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When to review a trust after moving to a new state

All 50 states allow citizens to set up trusts in their estate plans, and they generally recognize the validity of trusts created out of state. Even so, issues could arise after you move to a new state that would warrant a reevaluation of your trust to confirm that it will still meet your estate planning goals. You may need to update your plan because of estate taxes or marital property laws in your new home.

Estate taxes

People with sizable estates would want to find out if they would be liable for estate taxes after moving to a different state. A handful of states collect estate taxes. Changing your residence to a state with its own estate taxes on top of federal estate taxes could require that you redevelop your estate strategy.

Purchase of a new home

You may buy a new home when you move out of state and wish to transfer it into a trust for protection from probate. Your marital status in the new state could alter how you can pass on a home or other piece of real estate. States, like California, that treat all marital property as community property will have limitations on transferring real estate to someone other than your spouse. The real estate is considered jointly held even if only one spouse holds title.

On the other hand, many states allow spouses to hold property separately. These states are known as common law in terms of marital property. In a common law state, placing your new home in your revocable living trust should be routine. Should you get married after moving to a new state, you may want to review how that change in status impacts your trust.


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