Estate Planning for people with homes in more than one state

Many families take these steps first:

1. Listing what they own in each state. That means homes, land, bank accounts, and retirement accounts.
2. Finding their current documents. That means wills, trusts, and powers of attorney, and the state where each was signed.
3. Thinking about which state is their main home. Where they live most of the year matters, and the answer can affect more than the estate plan.
4. Checking how each home is titled. Is it in one name, both names, or a trust? Does it have a beneficiary deed or a transfer-on-death deed?
5. Talking with a lawyer who knows each state’s rules. One review can cover every home and each state’s rules.

Which state’s law applies to my estate?

Mostly, the law of the state you call home. That state is your domicile, the place where you live and plan to stay. If an estate needs probate, the main case is opened in the county where the decedent passed away or owned real property (C.R.S. 15-12-201; A.R.S. 14-3201; Cal. Prob. Code 7051).

Real estate is different. A home may follow the rules of the state where it sits. So a Colorado resident with a condo in Scottsdale deals with both states’ laws.

No state uses one simple test for domicile. Courts look at the facts, like where you spend most of the year, where you vote, where you file taxes, and which state issued your driver’s license. See the key rules for Colorado and Arizona.

Is my will valid in each state?

Usually, yes. Each state accepts a will that was validly signed under the law of the place where it was signed or where the person lived (C.R.S. 15-11-506; A.R.S. 14-2506; Cal. Prob. Code 6113).

The signing rules differ, though. A Colorado will needs 2 witnesses or a notary (C.R.S. 15-11-502). An Arizona will needs 2 witnesses, and a notary alone isn’t enough (A.R.S. 14-2502). A California will needs 2 witnesses who are there at the same time (Cal. Prob. Code 6110).

Arizona also limits who can witness a will signed on or after October 1, 2019. A person who inherits under the will, or a relative of that person, may not be a witness unless the will is self-proved (A.R.S. 14-2505). In California, if someone who gets a gift under the will is a witness, the gift is presumed to come from pressure, fraud, or undue influence, unless 2 other witnesses who get nothing also signed (Cal. Prob. Code 6112). A will that meets each state’s rules can avoid questions later. Read more about wills.

Will my family face probate in more than one state?

It can happen. If you own a home in a state where you didn’t live, your family may need a second, smaller case there. This is called ancillary probate. Each state lets a case be opened in a county where a nonresident owned property (C.R.S. 15-12-201; A.R.S. 14-3201; Cal. Prob. Code 7052).

Personal property is simpler. In Colorado and Arizona, a personal representative appointed in another state may collect things like a bank account 60 days after the death, without a second case (C.R.S. 15-13-201; A.R.S. 14-4201). In California, that personal representative may use California’s small estate affidavit 40 days after the death, if the California property is within its limit (Cal. Prob. Code 12570).

Two common tools can keep a home out of probate. One is a funded living trust. The other is a recorded beneficiary deed. Colorado and Arizona allow beneficiary deeds (C.R.S. 15-15-401; A.R.S. 33-405). California has a similar deed, the revocable transfer-on-death deed. It needs 2 witnesses and a notary (Cal. Prob. Code 5624), and it must be recorded within 60 days after it is notarized (Cal. Prob. Code 5626). Read how to avoid probate in Colorado.

Can one living trust hold every home?

Yes, in general. A living trust can own homes in more than one state. When you die, your successor trustee can manage or pass each home without probate in any of these states.

The key is funding the trust. A home stays outside the trust until a new deed is signed and recorded in the county where the home sits. Our guide on how to fund a living trust explains the steps.

In each state, a trust can be changed or canceled unless it says it is irrevocable (A.R.S. 14-10602; C.R.S. 15-5-602; Cal. Prob. Code 15400). In Colorado, that rule covers trusts signed on or after August 7, 2013. An Arizona beneficiary deed can even name your trust (A.R.S. 33-405), and so can a California transfer-on-death deed (Cal. Prob. Code 5608). Read more about living trusts.

What about community property if we move between states?

Arizona is a community property state. Property either spouse gets during the marriage belongs to both, except gifts and inheritances (A.R.S. 25-211). Both spouses must sign to sell or borrow against community real estate (A.R.S. 25-214). Couples may also hold property as community property with right of survivorship (A.R.S. 33-431).

California is a community property state, too. Property either spouse gets during the marriage while living in California is generally community property (Cal. Fam. Code 760). When a California resident dies, half of the property that spouse got while living elsewhere, which would have been community property in California, belongs to the surviving spouse (Cal. Prob. Code 66, 101).

Colorado is not a community property state. But since July 1, 2023, a Colorado law covers couples who bring community property with them. When a Colorado resident dies, half of that property belongs to the surviving spouse, and half to the spouse who died (C.R.S. 15-20-106).

Moving the other way raises its own questions. If you move from Colorado to Arizona, how Arizona treats what you earned in Colorado is a good question for your first meeting.

Are my powers of attorney and health care documents valid in each state?

Generally, yes. Colorado accepts a power of attorney signed in another state if it followed the law that governs it (C.R.S. 15-14-706). Arizona accepts one validly signed in another state (A.R.S. 14-5501). California accepts one signed under the law of the state where it was signed, or under California law (Cal. Prob. Code 4053).

Health care documents travel too. Colorado presumes a medical power of attorney from another state is valid (C.R.S. 15-14-509). Arizona honors a health care directive that was valid where it was made, unless it conflicts with Arizona criminal law (A.R.S. 36-3208). California honors one signed under the law of the state where it was signed, or under California law (Cal. Prob. Code 4676). Colorado care providers must also honor a MOST form, a set of medical orders, signed in another state (C.R.S. 15-18.7-104).

The signing rules still differ. An Arizona financial power of attorney needs a witness and a notary. A Colorado one needs your signature, and a notary makes it presumed genuine (C.R.S. 15-14-705). A California one needs your signature and either a notary or 2 adult witnesses (Cal. Prob. Code 4121). Some people sign documents that meet each state’s rules, so a bank or care provider in any of them sees a familiar form. Read more about powers of attorney.

What if one of us needs long-term care?

Each state runs its own long-term care Medicaid program. In Colorado, it’s Health First Colorado. In Arizona, it’s ALTCS. In California, it’s Medi-Cal. Each program serves people who live in that state, so where you live when care starts matters.

For 2026, the Colorado and Arizona programs both use an income limit of $2,982 a month for one person. If income is over this limit, there may still be options. In Arizona, an income-only trust may allow ALTCS in some cases (AHCCCS DE-817).

The home equity limits differ: $1,130,000 in Colorado and $752,000 in Arizona, for 2026. In Arizona, the limit doesn’t apply when a spouse or a child under 21 lives in the home (AHCCCS). Ask us how Colorado treats a home where a spouse still lives. Colorado and Arizona both look back 60 months at gifts and transfers (42 U.S.C. 1396p). This is the look-back period.

California’s rules are changing. Since January 1, 2026, Medi-Cal counts property again, with a limit of $130,000 for one person (Cal. Welf. & Inst. Code 14005.62). This limit is set to change on July 1, 2027. Ask us about Medi-Cal’s income rules, how it treats a home, and its look-back.

If you apply for Medicaid while a Colorado beneficiary deed is in effect, you’re still treated as owning the home, and it counts as your resource (C.R.S. 15-15-403). See our elder law page.

How do Colorado, Arizona, and California compare?

For more on small estates, see our guide to small estate affidavits in Colorado and Arizona. For the court steps in each state, see how probate works in Colorado and how probate works in Arizona.