When moving to a new state, most people quickly update their mailing address, driver’s license, and voter registration, but they may not think about updating their estate plan as well. Just as each state has its own rules for licensing, it also has unique laws that can impact your will, trust, powers of attorney, and other estate planning documents.
If you’ve recently moved or are considering a move, be sure to update your estate plan to protect your wishes and provide peace of mind for you and your loved ones. Here’s why it matters.
Assets and relationships may change when you move
If you’re moving to a new state, you may be buying or selling property in the process. Updating your estate plan ensures it accurately reflects your assets and what should happen to them upon your death. Your new state may have different marital property laws than your current state, which is another element to consider when reviewing your plan.
As you’re updating your plan in the new state, you may choose to update your named fiduciaries based on proximity of family members or how your assets are distributed. Be sure to talk with your family about how your move will impact your estate plan and any changes to their role in the plan. Open communication is helpful when discussing your assets and wishes, whether it’s the first time developing your plan or when making changes to an existing plan based on relocating to a new state.
Healthcare documents are often state-specific
Many states have their own specific format for an Advanced Directive, which is the legal document outlining your end-of-life healthcare wishes. Moving across state lines doesn’t invalidate an existing Advanced Directive form, but it is helpful to update your plan with the specific form for your new state, as that’s what local healthcare professionals will be most familiar with. If you have a medical emergency, your healthcare team can quickly review your documents and take appropriate action based on your wishes.
Tax laws and trust laws vary by state
Moving to a new state can impact how your estate is taxed and how your trust is structured. A thorough review of your estate plan by a qualified estate planning attorney can ensure that everything aligns with state law to help minimize any surprises when it’s time to execute your plan.
Even if tax and trust laws are similar for the two states, your plan may reference the state where it was created, which, alone, warrants an update. If the plan indicates that the laws of Oklahoma govern the plan, but you move to Texas and don’t update the language, your family may need attorneys in both states to execute your estate plan when the time comes. Not updating the state referenced in your plan could also subject your assets to taxes in both states.
Any time we have clients moving to a different state, we can help them find a qualified estate planning attorney in their new state to help update their estate plan. We’ve also helped many families who have moved to Oklahoma update their plan to ensure alignment with Oklahoma state law. If you have recently moved or are considering a move, reach out to our team for support.
