You draft a will, set up a trust, and create advanced directives. Will those documents still be legally binding if you move to another state? Usually, yes, but you should still consult an estate plan attorney to confirm that all your documentation follows the new state’s regulations. You may need to make some updates to comply with state-specific estate laws.
Are Your Estate Planning Documents Valid in All States?
The good news is that your estate plan will probably remain legally valid even if you move to another state. However, your new state may have slightly different laws regarding marital property, executor eligibility, probate, and estate taxes.
That’s why you should consult a lawyer in your new location and ensure you’ve tied up any loose ends in your estate plan. For example, you’ll want to confirm that your estate can still bypass probate and check whether you qualify for an estate tax exemption. These details can make life a lot easier for your family in the future.
What To Review in Your Estate Plan
Although estate planning laws may differ from state to state, an out-of-state will or trust is usually still binding, as long as it follows your old state’s regulations. An estate plan attorney should go over the following details.
Will Executor
Some states impose certain rules on out-of-state executors, such as requiring them to appoint a local agent. In Massachusetts, however, any adult US citizen with no felony convictions can oversee your estate administration without such specific requirements. Choosing a local executor is often more practical.
Community Property Rules
The majority of states, including Massachusetts, work under the common law system for marital assets. According to this rule, any asset a married person acquires individually during the marriage remains their separate property unless they agree to hold it together with their spouse.
In contrast, some states, like California and Texas, operate under the community property rule. This principle declares that any asset either spouse gains while married, with certain exceptions, is marital property. Moving from a community property state to a common law state like Massachusetts can affect both ownership during your lifetime and asset distribution rights after death.
Living Trust Validation
As a rule, revocable living trusts remain valid across states. However, you must ensure the trust includes any assets you acquire in your new state, like a house. Additionally, if your appointed trustee lives in another state, you should verify that they can still take on trust administration after your passing.
Beneficiary Designations
A designated beneficiary inherits a certain asset, like an IRA, a payable-on-death bank account, or an insurance policy, after you pass away. Talk to an estate plan attorney to confirm that state laws don’t clash with your beneficiary designations.
For example, in Massachusetts, surviving spouses are entitled to an elective share of their late spouse’s estate, which may include assets with designated beneficiaries.
Estate Tax Implications
Estate tax exemption rules vary between states. In Massachusetts, the current threshold is $2 million. If you move to Massachusetts from a state with a lower estate tax threshold, like Oregon, you may need to restructure your estate to avoid tax implications. For instance, you may transfer assets to an irrevocable trust or gift some of your property.
Moving to Massachusetts? Consult an Estate Plan Attorney
Have you recently moved to Massachusetts or plan to move to MA from another state? Contact us at the Law Offices of Boyd & Boyd, P.C. Our diligent estate plan attorneys will double-check that your will, trust, and other legal documents follow state requirements. Call us at (508) 444-9688 or book an appointment online.
