Snowbirds and Second Homes in California: What You Need to Know About Estate Planning
For many retirees and seasonal travelers, splitting time between two states is the dream. Whether you’re escaping cold winters in the north or just enjoying California’s beaches, deserts, or wine country during certain times of year, owning a second home in California adds flexibility, lifestyle benefits and estate planning complexity.
If you’re a “snowbird” with property in California, it’s important to understand how that home fits into your overall estate plan. Different state laws, probate rules, and tax implications can affect how your assets are passed on. The good news? With proper planning, you can protect both your property and your peace of mind.
Here’s what you need to know.
Owning Property in More Than One State Can Complicate Probate
One of the biggest estate planning concerns for snowbirds is ancillary probate. This is a second, separate probate process that must happen in any state where you own real estate in addition to the primary probate in your home state.
For example:
If your primary residence is in Arizona, but you own a second home in California, your estate could be subject to:
- Primary probate in Arizona, and
- Ancillary probate in California, just to transfer the second property.
This can lead to extra legal fees, longer timelines, and additional court involvement especially if your estate plan wasn’t set up to avoid it.
How to Avoid Ancillary Probate in California
The most effective way to avoid California’s probate system is to make sure your second home is held in a living trust. A properly drafted and funded revocable living trust can:
- Keep the property out of court
- Ensure a faster, more private transfer to your heirs
- Allow your chosen trustee to manage the property if you become incapacitated
Even if you already have a trust in your home state, you’ll want to work with a California-based attorney to ensure your out-of-state trust is valid here and that the California property is correctly titled in the trust’s name.
Watch Out for Property Tax Implications
California property owners, especially those who own vacation homes need to understand how Proposition 13 and Proposition 19 impact property taxes.
Proposition 13
Limits how much your property’s assessed value can increase annually, keeping tax bills relatively stable over time.
Proposition 19
This law can affect your heirs if they inherit your California property. Unless certain conditions are met (such as moving into the home as a primary residence), the property may be reassessed at full market value potentially increasing the annual tax bill by thousands.
Where Are You Considered a Resident? Why It Matters
If you split time between states, your legal residency (domicile) affects everything from income taxes to how your estate is administered.
California has some of the highest state income taxes in the country. So if you don’t plan carefully, you could be treated as a California resident for tax purposes even if you only spend part of the year here.
To avoid this, make sure you:
- Maintain legal ties (voter registration, driver’s license, etc.) in your home state
- Limit the amount of time you spend in California each year
- Consult a tax advisor about establishing or maintaining domicile elsewhere
It’s also a good idea to have an estate planning attorney review how your multi-state assets are coordinated, so your estate doesn’t end up subject to multiple state laws after you pass.
What Happens If You Become Incapacitated?
Another key reason to integrate your California property into your estate plan is to prepare for potential incapacity. If you become ill or are unable to manage your affairs, someone will need the legal authority to maintain or sell your California home.
Without proper planning, your family may need to go through a court conservatorship process in California, a costly, time-consuming process.
You can avoid this by:
- Creating a Durable Power of Attorney (for finances)
- Including your California home in a revocable living trust
- Naming a successor trustee and healthcare agent who understands your multi-state lifestyle
How Jenkins & Jenkins Can Help
Owning a second home in California is a wonderful privilege but it comes with unique estate planning challenges. At Jenkins & Jenkins, we work with seasonal residents and out-of-state property owners to ensure their California real estate is properly protected.
Whether you need help placing your second home in a trust, avoiding probate, or updating your estate plan to reflect multi-state ownership, we’re here to help you make informed, confident decisions.
Contact us today to schedule a consultation and take the next step toward a complete estate plan that works wherever life takes you whether you’re soaking up the California sun or watching the snow fall back home.
