Moving States Update Your Estate Plan
Moving? Don't Forget to Update Your Estate Plan!
Millions of Americans relocate to new states annually, a significant life change that often comes with an overlooked critical task: updating their estate planning documents. Neglecting this crucial step can lead to unforeseen complications, potentially derailing your carefully laid out wishes, according to experts.
Why Your Estate Plan Needs a Review After Moving
Moving to a different state isn't just about packing boxes; it's also about understanding how your legal affairs, particularly your estate plan, are impacted. State laws governing inheritance, healthcare directives, and powers of attorney (POAs) can vary dramatically. If your current documents don't align with the statutes of your new state, they might become unenforceable, leading to your wishes being ignored and creating unnecessary burdens for your loved ones.
According to a 2025 Caring.com survey, only 24% of Americans have a will, and nearly a quarter haven't updated their estate planning documents since they were first created. Worse, 11% have moved from where their estate plan was originally drawn up. Tasha Dickinson, a trusts and estates lawyer at Day Pitney, emphasizes this, stating, "Documents that might be relied on in time of need -- a healthcare surrogate, living will and POA -- are creatures of state statute." Additionally, differences in laws can affect income tax, state estate or inheritance tax, and marital property rules, making your plan less efficient or favorable for your heirs.
Do You Need All New Documents?
The good news is, there’s no need to shred your existing documents. Legal documents like wills are generally valid across state lines. However, a pragmatic approach suggests having a lawyer in your new state conduct a thorough review. This ensures all nuances of your new state’s laws are considered, preventing potential issues.
Dickinson specifically advises updating "ancillary documents" such as powers of attorney, as these often have state-specific statutory requirements. A local expert can help you navigate these intricacies and make necessary adjustments without requiring a complete overhaul.
Key Estate Planning Items to Revisit
When reviewing your estate planning after a move, several critical areas demand your attention to ensure your intentions remain clear and legally sound.
Property Laws: Community vs. Common Law
One of the most significant differences between states lies in their property laws, which can profoundly impact how assets are owned and inherited. It's crucial to understand these distinctions:
| Feature | Community Property States | Common Law States |
|---|---|---|
| States Included | Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin | All other states |
| Ownership of Acquired Assets/Debt During Marriage | Both spouses have equal ownership rights to all income and assets and debt acquired during the marriage. | Any property or debt acquired during the marriage is owned by the spouse who obtained it. |
| Inheritance of a Jointly Owned House Upon Death | Surviving spouse automatically receives the other half. | Surviving spouse will inherit the house if jointly owned, but can be left to anyone the owner chooses otherwise. |
| Capital Gains Tax Basis for a House | House is revalued at fair market value, or gets a full step-up. | Only the deceased spouse’s half receives a step-up in value. |
It's important to note that once assets are community property, they generally retain that status even if you move to a separate property state, unless couples actively make a change, according to JP Morgan. Conversely, property owned by a married couple relocating from a common law state to a community property state will eventually become quasi-community property, which is basically community property.
Powers of Attorney and Advance Directives
These critical documents, which grant authority for financial and healthcare decisions, typically have state-specific statutory forms. While your existing documents may remain technically valid, using forms recognized by your new state can prevent complications during times of need. For example, your Advance Directives ensure your medical wishes are followed.
As Dickinson notes, "If you need a decision made for you, you wouldn’t want family members potentially arguing with a medical professional about whether they have authority under (an unfamiliar, out-of-state) document." Updating these documents ensures your designated agents can act seamlessly on your behalf.
Executor of Your Will
Your will itself should remain valid, but many states impose restrictions on who can serve as an executor or personal representative. For instance, if you move to Florida and named a non-Florida resident as executor, that person must be a relative or be disqualified. Failing to name a qualified alternative could lead to significant issues and potential delays in settling your estate, impacting your beneficiaries.
Frequently Asked Questions About Moving & Estate Plans
- What is the biggest risk of not updating my estate plan after moving?
The primary risk is that your carefully planned wishes, concerning inheritance, healthcare, and financial matters, may not be legally enforceable in your new state. This could lead to unintended outcomes and stress for your family. - Do I need to create entirely new estate planning documents?
Not necessarily. While wills are often valid across state lines, it's strongly advised to have a local attorney review all documents. Ancillary documents like Powers of Attorney and Advance Directives are often state-specific and usually require updates. - How do state property laws affect my estate plan after a move?
State property laws, specifically whether a state follows community property or common law, dictate how assets acquired during marriage are owned and distributed upon death. This impacts inheritance, ownership rights, and even potential capital gains taxes. - Why are Powers of Attorney (POAs) and Advance Directives so important to update?
These documents are highly reliant on state statutes. Updating them to your new state's specific forms ensures that your designated agents have clear, legally recognized authority to make critical medical and financial decisions on your behalf without dispute or delay. - Can my chosen executor still serve if I move to a new state?
It depends on the state. Some states have residency requirements or specific relationships mandated for non-resident executors. You should verify your executor's eligibility in your new state and name alternatives if necessary to avoid disqualification.
A cross-country move is a big undertaking, but overlooking your estate plan can have lasting and unintended consequences. Take the proactive step to review and update your estate planning documents with a local attorney to ensure your legacy and wishes are protected, no matter where life takes you.
Moving States Update Your Estate Plan
