If you have a revocable living trust and decide to move from one state to another, your trust should remain valid in your new state. Though the validity of this trust won’t be affected, you might want to make some changes to it since different states can have different laws regarding things such as marital property. Also, if you are moving into a new home you are buying, you will need to transfer this asset to the trust. Below is more information about trusts and moving a trust to a new state:
Using Trusts in Estate Planning
Revocable living trusts are often used in estate plans to help shelter assets from probate, to protect private finances from public scrutiny, and to provide additional control over the disposition of assets after the owner has passed away. Trusts can save money and time when it comes to settling an estate, and they can help ensure that dependents and charities are supported.
Different states take various approaches to inheritance, but all states treat trusts as valid legal contracts. If you are moving to a new state, you won’t need to draft new trust documents. However, because of the differences in state laws on property and inheritance, you will want to review and potentially modify your trust documents.
Moving a Trust to a New State
Differences between the laws of the state you moved from and the state you are moving to may indicate that a change to the trust provisions is necessary to protect the trust’s original intent.
Estate taxes are one example of how this may be different when moving from one state to another. Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania all impose their own additional estate taxes, so you may want to see how this would affect your estate plan and if you need to adjust your trust as a result.
Also, if you are purchasing a new home, you will want to transfer it to the trust. Otherwise, it will need to go through probate, likely adding additional cost and time to the process of settling your estate.
In next week’s post, I’ll write about how states treat marital property differently as well as other considerations when moving between states.
For help with your estate plan, contact us at Wilson and Wilson Estate Planning and Elder Law, LLC at 708 482 7090 for our main office in LaGrange, Illinois or at 847 656 8958 for our Northbrook, Illinois office.