whether you are leaving the property absolutely, subject to mortgage, or to be sold and proceeds divided.
- Choose the type of gift. A specific devise (“I leave my house at 123 Main St., Anystate, to A”) is clear. Also include contingent provisions (if A predeceases you, who takes it?).
- Plan for ancillary probate. Expect that the person who inherits may need to open ancillary probate in the state where the property is located. That will require filing the Colorado will (or an authenticated copy) and following the other state’s procedures to obtain letters testamentary or similar authority to transfer title.
- Consider alternatives to avoid ancillary probate.
- Revocable living trust: Fund the house into a trust and successor trustee can avoid ancillary probate in many states (but you must transfer title now).
- Transfer-on-Death (TOD) deed or beneficiary deed: Several states allow recording a deed that names a beneficiary who receives the house at death without probate. Check if the property’s state offers this option.
- Joint ownership with right of survivorship or tenancy by the entirety (if available and appropriate): Transfers ownership automatically to the surviving owner(s), but these options have other legal and tax consequences.
- Coordinate taxes and mortgages. The house may have mortgages, local transfer taxes, or unpaid property taxes. Estate or inheritance taxes may apply in the other state (or federally for large estates). Consult a tax advisor or attorney about likely costs.
- Get local advice in the state where the house is located. Because each state has different probate rules, deed forms, and timelines, a local attorney can explain whether the out-of-state property will require ancillary probate or whether other planning tools would be simpler.
Typical timeline and costs
Ancillary probate timelines vary by state. Expect additional court filings, possible publication or notice requirements, and attorney fees in the other state. Using a trust or a recorded beneficiary deed (if permitted in the property’s state) can often be faster and less expensive.
When to use a Colorado will vs. another planning tool
Use a Colorado will to control how personal property and Colorado real property pass and to nominate guardians/executors. For out-of-state real estate, a will works but may trigger ancillary probate. If avoiding ancillary probate is a priority, fund a revocable trust or investigate state-specific transfer tools for the property’s state.
Colorado statutory references and further reading
Key Colorado resources on wills and probate: Colorado Revised Statutes, Title 15 (Probate and Trust Law): https://leg.colorado.gov/sites/default/files/2023a_crs_title_15.pdf. For practical probate guidance, see the Colorado Judicial Branch: https://www.courts.state.co.us/. These links provide the statutory framework and court forms or contact points for Colorado probate matters.
Important reminder: Because the property’s state controls title and transfer requirements, consult an attorney licensed in that state for final steps about transferring the house and to confirm whether tools like beneficiary deeds or trusts are available and appropriate.
Helpful Hints
- Always record the full legal description, county, and state of the out-of-state property in the will to reduce ambiguity.
- Ask the county recorder in the state where the house sits whether that state allows a beneficiary deed or transfer-on-death deed for real property.
- If you already own the house jointly with right of survivorship, a will may not control that property—joint title often passes automatically to the surviving owner(s).
- Consider funding a revocable living trust with the property now if avoiding ancillary probate is important; transferring title to the trust during your lifetime avoids probate in many jurisdictions.
- Keep a clear property inventory and copies of deeds and mortgage statements with your estate planning papers and tell your executor where to find them.
- Coordinate estate planning with tax planning. A large estate could face federal estate tax; some states also impose estate or inheritance taxes.
- If you own real estate in more than one state, talk to an attorney experienced in multi-state estate planning to avoid duplication and reduce costs.