Moving to a New State? Update Your Estate Plan

Arizona is a popular destination for people who are considering moving to a new state. According to the U.S. Census Bureau‘s American Community Survey, over a quarter of a million people move to Arizona every year. Nevertheless, since trust and estate laws vary from state to state, an estate plan revision is something worth seriously considering. Call Harrison Law to learn more at (480) 320-2310

Real Estate and Community Property Laws

Arizona is a community property state, which means that married couples moving from an ‘equitable distribution’ state instead of a ‘community property’ state will need to adjust their estate plan to reflect this change.

In Arizona, the assets that either spouse acquires during the marriage are usually jointly owned. This can affect how Arizona will distribute assets after death or divorce. The couple might need to revise their will, trusts, and beneficiary designations accordingly.

Last Will and Testament

Arizona generally recognizes out-of-state wills. However, that doesn’t mean there are not any legal issues that arise from moving to a new state. For example, Arizona allows out-of-state individuals to serve as executors as long as they are at least 18 years old. If the executor lives in New Hampshire, however, will they be willing and able to perform the duties of an executor from the other side of the country?

Additionally, If the will is not self-proved (the witnesses did not sign affidavits), the executor might need to testify in probate court after the testator dies. Since this might be a challenge for witnesses who live far from Arizona, the testator might need to execute a new will with Arizona witnesses.

Arizona does not accept verbal wills, but they do accept handwritten (holographic) wills without witnesses, as long as they are written in the testator’s handwriting, and under specific circumstances.

Power of Attorney and Healthcare Directives

The financial power of attorney and the living will are two critical components of an estate plan.

Financial Power of Attorney

A financial power of attorney (POA) empowers someone else, the attorney-in-fact, to manage the principal’s finances in their best interests if they become incapacitated. It does not apply after the principal’s death.

Since Arizona’s power of attorney law is different from corresponding laws in other states, a lawyer can assist and rewrite a POA after a move to Arizona.

Living Will

A living will (a/k/a a healthcare directive or an advance medical directive) is a document that tells doctors the patient’s preferences for treatment if they become unable to communicate. Although Arizona recognizes out-of-state living wills, it is important to consider consulting with the Arizona Attorney General’s Life Care Planning Packet and the advice of a local law firm such as Harrison Law.

Estate and Inheritance Taxes

Unlike some states, Arizona imposes no estate or inheritance taxes on residents. That doesn’t relieve a taxpayer, however, of any federal tax obligations that might apply.

Trusts

A revocable living trust is one of the most effective ways of keeping assets out of probate after death. This will save beneficiaries time and money. Because Arizona has adopted the Uniform Trust Code, its trust law is similar to that of other states.

Nevertheless, every person should carefully consider the way that Arizona trust laws might interact with its community property laws. For example, Arizona, unlike most states, allows married couples to hold property as community property with the right of survivorship.

Beneficiary Designations

Certain assets, including life insurance policies, retirement accounts, and payable-on-death bank accounts, pass automatically to beneficiaries at death. Make sure to ensure that beneficiary designations remain consistent across all estate planning documents.

Moving to Arizona because of a major life event such as marriage might create the necessity to revise estate planning documents to reflect this event.

Digital Assets

Digital assets include online accounts, cryptocurrencies, online businesses, digital media, and other digital assets. The Arizona legislature has enacted laws governing the disposition of digital assets after death. A revised estate plan should provide for the disposition of digital assets under the laws of Arizona.

An estate planning lawyer can also advise on how to revise an estate plan to account for digital assets. Do not include sensitive information, such as passwords, in public documents such as a will. Include it in a digital assets inventory kept in a secure location such as a bank safe deposit box.

Probate

Arizona has adopted the Uniform Probate Code (UPC), and its probate process is more streamlined than that of some other states. Arizona also offers informal probate, but an estate plan might require modification to take advantage of this process.

Talk to an Experienced Arizona Estate Planning Lawyer

The Arizona estate planning lawyers at Harrison Law can help update your estate plan under Arizona law, just as they have helped hundreds of other clients with various Arizona estate planning concerns. Consider scheduling a consultation with Harrison Law by calling (480) 320-2310.