How Does Your Estate Plan Travel When You Move Out of State?

November 10, 2021 by Autumn Bryant

When you move, there are always a bunch of tasks to do: forwarding your mail, updating your address with financial institutions, and many other essential updates. Your estate plan should be on this moving “to do” list as well!

When you move, there are always a bunch of tasks to do: forwarding your mail, updating your address with financial institutions, and many other essential updates. Your estate plan should be on this moving “to do” list as well!

Revocable Living Trusts

When moving to another state, Revocable Living Trusts are one of the documents that transfer easily to a new state. However, each state has different state specific laws. For example, Indiana does not currently have an inheritance tax; however, there are many states that do have an inheritance tax. It is still important to seek counsel to ensure that state specific issues are covered in your trust.

Last Will and Testament

Every state has law regarding the execution of a Will and what makes a valid document. Some states, such as Indiana, recognize valid Wills from other states; however, this is not an automatic acceptance of an out of state Will. The process entails opening a probate with the county court in which the decedent passed, and a judge must determine if this out of state Will is valid and accepted. When moving to another state, it is always a good idea to update your Will.

Health Care Directives

Health Care Directives are often accepted, but different states have different code requirements for advanced directives. The issue of acceptance of these documents lies with the hospitals instead of the court. Health Care Directives are often used in emergency situations, so you do not want to give an out of state directive to an institution who is not familiar with a foreign directive. For ease of administration and ensuring that the hospitals efficiently follow your directives, you will want to update your Health Care Directives (including a Living Will and Health Care Power of Attorney) to the state specific format.

Financial Powers of Attorney

Like Health Care Directives, if you move to a different state, the issue of whether a Financial Power of Attorney being accepted lies in the hands of the financial institution you are working with; therefore, you want to provide an Indiana state specific Power of Attorney that the institutions will recognize. It is also important to note that some financial institutions do not accept Financial Powers of Attorney that are older than 5 years. Therefore, it is always a good idea to “renew” your Financial Powers of Attorney when you move as well.

Our Indiana Clients Who Move to Other States

Over the years, we have clients who have moved to other states to pursue job opportunities, retire in warmer locations, and relocate closer to their families. We have been able to continue to serve our clients as they transition by use of co-counsel in the relocation state to ensure state specific needs are met in their estate planning documents. We have grown our ePlanning program to assist clients with the help of co-counsel in about 19 different states and conduct meetings and updates over videoconferencing.

Moving to Indiana?

If you are relocating to Indiana, we are here to assist you in updating your estate plan and reassessing your plan. We offer a free workshop and a no obligation consultation in order to educate, get to know each other, and discuss your estate planning goals and needs.