Have you recently relocated or are you planning to move to another state? Amidst the logistics of moving, it’s easy to overlook your estate plan. However, different states have unique laws regarding property ownership, taxes, and inheritance. At Axis Estate Planning, we are here to ensure your documents align with your new state’s regulations, providing peace of mind during your transition.
Why an Updated Estate Plan is Essential After a Move
Every year, around 28 million Americans relocate, with nearly 5 million moving across state lines. Moving involves numerous tasks, and updating your estate plan often gets overlooked. Yet, state-specific differences in taxes, property laws, and more mean your existing documents might not be effective in your new home. It’s essential to review and, if necessary, revise your estate plan to ensure it still meets your goals.
Understanding State-Specific Tax Laws
While the federal estate tax exemption is $13.61 million for individuals and $27.22 million for married couples (2024), state exemptions are often much lower. Currently, 12 states and the District of Columbia impose their own estate taxes, while six states have an inheritance tax, and Maryland has both. Without proper planning, your estate could be subject to unexpected taxation. Axis Estate Planning can help you develop strategies to minimize or even eliminate state-specific tax liabilities.
Key Documents You Should Review
Many people assume that estate planning documents like wills, trusts, and powers of attorney are valid nationwide, but this isn’t always the case. Your living will, health care proxy, or power of attorney may not be recognized by your new state’s healthcare providers or courts. For example, a power of attorney drafted in one state might not be accepted in another, potentially leaving your loved ones without the legal authority to act on your behalf.
Reevaluating Your “Helpers”
When you move, it may no longer be practical for your appointed executors, trustees, or agents to serve in those roles. Most states have laws prohibiting non-residents from serving as executors, and even those that permit it often have stringent rules. Selecting a local representative can help avoid delays and ensure your estate is administered according to your wishes.
Consult Axis Estate Planning for a Seamless Transition
If you’ve recently moved or are planning a move, don’t delay in updating your estate plan. Contact Axis Estate Planning at (248) 920-9398 to schedule a consultation and ensure your plan aligns with your new state’s regulations. In addition to one-on-one consultations, we offer a variety of informative workshops and webinars covering essential estate planning topics. These sessions are designed to help you navigate complex legal issues and make confident, informed decisions about your future. Register for our upcoming workshops and webinars on our website or give us a call for more information. Let us assist you in protecting your legacy and providing peace of mind for your loved ones.
