Estate Planning Tips When Moving Out Of State
If you are considering moving to a different state, it’s crucial to remember that relocation may bring some unexpected changes to your estate plan. From updating your will to reviewing your power of attorney, it’s suggested to use these tips before moving out of state.
Executor Of The Will
When moving out of state, it’s wise to review your existing estate plan to ensure the will’s executor remains valid. It’s required that the executor must reside in the state where you own property. If you relocate, you should find an individual who lives in your new state to serve as executor. If you end up selecting a non-resident executor, this person may need to post a bond to act on behalf of the estate. Always research state laws regarding executors prior to moving.
Marital Property
It is also important to investigate the laws governing marital property, as they may vary from state to state. In community property states, the law assumes that all assets acquired during the marriage are equally owned.
Whatever is acquired or earned after the wedding date will be divided between the two spouses upon divorce or death. In common law states, each spouse owns their assets and liabilities separately unless there is some agreement that specifies otherwise.
Power Of Attorney
Power of attorney allows individuals to assign someone the authority to handle their legal and financial matters if they are incapacitated. The person you choose must be trustworthy and loyal, as they will have power over your finances and assets.
Each and every state will feature its own rules for power of attorney documents, so consult an estate planning attorney and update any necessary paperwork. If you choose to move to another state and fail to address any changes, it may not be valid in your new state.
Consider using a durable power of attorney, as this option usually lasts longer and stays in effect even if the individual granting it becomes physically or mentally incapacitated. This power of attorney could be especially helpful if you are moving far away from family.
Are Wills Valid From State To State?
If you have an existing will in one state that outlines how you would like your assets to be distributed upon your death, it’s possible that your wishes will not be valid in another state.
This will also apply to trust documents and other parts of estate planning, including naming an executor of the will, as well as identifying a power of attorney for medical and financial decisions. Make sure you review your will to account for all of your new state’s laws.
Is A Living Trust Valid In A Different State?
Typically, a living will is valid in any state. However, there are some differences in how states will interpret and apply laws relating to these trusts.
For instance, some states will have specific requirements for who can serve as a trustee or who needs to be notified when transferring assets into a living trust. Ensuring that your living trust meets these requirements will keep it valid legally.
If you move out of state, your estate plan may need some updating from a tax perspective. Different states may have separate tax thresholds and tax treatments for specific types of assets outlined in an estate plan.
Source:
- (2023, May 18). Moving Out Of State? Time To Review Your Estate Plan. Retrieved May 07, 2024, from https://www.applegate-dillman.com/insights/moving-out-of-state-time-to-review-your-estate-plan
Speak With Our Estate Planning Attorneys In Phoenix, Arizona Today
Estate planning is the right thing to do for the people you love. It’s another way to say “thank you” to those who love you. Some of the decisions are hard, but at Ogborne Law, we will help you navigate these difficult decisions.
Your Arizona estate planning attorney can help you select a will or trust or both. Your estate solution will work for you. You will have the peace of mind that comes with effective planning for the future. Call 602.343.1435 or contact Ogborne Law with questions.
