Can your estate plan survive a move to another state? Yes and No, states Beck, Lenox & Stolzer Estate Planning and Elder Law, LLC, LLC. The U.S. Constitution requires states to give “full faith and credit” to the laws of other states. As a result, your will, trust, power of attorney, and health care proxy executed in one state should be honored in every other state.
Although that’s the way it should work, the practical realities are different and depend on the document, says Wealth Advisor’s recent article entitled “Moving to a New State? Be Sure to Update Your Estate Plan.”
Your last will should still be legally valid in the new state. However, the new state may have different probate laws that make certain provisions of the will invalid. This can also happen with revocable trusts.
However, it’s not as common with powers of attorney and health care directives. These estate planning documents should be honored from state to state, but sometimes banks, medical professionals, and financial and health care institutions will refuse to accept the documents and forms. They may have their own, as is the case frequently with banks.
You should also know that the execution requirements of your estate planning documents may be different, depending on the state.
For example, there are some states that require witnesses on durable powers of attorney, and others that do not. A state that requires witnesses may not allow a power of attorney without witnesses to be used to convey real estate, even though the document is perfectly valid in the state where it was drafted and signed.
With health care proxies, other states may use different terms for the document, such as “durable power of attorney for health care” or “advance directive.”
Can your estate plan survive a move to another state? We highly recommend you consult with an experienced estate planning attorney like Beck, Lenox & Stolzer to make certain that your estate plan, in general, is up to date. There are also other changes in circumstances—like a change in income or marital status—that can have an impact on your estate plan. Moreover, there may be practical changes you may want to make. For example, you may want to change your trustee or agent under a power of attorney based on which family members will be closer in proximity.
Beck, Lenox & Stolzer practices in Missouri and Illinois. For attorneys in other states, the website for the National Academy of Elder Law Attorneys is a good resource. That website address is naela.org.
Reference: Wealth Advisor (Jan. 26, 2021) “Moving to a New State? Be Sure to Update Your Estate Plan”
