When you live in one state and set up your estate plan there, you have to remember that what you’ve done is protected by that state’s laws. If those laws change or you move to a new place, you need to update your estate plan to make sure that you’re protected.
After putting together a comprehensive estate plan, it would be devastating to find out that moving had invalidated those plans or minimized their effectiveness. That’s why it’s smart to look at your estate plan if you’ve recently moved to Colorado.
Just moved? Here’s what you need to update
To start with, you will need to look at your will, trust documents, assets, power of attorney and health care directives. These are five (and possibly more) primary documents that most estate plans will have and that may be directly impacted by your move.
Wills and trusts
To start with, look at your will and trusts. Make sure that the will is still valid by checking that any references to state law have been updated to your current state laws. You may also need to update your trusts to reflect your new residency.
Estate taxes
Another thing to review is how your estate is impacted by estate taxes. Since all states have different taxation policies, going over this now will help you avoid any taxes that you can and minimize your liability.
Assets
Check that the assets you have listed in your estate plan are all still available and that you did not sell them during the move. Update their location or other information in your planning documents.
Power of attorney
As for your power of attorney, make sure those people are still able to be with you when needed. If the move makes it hard for your old executor to be present, then you may want to select someone new. This is the same for your health care power of attorney since you’ll want someone who can get to you quickly in an emergency.
Health care directives
Finally, update your health care directives to be valid under Colorado state law. You’ll want to make sure that the documents match with the state requirements.
These are a few things to do when you have moved. Updating your estate plan gives you a great opportunity to review it and make sure it’s still offering the best protection.