Issues with Estate Planning When Moving to a New State

There are so many things to keep in mind when moving out of state. Did we give ourselves enough time to pack? Did we inform all the right people and places? When do I need to get a new driver’s license? Will we need new health insurance? Will the kids like the new school? Oh, I guess we’ll need new voter registration cards, too.

This (admittedly still incomplete) list is full of important things to remember for those relocating to a new state. But don’t forget about your wills and trusts.

It probably took a long time and maybe a fair bit of money to set up your estate plan. And it can be tempting to think that our estate plans will remain viable from the date they’re filed until the day we pass on. However, if we move out of state, we need to be aware that differing state laws may change things.

How Might Interpretations of an Estate Plan Differ from State to State?

While the majority of your estate plans should still be well and good in a new state, it is important to understand that differing state laws could result in differing interpretations of your will and trusts. Property laws can vary with each state. And some states have common law marriage, which could be affected by a move to a state that does not. Some states have different laws regarding health care directives and powers of attorney.

Colorado is a separate-property state, meaning that property and assets acquired during a marriage are still viewed, legally, as separate property for each spouse. However, some other states are community-property states, wherein property and assets obtained during the marriage are viewed as equally shared between the spouses.