So we’re continuing our discussion of why, for the sole purpose of avoiding or minimizing the probate costs of the Canadian snowbird, a trust is likely the best way to own your Palm Springs area home. Remember, probate is the legal process your estate goes through when you die. For the Canadian snowbird who passes away from Vancouver with a vacation house in Indian Wells, there is probably already a probate which must occur back in British Columbia. If at all possible, why make it two? It’s expensive, it can be difficult due to the international component, and can be time consuming (maybe even takes over a year). And by the way, the same analysis holds true for somebody whose permanent residence is in Japan or Germany, or even for somebody whose permanent residence is in Michigan. So if you’re not living permanently in California, you probably would rather avoid a second costly probate (which would occur in California). We will call the second probate in California (the one we’d like to avoid if possible), the “ancillary probate”. Review our last post for an overview of the costs of the California probate process.
Let’s Revisit our Various Forms of Property Ownership, and Review Whether, Upon the Death of a Canadian Snowbird Owner, a California Ancillary Probate is Required.
Property Owned by Individual– If Larry from Vancouver owns, in his name alone, a house in Indian Wells, upon his death a California probate is required to determine who inherits Larry’s Indian Wells house (i.e., so while the rest of Larry’s estate is likely going through the primary probate in process back in BC, the estate has no choice but to also pay for the expensive costs of an ancillary probate in California). As a side note, the California court would likely admit Larry’s Canadian will to determine who to distribute the Indian Wells house to.