There are many life changes that should prompt you to update your estate plan, and moving is one of them. You may wonder why this is the case. After all, isn’t a legal document in one state valid in another state? Although this is true for the most part, there are several important reasons why you should update estate plans when moving to a new state.
Legal Requirements
Laws relating to wills, trusts, and other estate planning mechanisms can vary from state to state. In fact, this is why attorneys are licensed to operate in certain states rather than nationwide. When preparing your current plan, your estate planning attorney would have taken into consideration federal laws and local state laws. Things like signature requirements, powers of attorney, and medical care directives can vary. It is important to review your plan to ensure that it fully complies with the laws in your new state.
Maximizing Benefits
Because state laws can vary, how you formulate your estate plan will vary as well. In Massachusetts, the estate tax threshold is $1 million. If the state that you are moving from has a lower or higher threshold, or maybe even no estate tax at all, then you should review your estate planning strategy to minimize your exposure. Estate tax minimization is one of the most important reasons to update estate plans when moving to a new state.
Changes to Assets
If you have recently moved, then your real estate assets have also likely changed. How much was your previous home worth? How much is your new home worth? Did you shuffle around any liquid assets to purchase this new home? In most cases, your assets change when you sell or buy real estate. Naturally, your estate plan will need to be updated as well.
How to Update Estate Plans When Moving to a New State
In order to get your estate plan in order, it’s important to contact an estate planning attorney in your new state. If you are new to Massachusetts, the attorneys at Simmons & Schiavo would be happy to sit down with you. We will take the time to review your estate and understand your unique circumstances before providing valuable recommendations on how to best achieve your estate planning goals. Contact us today to schedule a preliminary consultation.