Does Relocation Have an Effect on My Estate Planning?

Relocation can have a significant impact on your estate planning. Whether you’re moving across town or across the country, it’s important to consider how your new home could influence your current estate and those involved in the paperwork. Different states have different rules and regulations that may affect how assets are distributed as part of the estate plan. As such, it’s important to review your own plan and make any necessary changes. These are some of the core elements of your estate influenced by your relocation and what to do to ensure everything’s in order.

Updating Your Beneficiaries

One of the most important aspects of your estate plan is your beneficiary designations. Your beneficiaries are the people (or organizations) who will inherit your assets when you pass on. If you don't have a will or trust, state law will determine who inherits your property, and it may not be who you would choose if you had the opportunity. That's why it's so important to keep your beneficiary designations up to date. If you move to a new state, this classifies as a major life change, and you’ll need to update your beneficiaries accordingly.

Creating or Updating Your Will

Additionally, if you don't already have a will, now is the perfect time to create one. A will allows you to name an executor—the person who will carry out your wishes in the event of your passing—as well as guardians for any minor children you have. You can also use your will to leave specific instructions for how you would like your assets distributed and to whom. This is especially important during a relocation, as you may not have immediate family nearby anymore to discuss these changes with. If you already have a will, it's a good idea to review it periodically to make sure it still reflects your wishes.

Creating or Updating Your Trust

Relocations can have a large impact on your estate planning when it comes to your trusts. A trust is like a will in that it allows you to specify how and to whom you would like your assets distributed. However, there are some key differences between trusts and wills. For one thing, trusts avoid probate—the court process of legally executing a will—which can save time and money for your loved ones after you're gone. Trusts are also used for asset protection and tax planning purposes. If you don't already have a trust, now might be the time to create one—especially if you are moving to a new state with different laws.

Moving to a new home is an exciting opportunity, but don't forget about updating your estate plan! Depending on where you're moving and what kind of assets you have, you may need to make some changes to ensure your wishes achieve enactment after you're gone. This is where an experienced estate planning attorney in Vancouver, WA, can help guide you through the process and ensure all your bases are covered. Reach out to us today to learn more.