Last week I started writing about moving trusts from one state to another. In today’s post, I’ll share a few more things to consider if you are moving from one state to another, including the way states may treat marital property differently.
States Treat Marital Property Differently
Although most states are common law states which allow marital property to be owned separately, there are several community property states. In community property states, all of the property owned by marital partners is deemed equally shared, including property that is only titled in one spouse’s name.
If you are married and are moving from a common law state to a community property state, this can affect your legal authority to bequeath property to people other than your spouse. If you’re moving from a community property state to a common law state, it’s also a good idea to review your trust and make sure everything will still work as you intend.
Other Trust Planning Considerations
Even if your trust doesn’t need to be revised after you move from one state to another, there are other parts of your estate plan that you’ll want to revise or update. Your banks, brokerages, financial institutions, and insurance companies will need to be notified of your new address.
You’ll also want to make sure to update addresses for any beneficiaries who are moving with you. Make sure any trust documents, insurance policies, retirement accounts, and other documents are updated if needed.
A trust created in one state is valid in any other state. However, because of differences in jurisdictions, you may want to review and make changes to your trust. For those who are married and moving from a common law state to a community property state (or vice versa), it’s especially important to review your trust and see what changes may need to be made to ensure your trust will still work as you intend.
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.