Pinnacle Estate Planning

By JASON GRAY

Pinnacle Law PLLC

   Moving to another state can mean a new home, a different lifestyle, and an entirely new chapter. People carefully update their driver’s license, vehicle registration, insurance, mailing address, and voter registration. One important item, however, is frequently forgotten. Their estate plan.

    A common question is whether a will or trust becomes invalid simply because someone moves across state lines. The answer is not always as simple as people expect.  Documents properly created in one state may continue to be recognized after a move, but that does not necessarily mean the old plan is the best plan for the new state.

    Estate planning laws vary from state to state. Different states may have different rules regarding probate, marital property, powers of attorney, health care directives, estate taxes, trust administration, and other important issues. A plan designed around the laws of one state may therefore operate differently after the person establishes residency somewhere else.

    Real estate deserves particular attention. If you move but continue owning property in your former state, your estate may now involve property in multiple jurisdictions. Without appropriate planning, real estate located in another state can potentially create an additional probate proceeding there. One of the reasons people use revocable living trusts is to create a structure that can simplify the administration of property located in multiple states.

    Moving is also a good time to review who has been named in important roles.

Perhaps your financial power of attorney lives near your old home but you now live a thousand miles away.  Maybe the person you selected as successor trustee years ago is no longer the most practical choice.  Modern technology has made distance less important in many situations, but proximity can still matter when someone needs to manage property, communicate with care providers, or respond quickly during an emergency.

    Health care documents should receive particular attention. State laws and forms vary, and medical providers are accustomed to documents that comply with their own state’s requirements. Reviewing these documents after relocating can reduce the possibility of uncertainty when they are needed.

    Taxes may also become part of the conversation. Federal estate tax law applies nationwide, but states can have their own estate or inheritance tax systems. Moving from one state to another can therefore significantly change the tax considerations affecting an estate. For some families, this can create new planning opportunities. For others, it may create issues that did not exist under their previous plan.

    A move is also a natural time to review how assets are titled. A new home may need to be coordinated with an existing trust. New bank or investment accounts may have been opened after the move. Old accounts may have been closed.  Beneficiary designations may need to be reviewed as part of the transition. None of this necessarily means that someone who moves needs to start over.

Often, an existing estate plan provides an excellent foundation. The important step is having it reviewed under the laws of the new state and making whatever adjustments are appropriate.

    People tend to think of estate planning as something tied to their family and assets. It is also tied to geography. Where you live, where you own property, and which state’s laws apply can influence how efficiently your plan works. Moving provides a perfect opportunity to make sure your estate plan has moved with you.

    You would probably never move across the country and continue using an insurance policy that no longer properly covered your home.   Your estate plan deserves the same attention. A relatively simple review after a move can help ensure that the plan you carefully created continues protecting your family in the place you now call home.

*This article is for informational purposes only and should not be construed as legal or financial advice.