Relocating to a New State
Trust and estate laws may vary significantly among states in the U.S. If you have a will, living trust, revocable or irrevocable trust, you will want to, at a minimum, review these documents and update them, but in some cases, there may be significant changes warranted by a move to another state. The first thing you should do is contact a TrustAttorneyOnline.com attorney, in the state to which you are moving, to review your documentation and ensure everything is in order before you pack your home.
Treatment of Assets Interstate
Generally, if you die intestate (without a Will) or with a Will, the laws of the State where you die will require a probate legal action to be filed in that State. Generally, the laws of the State where assets are located will govern the property, so that if you reside in Ohio and own real estate in Kentucky, Florida, and California in your own name, then you may be required to open probate legal action in each state where real property is located and death taxes may be applied by that State. This can be a costly and long process for your surviving heirs to undertake. Your estate plan and asset review should be performed by an attorney when you move your residence to another state. If you snowbird or reside in multiple states, then special rules may apply to you. If you hold assets in a legal entity, such as a limited liability company, or a trust, then you can avoid probate legal proceedings.
Living Trusts When Moving to a New State
Your living trust should have been established in your original state of residence and therefore may warrant a significant change. This is especially important if you are purchasing a primary residence in the new state and you are married, as states have different treatment of marital properties in community property States (such as California and Washington) and common law States such as Maryland and North Carolina. It is recommended that after a change of residence, you have an attorney review your living trust and assets to advise you whether revisions are appropriate. Get started by connecting with one of our local trust attorneys today.
Moving to a New State & Your Trust
Trusts are essentially contracts and declare which state’s laws govern the contract. Typically, the laws of the state where the trust is established are initially chosen. If you had a different state interpreting a trust contract established in a different state it may call into question the validity of the trust itself. The ultimate determination is the law of the state in which you are moving to, and how their laws may be different than your state.
For instance, if a resident were to move between community property states, it may not be required to completely change the trust. It may be simply changing the governing state language where concerning trustee powers, trustee authority, and definition of legal terms, but a review will answer that question and more.