Many people are in a state because of work responsibilities. When the time comes for them to retire, they have to move from one state to another to enjoy their retirement years, or they wish to be closer to their families.
Whether you are moving to the next state or to a further one, you need to review your estate plan.
A will that you set up in a different state might not be valid in another, which is why you need to work with an estate planning attorney to come up with a better version.
If you came up with a trust, you must have stipulated the law to govern the trust. Therefore you need to come up with a new one to revoke the previous one.
Amending the estate planning documents in a different state can be a tough task to do, which is why you need to have new documents prepared if they don’t conform to the laws in the new estate. This will make sure the documents don’t have conflicting provisions regarding which law to govern them.
The Power of Attorney (POA)
A POA in one state might not apply to another state. The POA allows you to assign an individual to handle medical and financial transactions on your behalf if you cannot do it on your own.
When you move out of this state, you need to have the POA checked by an attorney to see if it complies with the new state laws.
An estate panning attorney will be able to prepare a supplementary POA to draft provisions that aren’t part of the original version.
Some states still charge death, estate and inheritance taxes on your estate. If your current state doesn’t take this in consideration, the state you move to might have this provision.
It is therefore vital that you consult with an estate planning lawyer the moment you relocate, so that this taxes can be factored into your estate.
The attorney helps you to identify taxes, and then determine the best way to achieve your estate planning goals.
Another issue that might come up is when you relocate from a community property state into a common law state.
The community property state states that any property that you acquire when married is supposed to be shared in half by both spouses, with a few exceptions. Assets that are regarded as separate are the ones that you acquire before marriage.
Common law stipulates that the property that you acquire during marriage doesn’t automatically go to the surviving spouse. Rather, the spouse that that earns money and uses his or her money to buy assets has the right to leave it to a person that they feel like, not necessarily the spouse.
When you move to another state, you have to come up with a new will that defines how the property is shared. If you are moving to a community state, then any property that you move with has to be shared between you and your spouse.
Health Care Directives
These requirements are usually written in conformity with federal law, which means they stand in any state. Each state allows someone to make decisions on your behalf when you are incapacitated.
This means you can retain your directive anywhere you go, unless you need to update it.
However, the only thing you need to do is to get a new document that your healthcare provider is comfortable with.
The names that you put in your will sand trusts remain relevant regardless of the state that you relocate to.
However, it is wise to review the list so that you can edit it as necessary.
Know that Some Documents Have Expiration Dates
Do you know that trusts, wills and other documents eventually expire? Many people have been led to believe that once they complete an estate plan, then that is it.
However, you need to realize that these documents are updated every year, and you need to make sure that you have the latest document holding your information.
Additionally, you need to keep your eyes and ears open for any information on the laws of the state. These might change from time to time, rendering your plan obsolete.
When you come up with an estate plan, you need to keep in mind that it won’t be the same all the while – you need to review and update it. Work with your estate planning lawyer to make sure that your plan is up to date, especially when you are moving to another restate.