A move can be an exciting new chapter in your life — but it can also introduce some new complications that affect your established financial and legal arrangements, including the details of your estate plan. Let’s look at some of the estate plan questions and concerns that you may be facing as you prepare your move.
Are You Moving to a New Location in the Same State?
A move to another neighborhood, city, or county within the same state doesn’t generally cause significant problems for people with estate plans, but you still need to be aware of how even these minor changes can affect your plan’s accuracy. For example, one item, that’s all too easy to forget, is to update the residential address listed on your estate plan documents. This omission can cause some (completely preventable) confusion and annoyance after the fact. It is one of the reasons why I advise my clients to review their estate plan documents at least once a year. That way, a client will be reminded of the need to update their documents. This practice gives clients a chance to revise his/her estate plan documents in accordance with any new information.
You may need to create a new Beneficiary Deed that reflects your change of residence. After all, you can’t transfer a property you no longer own to your chosen beneficiary upon your death. In fact, the Beneficiary Deed becomes null and void if you are no longer the property owner. A new Beneficiary Deed that specifies your new residential property can solve this issue quickly and easily in a short document.
Are You Moving to a Different State?
Moving to a different state brings up a whole new set of potential obstacles, if only because the laws that govern estate plan documentation in one state can easily differ from those in another state. For example, while many Wills and Trusts can survive the transition across state lines with minimal confusion or conflict, you may be well advised to re-examine and revise a couple of key points, including:
- Marital property — Are you moving from a community property state to a non-community property state, or vice versa? Make certain that whatever marital property agreement you have with your spouse will be honored in your new location.
- Choice of Executor — Will your new state of residence require your executor to be a native of that state? If so, you might need to name a different executor who fulfills that requirement.
You may also have to replace your Powers of Attorney documents. Some states accept POA agreements created in other states, while others do not. Some states require combined POA and healthcare directive documents, while others let you maintain separate documents. When these changes need to occur to your estate plan, you will need to engage an attorney who is licensed to practice law in the state that has become your residence.
What about your Arizona assets? You may be allowed to maintain the Arizona Trust you have already created and funded in our state. On the other hand, you might decide to revoke your Arizona Trust and start over with a fresh Trust originated in your new state. The decision may hinge, at least in part, on whether you intend the move to be permanent, the types of assets you possess, was the Trust properly funded to begin with, or how long you plan to remain in your new location. An attorney practicing law in that state will need to review your current documentation and circumstances to determine the most sensible strategy for your needs.
Are You Moving to Another Country?
A move to another country can pose even more questions and concerns for your estate plan. Unlike a typical move to another state, relocation to another country can subject you to vastly different estate laws and conditions. Don’t be surprised to discover that your Arizona estate planning documents and agreements are not considered valid in your new host country. It is often the situation.
This challenge does not mean, however, that you must or should automatically abandon your current Arizona Living Trust, Will, or other estate plan documents. What if you’re planning on maintaining your assets in Arizona even as you purchase real property in another country? What if you only plan to stay in the foreign country for a few years and then return? In these kinds of situations, you may be advised to maintain two separate but complementary estate plans, taking care to ensure that your attorneys in both locations coordinate their efforts and keep you up to date on any changes in local laws or requirements. Just keep in mind that you may have to navigate some complex foreign legal issues, especially if you change your national citizenship at some point.
For other Harrison Law Blog posts which discuss Estate Planning click HERE, HERE, and HERE.
© 2020 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
