Relocation can be stressful for an array of reasons, from financial considerations related to moving (such as buying or selling a home and starting a new job) to the emotional impact that the move may have on loved ones. People often move for new and lucrative opportunities and to gain a fresh start on life, but it is essential to make sure that all important issues are taken into consideration before moving, such as the potential impact that relocation may have on an estate plan. There are a number of ways in which your estate plan could be affected by relocating to a different state.
Typically, trusts and wills that are created in one state are recognized in other states. However, it is important to understand that the laws may vary from one state to the next. Moreover, estate-related laws in the state you are moving to may be more favorable with respect to some aspect of your estate plan, and it may be necessary to make changes to your estate plan to take advantage of this situation. For example, you may be able to modify your estate plan to make it more favorable from a tax standpoint.
If you move to a new state, you may be buying property and making other major financial moves that could necessitate a second look at your estate plan. On our wills and trusts page we address some other issues related to modifying an estate plan and it is vital to make sure that you do not overlook this aspect of relocation.