You move away from home for the first time when you make your merry way off to college. After the four years of academics, who knows where life takes you. You may move back to your hometown or take a journey across the country to a completely new state.
Many people in the United States make an interstate move. Some do it to find better work opportunities, while others are in search of a change of pace from the town they have lived in for years.
Whatever the reason, moving to a new state can be an overwhelming task. You will probably have a hundred things on your to-do list and then some. And of course, you can’t forget about whatever unexpected might come your way.
Among all the things that you have to get to, don’t forget about your estate plan. There might be a difference in the regulations around estate planning that you may want to overview and then adjust to ensure your plan is still valid.
In this article, we’ve tried to briefly give you a glimpse of what could possibly change the validity of your estate plan. It is to be noted that these give you a glimpse of what could generally change. There are details involved that you may want your estate planning lawyer to educate you about.
Wills
Wills are undoubtedly the most often chosen form of estate planning around the world and in the United States. The rules regulating the validity and execution of a will are different in every state.
Yes, there are many aspects that are the same but there are some technicalities that can change. One of the biggest differences, mainly for married couples is marital property. States treat marital property differently depending on whether they are common law or community property.
Community property states consider a couple’s property as jointly-owned. On the other hand, in common law states, the property is in the owner’s name. If you are moving from a common law state to a community property state, you may need to make changes to the will.
Secondly, out-of-state executors may be required to fill out a bond saying that they will follow the laws of the new state. Also, probate procedures and laws may also differ from state to state.
Living Trusts
The second most commonly used estate planning tool is a living trust. Similar to the rules regulating wills, things may be different for living trusts. Revocable living trusts should remain valid in interstate moves. The changes that necessitate a review of your living trust include buying and selling of a home. For further clarity, you can talk to a local estate planning lawyer and go over your estate plan.
Power of Attorneys, Healthcare Proxy, etc.
There are some states with rules that allow explicit acceptance of POAs and healthcare proxies. Then there are those states without any clear rules on this subject. This may cause some problems when you present the documents to healthcare providers in your new state.
There are also differences in the language and terms explaining these documents. For instance, healthcare proxies are called healthcare agents in some states. It is better that you find a local estate planning lawyer and take their help in creating documents that work in the new state.
Living Wills
These documents contain your wishes and instructions for medical care decisions for situations where you won’t be able to communicate them. Typically, living wills are applicable across states but that’s not for certain. With differences in provisions, forms, and language, you need to be sure whether they are valid or you need to redraft them.Beneficiary Designations
If you’ve put a lot of thought into your estate plan, it is probably quite comprehensive. Besides healthcare proxy and POA, it contains details regarding pension accounts, insurance policies, retirement, pay-on-death accounts, etc. The plan would clearly state the names of the beneficiaries for these documents as well.As far as these are concerned, the interstate move shouldn’t affect their validity. You do have to ensure that your new address is mentioned in the documents.Final Thoughts
Big life changes are often reflected in other areas of your life. An interstate move is definitely up there. It gives you the perfect opportunity to go over your estate plan and review whether it needs changes.Even if the new state’s laws don’t have an impact on the plan, you can make sure all documents are in order. It’s also a great time to find a local estate planning lawyer and have them review the plan to ensure it’s in accordance with state law so you can be at peace.
