Key Reasons to Update Your Estate Plan When You Move to Florida
Are you in the process of moving from one state to another? Do you have a list of all the things you need to accomplish for the move, for example: purchase a home, hire a mover, and change your mailing address? However, are you aware of an even more important, often forgotten, task that should be on the top of your to-do list when you move to a new state? What is this task? It is updating your estate plan. We would like to take this blog and review with you the reasons why you should update your estate plan when you move to a new state.
We realize that, in all probability, your new home state should honor a will or trust created in another state, but it may not be that straightforward. Many wills and trusts include choice of law clauses which means that the clauses state that the laws of the originating state will dictate the interpretation of your will or trust. Therefore, this means that should your will or trust be disputed by your beneficiaries, the laws of the original state should govern. However, if any of your beneficiaries argue that your new home state laws should apply, probate litigation could begin. A word of caution, this litigation would require the services of attorneys from both your new home state and your originating state.
However, your will or trust may not be contested by family members, but there may be tax issues. Be aware that estate tax exemptions vary from state to state. In your previous state you may have paid an estate planning attorney to draft your will or trust in the most tax friendly manner but your estate could be subject to significant taxes, if it has not been modified in accordance with the laws of your new state.
Now that we have discussed the potential issues with your will or trust in your new home state, it may also be important to realize that the laws regarding powers of attorney can also be vastly different between states. Unfortunately, it is a fact that many financial institutions and healthcare providers may have policies requiring them to only honor powers of attorney executed in their state. If that is the case, it may be very important that these documents are updated to reflect the requirements of the laws of your new home state. Otherwise, these documents may be held invalid, when they are needed most.
We understand that moving to a new state is an involved process. We know that you are and will be extremely busy. Remember, though, to make an appointment to meet with an experienced estate planning attorney in your new home state of Florida as soon as possible.. We know it is a prudent financial move to assure your wishes are honored and your estate plan is in compliance with the laws of your new home state of Florida.
We know this topic may raise more questions that it answers and want to help you plan for the future, and the unexpected. Whether you're young and single or a married five-time great grandparent, your voice and wishes need to be known. Worley Elder Law, based in beautiful Bradenton, Florida, focuses on helping you understand your options in designing your Estate Plan or Elder Law needs. Whether it's preventative incapacity planning or establishing your legacy, we will take the time to explain every option and work with you to create a customized plan just as unique as you and your family are. Please do not hesitate to contact us to let us help you.