Moving to a new state can be difficult whether you are doing so because of a job change, wanting to be closer to family, looking for better weather, or wanting better access to health care. Because of the difficulty that comes with moving to a new state, many people do not think about updating their estate planning documents to meet the laws and receive the benefits that their new state has to offer. However, if you have a high income, are planning on selling a significant asset, or looking to retire, moving to a state that has low or no income tax could save you a significant amount of money.
Additionally, updating your estate planning documents when moving to a new state also ensures that a hospital will not reject or take days to approve your power of attorney documents. This saves your family time if they need to have access to your financial assets. Additionally, it could also be crucial to your health if you become incapacitated and need immediate medical care. Common estate planning documents that you should update when you move to a new state include:
- Last Will and Testament
- Revocable Trusts
- Financial Powers of Attorney
- Healthcare Powers of Attorney
While each of these documents should be updated if you are moving to a new state, below are the most important reasons why you should do so.
Revocable Living Trusts
When moving to a new state, it is important to update any revocable trusts that you may have. This ensures that you comply with any new state laws. If you do not update your revocable trusts, transferring your assets after you pass away could be much more difficult. Furthermore, if you are moving from a high tax to a low tax state, updating these documents ensures that you are receiving the estate tax benefits of your new state. So, while you should update your revocable trust documents before you move, it is imperative that you do so once you are in the new state.
Power of Attorneys
When you move to a new state, it is crucial to update your power of attorney documents. A medical or financial power of attorney document is usually honored in different states than where it was signed. However, if you are hospitalized in a different state then where you created your healthcare power of attorney document, the hospital you are in must review the document in a more scrutinizing way. This is potentially detrimental as it could delay the time it takes for you to receive crucial medical care.
Similarly, if you became incapacitated and your spouse or someone in your family needed to take money out of a bank account yet you did not update your financial power of attorney documents, it will take longer for this process to occur. Finally, depending on where you move, there may be differences in the way marital property is treated. Understanding how your new state treats marital property is important as it could change the type of trust you create.
Final Thoughts
Overall, it is extremely important that you consult an attorney in the state you are moving to. Doing so allows you to update each of your estate planning documents and maximize the potential benefits of doing so. With over 20 years of experience, Antonoplos & Associates estate planning attorneys have the knowledge and experience required to assist clients moving to DC, Maryland, and Virginia with legal issues that may occur from updating their estate plans. Furthermore, Peter Antonoplos, founder and managing partner of Antonoplos & Associates has an LLM in Taxation from Georgetown University Law Center. With this knowledge, Peter can maximize the estate tax benefits you receive if you move to DC, Maryland, or Virginia.
Contact our DC Law Office for More Information
Finally, for more information on updating your estate plan when you move to a new state, contact us at 202-803-5676. You can also directly schedule a consultation with one of our skilled attorneys. Additionally, for general information regarding estate planning, check out our blog.