Owning property in different states exposes your estate to probate in that state. If your estate plan, or lack thereof, is set up so that your assets will be going through probate, the main probate will take place in your home state and “ancillary probate” will be opened in every state where you own real property. The “ancillary probate” is called such as it supports or goes hand in hand with the primary probate opened in the home state. This can be quite costly and diminish the size of your estate considerably, along with losing privacy and a fast efficient distribution of your assets. Another issue with owning property out of State or indeed in multiple states, and having an ancillary probate procedure, is that depending on the state in which the property is held, your prior estate planning efforts may be thrown off.
Depending on the state in which the property is held, one way of avoiding ancillary probate is by having a revocable living trust in place, which enables you to retain total control over your property, and its distribution to your chosen heirs, even after you pass on. Another consideration would be to own the property in an LLC. It is always advisable to consult with an estate planning attorney in the state in which your property lies to determine if there are any consequences (reassessments, etc) to transferring any property into an LLC or indeed a revocable living trust.
Owning property out of State can complicate your estate plan. Consult with an experienced estate planning attorney to review your options.