Whether you’ve just bought your first home, finished building your dream home, relocated for a career or business opportunity, retirement, or other reasons, moving into a new state can be an exciting and emotional experience. As you begin your next chapter in your new address, there is still one important but often-overlooked task you need to address: Reviewing your Estate Plan and updating as necessary.
Where you’re from and where you’re moving to can have a significant impact on your Estate Plan. Here are the 5 things to keep an eye out for.
- State Laws
If you’re moving to a new home within the same city or state, there’s not much to worry about other than updating your address your property portfolio in your Estate Planning documents. However, crossing state lines is a very different story.
Estate Planning laws can vary from state to state. If you move to a new state, it’s important to have your Estate Plan reviewed by a local attorney to ensure that it meets the requirements of your new state’s laws. For example, Texas is one of the nine community property states and can have certain benefits for your spouse – this should be factored into your Estate Plan.
Additionally, if you own property in more than one state, your Estate Plan may need to be revised to ensure that your assets are properly titled and distributed according to your wishes. Let’s say you moved from a state where joint tenancy with right of survivorship is common to a state where tenancy in common is the norm, you may need to update your Estate Plan to reflect this change.
- Fiduciaries
You may need to check in with the people you have named as your fiduciaries (i.e. executor, trustee, agent under Power of Attorney, etc.), especially if they live in another state. Do they still want to or will they be able to serve in that capacity should the need arise, especially if there is significant distance is involved? You may want to consider naming a new executor or trustee who is closer to your new location.
- Beneficiary designations
If your move has been influenced by a relationship, you may want to review your beneficiary designations for your retirement accounts, life insurance policies, or other assets, as you may need to update these designations after a move. For example, if you named your former spouse as the beneficiary of your life insurance policy, but have since divorced and moved to a new state, you’ll likely want to update your beneficiary designation.
If you got married and moved to a different state with your new spouse to start your life together, you may want to discuss with your Estate Planning attorney about making your spouse a part of your Estate Plan. You should also update contact information of other beneficiaries and ensure that they are still the individuals you want to inherit those assets.
- Healthcare directives
If you have an advance healthcare directive or a living Will, it’s important to ensure that your new healthcare providers are aware of your wishes and that your documents are valid in your new state.
- Digital assets
If you have online accounts or digital assets, you should update your account information and provide your executor or agent with access to these assets, especially if you’ve had to replace them as a result of the move.
Moving homes or changing addresses is a good opportunity to review your Estate Plan and make any necessary updates. And moving to a new state can have an even more significant impact on your Estate Plan.
Let’s talk about moving to Texas. There are many factors to consider when updating your Estate Plan after a move to the Lone Star state. For example, you may need to update your Will or Trust to reflect your new address, review your tax planning strategy, and consider charitable giving opportunities in the local community, and more. It may also have implications for wealth management, real estate, and insurance.
Wealth Management Planning
Wealth management is not just crucial for protecting but also growing the assets you’ve accumulated. This helps you meet current financial goals and potentially build enough wealth to pass down to future generations. If you are moving to Texas, you may want to review your current wealth management plan and make adjustments to take advantage of the local financial landscape and discover opportunities for wealth creation and preservation.
The Law Office of Antoinette Bone, PLLC can help connect you with a highly regarded local wealth management firm or financial advisor that has a deep understanding of the local financial landscape can help you. Our firm can also help you apply the right Estate Planning strategies to make the most of investment opportunities, such as Real Estate Investment Trusts (REITs), in building generational wealth.
Real Estate
Texas is known for its thriving real estate market, with both residential and commercial properties in high demand. In Dallas County for example, as of February 2023, the median home price is valued at $348,000 – an increase of nearly 1.8% year-over-year.
This is a great opportunity to review your real estate holdings and consider selling or purchasing property to better align with your Estate Planning goals. Think selling a property that is no longer necessary or acquiring additional real estate to diversify your investment portfolio.
If you own properties in another state, our experienced Estate Planning attorneys at the Law Office of Antoinette Bone, PLLC can advice you on how owning properties both in a community property state like Texas and other states can impact the transfer of properties in your Estate Plan. We can also introduce you to reputable local real estate agents who can help you navigate the local market and find the right properties for your needs.
Insurance
Insurance is a critical component of any comprehensive Estate Plan, and moving to Texas may impact your insurance needs. For example, you may want to review your homeowners’ insurance policy to ensure that it provides adequate coverage for your new home. Additionally, you may want to explore additional insurance options, such as umbrella insurance, to provide additional protection for your assets. Our firm has reliable local insurance agents in our network who are in the best position to help you determine your insurance needs and finding the right policies to meet them.
Moving to Texas can present many opportunities for wealth creation and preservation, real estate investment, and insurance protection. However, laws can vary from state to state and can have a profound impact on your Estate Plan and how your spouse and other beneficiaries can inherit your estate.
If you or someone you know is making this move, contact the Law Office of Antoinette Bone, PLLC for a comprehensive review and update of your Estate Plan to ensure that it meets the requirements of Texas laws and aligns with your new circumstances and goals. Call us today at (682) 428-3046 to schedule an appointment. We will be glad to assist you in ensuring that your Estate Plan is properly updated to reflect your goals in accordance to state laws.
To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax advisor based on the taxpayer’s particular circumstances.
Nothing in this message is intended to provide legal advice. This message is for educational purposes only.
