Do I need a new estate plan if I move out of Florida?
This is a common question that our Tampa estate planning lawyers are asked by clients who are thinking about relocating to somewhere else in the country. In most cases, the answer is yes, you will likely need to do some type of additional planning to ensure that your documents are valid in the new state where you plan to reside.
All estate plans should include these basic documents: a will, a healthcare directive, a financial power of attorney, and guardian nominations if you have minor children. However, these documents are state-specific and may need to change a bit in order to be valid elsewhere in the United States.
However, one document that you may not have to update if you move is a Living Trust. A trust is a legal document that allows a third party (called a trustee) to hold assets on behalf of a beneficiary. Trusts are considered to be contracts that are generally valid in any state. However, you may want to change the way your assets are held in your trust, or create a different type of trust altogether if you face laws that could cause problems for your family in your new state. Again, talk to an attorney before you move for guidance and peace of mind.
Finally, some states have a state-specific estate tax. The exemptions may be lower than the federal estate tax, so even if your family won’t owe Uncle Sam when you pass away, they may be hit with a bill from your new state. Estate taxes can be complicated, so again, touch base with an attorney before you move so that you know what to expect.
The bottom line is that if you are thinking of moving, talk to an estate planning attorney at least 3-6 months in advance so that you have an idea of what you may need to do to update your documents in order to be compliant with your new state. This will give you peace of mind knowing that your documents will be honored wherever you are in the country.