You Live in New Hampshire but Own a Maine Vacation Home—What Happens to It When You Die?

For many New England families, owning a vacation home in Maine is part of the dream.

Maybe it’s a lake house where your family spends every summer. Maybe it’s a coastal cottage that has been in the family for years. Or perhaps you recently purchased a second home as an investment and a place for future generations to enjoy.

But if you live in New Hampshire and own real estate in Maine, there’s an important estate-planning question to consider:

What happens to that Maine property when you die?

The short answer is: your New Hampshire estate plan may not be the whole story.

Because the property is located in Maine, Maine law can come into play when the property becomes part of your estate.

Your Home Is in Maine, Even If You Live in New Hampshire

Your legal residence and the location of your real estate are two different considerations.

Maine's probate code specifically applies to property located in Maine that belongs to a nonresident decedent.

That means a New Hampshire resident who owns a Maine vacation home may have estate-administration considerations in Maine when they die.

Maine law also provides for proceedings involving nonresident estates and local administration in Maine.

In practical terms, your family may need to deal with Maine-specific estate procedures in addition to whatever administration takes place in your home state.

That’s one reason owning property across state lines deserves special attention when reviewing an estate plan.

What Happens to the Vacation Home?

The answer depends on several factors, including how the property is owned and what your estate plan says.

If the Maine property is owned individually and is part of your probate estate, Maine's probate laws can apply to the property.

Maine law recognizes that, for a nonresident decedent, estate proceedings may occur in Maine concerning property located there.

If you have a valid will, that document can provide instructions about who should inherit the property. If you don't have an effective testamentary plan, Maine's intestacy laws can determine who is entitled to property. Maine law provides that property passes according to a valid will or, in the absence of testamentary disposition, according to the state's intestate-succession rules, subject to applicable rights and administration.

But there is more to consider than simply naming who gets the house.

What If Your Children All Want the Vacation Home?

Imagine you and your spouse own a Maine lake house.

You have three adult children, and you want the property to remain in the family.

That sounds straightforward—but what happens if one child wants to sell, another wants to use it every summer, and another lives across the country?

Without a thoughtful plan, a family vacation property can quickly become a source of disagreement.

An estate plan can give you the opportunity to think through questions such as:

• Who should inherit the property?

• Should multiple family members own it together?

• Should it be sold and the proceeds divided?

• Who will pay property taxes, insurance, maintenance, and repairs?

• Who gets to use the property and when?

• What happens if one beneficiary wants to sell their interest?

• What happens if a beneficiary dies or gets divorced?

• Should the property remain in a trust?

The goal isn't simply to decide who receives the keys.

It is to think about how ownership will actually work after you're gone.

Could a Trust Be Part of the Solution?

Depending on your circumstances and goals, a trust may be one option to consider when planning for real estate.

Trust planning can sometimes help families coordinate how property is managed and distributed while providing a framework for what happens after the original owner dies.

But there isn't a one-size-fits-all answer.

The right approach depends on factors such as the property's value, how it is currently titled, your overall assets, your family situation, your goals for the property, and the laws that apply.

This is especially important when the property is located in a different state from your primary residence.

Don't Forget About Maine Estate Tax

Owning Maine real estate can also raise state estate-tax considerations for a nonresident.

Maine Revenue Services explains that Maine's estate tax can apply to a nonresident who owns real or tangible personal property located in Maine, if the applicable estate-tax filing requirements are met.

For deaths occurring in 2026, Maine's estate-tax exclusion amount is $7.16 million.

That does not mean every New Hampshire resident who owns a Maine vacation home will owe Maine estate tax. The rules depend on the individual's complete estate and circumstances.

However, it is an important reminder that owning property in another state can have consequences beyond simply owning another piece of real estate.

What About a Maine LLC or Trust?

Some property owners consider placing a vacation property into an LLC or other entity.

That can be appropriate in certain situations, but it should not be viewed as an automatic way to remove the property from estate planning or tax considerations.

Maine Revenue Services specifically notes that Maine property held through certain trusts, LLCs, or pass-through entities can still be relevant for Maine estate-tax purposes.

In other words, changing the name on the deed doesn't necessarily mean the estate-planning questions disappear.

The ownership structure should be considered as part of the larger estate plan.

What Should New Hampshire Residents Do?

If you live in New Hampshire and own property in Maine, consider adding a few questions to your next estate-plan review.

1. How is the property titled?

Look at the current deed and ownership structure.

Is it owned individually? Jointly? Through a trust or entity?

2. Who should ultimately own it?

Think beyond the immediate inheritance.

If your children inherit the property together, would they actually want to own it together?

3. What happens if someone wants out?

Consider whether your plan addresses the possibility that one beneficiary wants to sell their interest while others want to keep the property.

4. Who will manage the property?

Someone may need to handle taxes, insurance, maintenance, repairs, utilities, and other responsibilities.

5. Does your current estate plan account for the Maine property?

If you purchased the property after creating your will or trust, make sure your planning documents and ownership structure still work together.

6. Have you considered the Maine-specific implications?

Because Maine law applies to property located in Maine, your estate-planning attorney should consider the property's location when reviewing your overall plan.

Your Vacation Home Is More Than an Asset

For many families, a Maine vacation home isn't just a piece of real estate.

It's where birthdays are celebrated.

It's where grandparents teach grandchildren how to swim.

It's where families gather around a campfire, spend long summer weekends, and create traditions that continue for generations.

That makes planning for the property about more than its financial value.

It is about deciding what you want its future to look like.

Do you want your children to keep it?

Do you want it eventually sold and the proceeds divided?

Do you want future generations to have access to it?

There isn't one right answer.

The important thing is to make the decision intentionally rather than leaving your family to figure it out later.

A New England Estate Plan Should Reflect Your New England Life

Living in New Hampshire while owning property in Maine is common—and it is one of many situations where estate planning can cross state lines.

Your home, family, business, retirement accounts, investments, and vacation property may all need to work together as part of one comprehensive plan.

If you own a Maine vacation home, take some time this fall to review how that property fits into your estate plan.

Because the best time to decide what happens to the family camp isn't after a family member dies.

It's while everyone is together, the decisions are yours to make, and there is still plenty of time to plan.

Protected Roots Law helps individuals and families create thoughtful estate plans based on their unique circumstances, priorities, and goals.

If your life—and your real estate—crosses state lines, your estate plan may need to account for that, too.

Important Note

Estate planning, probate, and estate-tax laws are complex and can change over time. This article is intended for general educational purposes and is not legal or tax advice. The outcome for any particular vacation property depends on factors including ownership, titling, the owner's domicile, the estate plan, and the applicable laws. If you own real estate in Maine while living in New Hampshire, consult qualified legal and tax professionals about your individual circumstances.