Moving to a new state? It's an exciting time, but it also means it's crucial to take a look at your estate planning documents. Believe it or not, many Americans overlook this critical step, potentially jeopardizing their future plans.
Did you know that each year, millions of Americans relocate to a different state? Yet, they often forget to update their estate planning documents. This oversight can create significant headaches down the line.
According to a 2025 Caring.com survey, a staggering 76% of Americans don't have a will, and almost a quarter haven't updated their estate plans since they were first created. Even more concerning, 11% have moved away from the state where their original documents were drawn up.
But here's where it gets controversial: Inheritance laws, healthcare directives, and powers of attorney (POAs) vary dramatically from state to state. If your documents don't align with your current state's laws, they might not be enforceable. This could mean your wishes aren't followed, and your assets might not be distributed as you intend. Differences in laws can also affect income tax, state estate or inheritance tax, and marital property, making the plan not as efficient and favorable to your heirs.
"Documents that might be relied on in time of need -- a healthcare surrogate, living will and POA -- are creatures of state statute," says Tasha Dickinson, a trusts and estates lawyer at Day Pitney.
Do I need to start from scratch?
Fortunately, there's no need to panic and toss everything in the shredder. Generally, documents like wills are valid across state lines. However, it's wise to have an attorney in your new state review them.
"There are a lot of nuances in state laws that may require attention," Dickinson advises. She suggests updating ancillary documents like powers of attorney.
What should you keep in mind?
Here are some key estate planning considerations, according to experts:
Property: "There’s a big difference between community property state laws and non-community property state laws," says Patrick Simasko, an elder law attorney and financial advisor at Simasko Law. "It’s a really good idea to sit down with a lawyer and have those documents reviewed and make them comply.”
- Community Property States: In these states (Idaho, New Mexico, Texas, California, Arizona, Wisconsin, Nevada, Louisiana, and Washington), both spouses have equal ownership of all income, assets, and debts acquired during the marriage. When one spouse passes away, the surviving spouse automatically receives their half. A house is revalued at its fair market value, so there's no capital gains tax if sold immediately.
- Non-Community Property States: In these states (also known as common law states), property or debt acquired during the marriage belongs to the spouse who obtained it. They can leave it to whomever they choose. If the house is jointly owned, the surviving spouse inherits the house, but only the deceased spouse's half gets a step-up in value.
And this is the part most people miss: Once assets become community property, they generally remain so, even if you move to a separate property state unless you actively make a change, according to JP Morgan. Conversely, property owned by a couple moving from a common law state to a community property state will eventually become quasi-community property, which is essentially treated as community property.
Powers of Attorney and Advance Directives: While your existing documents should remain valid, states often have their own specific forms. "If you need a decision made for you, you wouldn’t want family members potentially arguing with a medical professional about whether they have authority under (an unfamiliar, out-of-state) document," Dickinson notes.
Executor of Will: Your will should be valid from state to state, but states may have different rules about who can be the executor. For instance, if you move to Florida and name a non-Florida resident as your executor, that person must be a relative or be disqualified. "If you didn’t name anyone else who qualifies, then that’s a problem,” Dickinson explains.
This information is a great starting point, but every situation is unique. Consulting with an estate planning attorney in your new state is the best way to ensure your documents meet all the legal requirements and accurately reflect your wishes.
What are your thoughts? Have you recently moved and updated your estate plan? Do you have any questions or concerns about these issues? Share your experiences and insights in the comments below!
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her atmjlee@usatoday.comand subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
