Does Moving to Another State Affect Your Estate Planning?

Moving to another state can be both exciting and challenging. Between buying a new house, settling kids into new schools, changing healthcare and insurance providers, and finding your favorite new restaurants, you’re juggling countless details all at once. One important detail you might not be thinking about, though, is your estate plan. 

Even if you have worked with an experienced attorney to put together a detailed estate plan, it’s always a good idea to review that plan any time you experience a significant life event like getting married, having a baby, buying or selling a home, receiving an inheritance, starting a business, filing for divorce, or moving to a new state.

Laws related to several aspects of estate planning (e.g., wills, estate taxes, probate, etc.) vary from state to state and can significantly affect the validity or execution of your established estate plan. Below, you’ll find some examples of specific areas of estate planning that should be reviewed by an estate planning attorney in your new state of residence.

Is an Out-of-State Will Valid?

Although a properly written and executed will should be considered valid from one state to the next, there could be some potential discrepancies that might interfere with the execution of the will and complicate and prolong the probate process. For instance:

• Many states recognize holographic, or handwritten wills, as valid, but others do not. 

• Some states have specific requirements about witnesses when a will is being executed for it to be considered valid. Many states require at least two witnesses, but some do not require any. Sometimes, the witnesses need to be “disinterested” (i.e., not a beneficiary). 

• Requirements about having the will notarized or being dated also vary from state-to-state.

State-Specific Tax and Property Laws

State-specific laws related to inheritance and estate taxes can vary widely. In fact, some states don’t have any inheritance or estate taxes. So, moving to a state that does have estate taxes could have a significant impact on your estate planning overall. You might need to restructure assets, including setting up or adjusting trusts and arranging for gifts and charitable donations to help minimize the tax impact.  

In addition, understanding whether your state of residence is a community property state or a common law property state might affect spousal and family inheritance rights and require some adjustments in how you structure your assets in your estate plan. 

Probate Process

The probate process can look very different across state lines. You will want to be prepared by knowing what the thresholds, court procedures, and requirements are for your state. Also, if you have designated an executor who does not live in your current state of residence, some states might require you to change to someone local who will be better able to administer your estate. Or, your designated executor might be unwilling to administer your estate in a new jurisdiction.

Get Help From Estate Planning Experts

If you have moved to California from another state, or if you are a California resident who has not yet gone through the estate planning process, the attorneys at Lonich Patton Ehrlich Policastri can help! We have years of experience in guiding clients through the process of preparing wills, setting up living trusts, assigning power of attorney, litigation, probate, and more. Call us today at 408-553-0801 to schedule a free 30-minute consultation to get started. Let our team help protect your family’s future.

 

Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.