Moving to a new state is exciting! You have a million things to think about, from updating your driver’s license and getting your mail forwarded to enrolling the kids in school. One important thing people often forget is their estate plan. We get asked all the time, “Do I need to update my trust after moving to another state?” For most people, the answer is yes. While your revocable living trust may still be valid after you move, different states have unique estate planning laws that may change how your trust is interpreted, administered, and even taxed.
Will My Trust Still Be Valid After Moving?
Yes! Moving to another state does not automatically invalidate your trust. If your trust was validly executed according to the laws of the state where you created it, it will typically remain valid and enforceable under estate planning law once you move and become a legal resident of another state.
However, “valid” doesn’t mean it can’t be improved. Estate planning is unique in every state. Variances in state laws can impact trustee powers, property transfers, administrative provisions, and tax planning. Your trust could create unnecessary complications for your family down the road if you don’t have it reviewed after moving.
Why Do State Laws Matter?
Each state has different laws regarding trust administration, probate, estate administration, property ownership, homestead protections, powers of attorney, and more. Just because your trust was valid and comprehensive where you lived before doesn’t mean it will serve your family as well in another state. Certain states even have estate or inheritance taxes that others do not.
Your Entire Estate Plan Needs To Be Reviewed
Your trust isn’t the only document that may need updating. Ideally, when you move to another state, you should review all estate planning documents to ensure they’ll work together under the laws where you currently live. Your attorney may recommend reviewing and updating:
- Your durable financial power of attorney
- Your healthcare power of attorney
- Your living will or advance directive
- Your last will and testament
- Beneficiary designations for certain accounts
Reviewing your estate plan as a whole helps prevent inconsistencies between your documents that could cause problems later if someone needs to step in and make financial or healthcare decisions on your behalf.
Don’t Forget About Your New Home
If buying a new home was the reason you moved, make sure your real estate gets titled in the name of your trust too! Just because your old house was properly funded into your trust doesn’t mean the new one automatically is. Once you transfer the deed into your name, title your new house in your trust’s name to avoid probate once again.
Your attorney can prepare the deed needed to ensure your new home is titled according to your overall estate plan.
Review Your Trustees and Beneficiaries
Just because you moved doesn’t mean every aspect of your life remained the same. You may have recently retired, started a new job, gotten remarried, had new grandchildren, or built an entire new support network in your new city. Take the time to review the names included in your estate plan.
Does your successor trustee still live across the country while you now have trusted family members local to your new residence? If so, changing the name on your trust may make practical sense. Beneficiaries should also be reviewed to ensure they align with your current family situation.
Plan for State Taxation
For most Americans, federal estate taxes aren’t a concern. But did you know some states have estate or inheritance taxes too? Your move could have placed you in one of these states. Even if your estate isn’t large enough to be concerned about estate taxes today, your move may have introduced tax planning opportunities that could save your family money in the future.
We recommend meeting with an estate planning attorney to discuss how your move impacts your current trust.
Retirement Is Another Reason To Review Your Estate Plan Goals
We mention moving, but retirement is another common reason people need to update their estate plan. Many retirees move to another state, but whether you relocate or not, retirement is a wonderful time to revisit your estate plan goals.
Perhaps you want to simplify your plan or add grandchildren as beneficiaries. You may want to change charitable giving instructions or plan for your growing long-term care needs. Your financial goals and estate plan should line up. If they aren’t, contact an attorney to discuss your options.
When Should I Review My Trust?
Just because you haven’t moved recently doesn’t mean you shouldn’t update your estate plan. Major life changes and about every three years are ideal times to review your estate plan. Getting married, divorced, retiring, buying a home, selling a home, inheriting property from a loved one, or any changes to state and federal law are just a few reasons to give your trust a second look.
Don’t wait until your family is hurtling through the estate planning process to make changes. By reviewing your trust regularly, you’ll know exactly what needs updating before it can impact your family.
Moving to a new home is the perfect reason to ask yourself, “Do I need to update my trust after moving to another state?” Contact the Patton Law Group to schedule your estate planning review! We’ll make sure your trust and other documents are up to date, valid under your new state’s laws, and continue to serve your family’s best interests for years to come.
