Issues with estate planning when moving to a new state
New arrivals to Colorado should have their estate plan reviewed by an attorney
Moving to a new state brings with it many new challenges and opportunities, not least of which is planning for a new financial future. What many people forget, however, when they move is how their new state’s laws may affect their current estate plan. According to The Spectrum, failing to consider estate planning when moving to a new state could have serious repercussions later on. Each state has different laws related to wills, trusts and other estate planning issues, and a will that was written in one state may come into problems when interpreted in a new state.
Wills still valid, but interpretations may differ
It is important to realize that simply because a will or trust was written in another state does not mean it will not be considered valid in the state a person moves to. A will that is valid in one state is just as valid in another state. The problem, however, comes when a will relies on the laws of one state that conflict with the laws of the new state.
Community and separate property
A very important consideration when moving is whether matrimonial property laws are similar between the person’s old state and new state. Like most other states, Colorado is a separate-property state, meaning that property and assets acquired during marriage are still considered the separate property of each spouse. However, there are ten community-property states, including California, Nevada, and Texas, where assets acquired during marriage are considered to be shared equally by both spouses.
As Forbes points out, anybody moving from a community-property state to a separate-property state should have their estate plan reviewed by an attorney. For example, if a couple moving from California to Colorado would rather maintain their assets similarly to how they were maintained under California’s community-property laws, then they will likely need to have their will modified by an estate planning attorney.
Estate planning and moving
New arrivals to Colorado will want their move to be as smooth and problem-free as possible. To avoid any unwanted surprises, one of the first things somebody who has just moved to Colorado should do is have their estate plan reviewed by a qualified and experienced law firm within the state. With expert legal guidance, anybody with an estate planning issue will have the assurance and advice they need to properly prepare for their family’s future.