Is a Living Trust Valid in All States?
If you move to a new state, will your living trust remain valid if you already set up a trust in your old state? Do living trusts work the same way in your new state? Should you hire an estate attorney to review your trust when you move?
Keep reading to learn more about what to do about your estate planning documents if you move to a new state.
How Do Living Trusts Work?
A living trust is a trust that you set up and manage during your lifetime. Types of living trusts include revocable or irrevocable trusts. You can amend or cancel a trust if it is revocable, but you can’t alter an irrevocable trust once you create it.
A revocable living trust becomes irrevocable when the grantor (trust creator) passes away. Trust assets and real estate held in trust avoid probate, meaning the probate court won’t have access to trust assets to pay your final expenses, debts, and taxes. Your beneficiaries can receive their full inheritance rather than losing part of it to your debts.
Other Estate Planning Documents to Update After a Move
Because trusts follow contract law, other states will recognize the validity of a trust that is valid in the state where it was created. However, you may wish to hire an estate planning attorney in your new state to review not just your living trust, but also your last will and testament, powers of attorney, and advance directives.
Other estate planning documents vary from state to state and must adhere to the laws in your state of residence. For example, some states require different degrees of approval for advance directives. You may require either one or two witnesses for your advance directives to be valid, and some states require prior authorization for some life-sustaining measures.
Because some states have different requirements, your advance directives may or may not be eligible for a direct transfer in your new home. Contact a new estate planning attorney near you to update your essential estate planning documents.
Should You Update Your Existing Documents or Create New Documents?
For many people, bypassing probate using a trust is the most important part of their estate plan. However, having the peace of mind knowing that your family members know what to do in case of your sudden incapacity is also essential for your quality of life. That why you need a durable power of attorney and advance directives. Additionally, you need a pour-over will to complement your trust after you pass away.
An attorney near you can review all your estate planning documents to ensure enforceability in your new state. If the attorney finds that some of your documents are unenforceable, it could be less costly to have them create new estate planning documents that are valid in your new state.
Contact an Estate Planning Attorney for a Document Review in Southern Maryland
If you’ve recently moved to Southern Maryland and want help reviewing your living trust and other documents, turn to The Law Office of Ralph W. Powers Jr., PC. Call us at 301-627-1000 or contact us online for a consultation.