Have you recently moved to another state or are you considering relocating? Amidst the excitement and challenges of moving, it’s easy to overlook the impact on your estate plan. Different state laws regarding taxes, property, and inheritance can create potential issues if your documents aren’t up-to-date. At Duncan Legal, we specialize in making sure your estate plan is properly revised to reflect these changes.
Why Moving Affects Your Estate Plan
According to the U.S. Census, around 28 million Americans move each year, with nearly 5 million relocating to a new state. With so much on your to-do list, it’s understandable that estate planning might not be a priority. However, variations in state laws mean you should review and update your documents with a knowledgeable attorney to avoid complications later on.
Understanding Estate Taxes in Different States
While the federal estate tax exemption is $13.61 million for individuals and $27.22 million for married couples (2024), many states have much lower thresholds. In fact, 12 states and the District of Columbia impose their own estate taxes, and six states also have an inheritance tax. Maryland enforces both. The good news? With strategic planning, you may be able to significantly reduce your estate’s exposure to these taxes.
Reviewing Key Documents
Contrary to popular belief, a will or other legal document that’s valid in one state may not be recognized in another. This includes important documents such as living wills, health care proxies, and powers of attorney. Imagine a situation where your new state’s healthcare providers refuse to honor a medical directive created in another state. To ensure your wishes are respected, updating these documents is a must.
Selecting New Helpers
Another factor to consider is whether your designated helpers—like executors or agents—can still serve effectively after your move. Most states do not allow non-residents to serve as executors, and even when they do, there are often restrictions. It’s worth revisiting these appointments to ensure the people you trust can carry out their duties without legal hurdles.
Make Sure Your Plan Is Up-to-Date
At Duncan Legal, we understand the complexities of moving and the importance of having an estate plan that reflects your new situation. Contact us at (303) 394-2358 to schedule a review and update of your plan today.
