Moving to a New State? Here’s Why You Must Review Your Estate Plan

September 14, 2025
Paramus Estate Planning

Relocating to a different state involves more than just hiring movers and updating your address — it can significantly impact your estate plan. That’s because wills, trusts, powers of attorney, and other estate planning documents are governed by state law, and those laws vary widely. Property ownership rules, spousal rights, probate procedures, and tax implications can all change once you cross state lines.

Whether you’ve already moved or are planning a move, reviewing and possibly updating your estate plan is essential to ensure your wishes are carried out efficiently, accurately, and without unnecessary costs or surprises for your heirs.

Below, we outline the top 10 legal and financial issues to review after an interstate move, highlight key state differences, and offer practical steps to keep your plan up to date.

Top 10 Estate Planning Issues to Revisit After Moving to a New State

1. Will Validity and Execution Requirements

Each state has different rules about what makes a will valid — including the number of witnesses required, whether notarization helps, and if handwritten (holographic) wills are recognized. A will valid in your old state may not meet the formalities in your new state, potentially leading to challenges or delays.

2. Community Property vs. Common Law Property

Property ownership during marriage differs depending on the state.  Community property states (like California, Texas, and Arizona) treat most assets acquired during marriage as jointly owned, while Common law states generally treat property as individually owned unless titled jointly.  However, some states allow Tenancy by the Entirety, where spouses jointly own property as a unit — which affects creditor protections and estate transfers.  Moving between these systems can alter what’s considered yours vs. your spouse’s, impacting inheritance and control.

3. Spousal and Heir Rights (Elective Share Laws)

Many states have laws that protect spouses or children, allowing them to claim a share of your estate even if your will says otherwise. These rights differ dramatically by state, so an existing estate plan could be invalidated or overridden after a move.

4. Probate Laws and Procedures

Some states have simplified, low-cost probate processes, while others are more expensive, complex, and time-consuming. Moving from a “simple probate” state to one with a more burdensome system might prompt the need to revise your plan to avoid probate altogether (e.g., through trusts).

5. Trust Law Variations

Trust rules aren’t the same everywhere. Some states follow versions of the Uniform Trust Code (UTC), while others have their own laws that affect how trusts are created, taxed, or enforced. Key differences can include trustee duties, creditor protections, and  tax treatments. After moving, these variations may require adjustments to trust language or strategy.

6. Ancillary Probate for Out-of-State Property

If you own real estate or other titled assets in multiple states, your estate may face ancillary probate in each state. Planning tools like revocable living trusts or LLCs can help avoid this.

7. Healthcare Directives and Powers of Attorney

States often have different requirements for durable powers of attorney, healthcare proxies, and living wills. Hospitals and banks may be reluctant to honor out-of-state forms. It’s wise to execute new documents using your current state’s forms.

8. Medicaid Planning and Long-Term Care

While Medicaid is a federal program, each state has its own rules for eligibility, asset protection, and spend-down requirements, in addition to state-specific or nonprofit long-term care programs. Moving without adjusting your plan could jeopardize benefits or increase long-term care costs.

9. State Estate, Inheritance, and Gift Taxes

Estate and inheritance tax laws vary widely. Some states have no estate tax, while others have low exemption thresholds or additional taxes. Moving between states can have major tax implications for your heirs.

10. Residency Audits and Tax Exposure from Your Former State

When you move to a new state, especially from one with high income or estate taxes (like New York, California, or New Jersey), your former state may challenge your new residency status — particularly if you still own property there, maintain business ties, or spend significant time visiting.

Failing to formally and legally change your domicile can result in dual-state tax liabilities for you or your estate — an expensive and avoidable mistake.

Real-Life Examples: States with Notable Estate Planning Differences

State Key Considerations
California Propositions 13 and 19 dramatically impact property tax and inheritance. Long-held property may have low tax bases that are lost upon transfer to children unless carefully planned.
Florida Offers strong homestead protections, which can override your will or trust. Florida’s rules on property transfer, asset protection, and residency-specific planning are among the most unique in the U.S.
Louisiana Follows civil law traditions with rules like forced heirship that require leaving a portion of your estate to certain heirs. Its legal system differs from the rest of the U.S. and needs special attention.
New York Home to many co-ops, which are not automatically transferable at death. Transferring a co-op may require board approval, and trusts often need special drafting to be valid for co-op ownership.

What to Do After Moving: 8 Practical Estate Planning Steps

1. Consult a Local Estate Planning Attorney

Even if your documents are legally valid, a local professional can help identify state-specific issues or recommend necessary changes.

2. Update Core Documents

Redo or revise:

  • Wills

  • Trusts

  • Powers of attorney

  • Advance healthcare directives and Living Wills

This ensures compliance with local law and avoids confusion in emergencies.

3. Review Asset Titling

Confirm how your home, bank accounts, and investment accounts are titled — and make updates as needed to align with your goals and your new state’s laws.

4. Check and Update Beneficiaries

Review designations on:

  • Life insurance

  • Retirement accounts (IRAs, 401(k)s)

  • TOD/POD accounts
    Make sure they reflect your wishes and comply with state-specific rules.

5. Plan for State-Specific Taxes

Evaluate whether your new state has estate, inheritance, or gift taxes — and whether your existing estate plan addresses them appropriately.

6. Account for Spousal and Heir Protections

If your plan excludes or limits what a spouse or child receives, verify that such provisions are allowed under your new state’s laws.

7. Address Out-of-State Real Estate

If you still own property in your previous state (or elsewhere), consider placing it in a revocable trust or LLC to avoid ancillary probate.

8. Schedule Periodic Reviews

Revisit your plan every few years or after major life changes (marriage, divorce, children, large inheritance, etc.) — and stay informed about evolving state laws.

Conclusion: Don’t Let State Lines Derail Your Estate Plan

Moving to a new state can unintentionally disrupt your estate plan. Laws governing wills, trusts, probate, taxes, and healthcare directives vary significantly — and what worked in one state may not function properly in another.

To avoid legal complications, delays, or unexpected outcomes for your loved ones, it’s best to review and update your estate planning documents with an attorney licensed in your new state. A small amount of effort now can protect your wishes — and your family’s financial future — down the road.

Categories