Estate planning is one of those things that sounds formal and expensive, exclusively reserved for millionaires with 20 mansions and 11 private jets. But in reality, estate planning is just another way of saying, “Here’s what I want to happen with my stuff (and my loved ones) if something ever happens to me.” But what happens if you make a trust or a will, and then move? Or what if you have property in another state?
Let’s dive into estate planning across state lines, why it matters, and what you absolutely must keep in mind to make sure your wishes are honored no matter where life (or work, or love) takes you. Whether you’re a snowbird with a vacation home in Florida or a bi-coastal business owner, we’ve got you covered!
How estate planning laws can vary state to state
Every state has its own estate planning laws. That means what is required in New York might not be required for an estate plan in Texas. Here are just a few of the ways estate laws differ by state:
- Wills: Most states require witnesses, and a few require notarization. Some accept handwritten (“holographic”) wills, others don’t.
- Probate: The probate process (i.e., the court process of validating a will and distributing assets) can be lengthy and expensive in some states and streamlined in others.
- Marital Property Laws: Community property states (like California) treat property acquired during marriage very differently from equitable distribution states (like New York).
- Estate & Inheritance Taxes: Some states have estate taxes. Some don’t. A few have inheritance taxes. Most don’t. It’s a toss-up!
The big takeaway here is that estate planning laws vary from state to state, so it’s important to understand what the laws are in each state.
You moved states…do you need to create a new and updated estate plan?
Let’s say you have an estate plan in Illinois but recently moved to North Carolina. Should you toss it all out? No—you most likely will not need to throw out your will or trust (thanks to the Full Faith and Credit Clause, which honors state laws across borders). In addition, many states have explicitly carved out statutes stating that they will comply with estate plans drafted in other states, as long as they were executed properly in the original state. (See Texas Estates Code § 251.053). However, it’s always prudent to speak with a new estate planning attorney in your new state to do a review and ensure continuity.
What happens if I don’t change my estate plan after moving states?
When you move to a new state but don’t update your estate plan, your estate will be handled by your new state’s courts but governed by your old state’s laws. While local attorneys and judges will do their best to interpret and apply those laws correctly, they might not be as familiar with all the nuances as someone who regularly practices in the state where your documents were originally drafted. For example, bank tellers at your local bank may not be familiar with the financial power of attorney language from your other state, which may cause delays.
While updating your estate plan after moving states is not always legally required, it can save you and your loved ones potential headaches down the road.
Why you should annually review and potentially update your estate plan anyway
Even though you may not technically need to update your estate plan when you move to a new state, you should still review your estate plan every year, whether you’ve moved or not. Reviewing things like your beneficiaries, your asset inventory, and your bequests is important because life changes. Think of a scenario where one of your beneficiaries dies, you gain new family members through birth, marriage, or adoption, or your relationship with your family members changes over time or with age. You’ll want to update these things anyway. So, even if you don’t legally need to update your trust or will, it may be smart to do so anyway. And while you’re at it—speak with a lawyer to make sure that your estate plan is compliant with state laws, which do sometimes change over time.
How estate planning laws vary across states
Estate planning laws do vary across state lines, even though states will generally recognize out-of-state estate plans. For example, California has stricter rules than Texas regarding witness presence for formal wills. (See California Probate Code § 6110 and Texas Estates Code § 251.051). Another example is through executor rules—in Florida, you cannot have an out-of-state executor (unless related), whereas in New York, you can. (See Surrogate’s Court Procedure Act § 707 and Florida Statute § 733.304).
Other ways estate planning laws can vary across state lines:
- Requirements for a valid trust
- Probate processes and laws
- Power of attorney laws
- Advance healthcare directive laws
- And more.
While it’s important to understand that state laws do differ, you can rest assured that generally your will or trust will still hold in another state as long as you executed it properly in the first state.
What if you own property in multiple states?
The main issue with owning property in multiple states is the potentially tedious probate processes. When you have a will with multiple properties across state lines, loved ones could end up dealing with something called ancillary probate—basically, a probate process in each state where you own property. This is NOT ideal, as it can be stressful, tedious, time-consuming, and require legal assistance in each separate state.
Here are a few ways to avoid ancillary probate:
- Create a Trust: By placing property into a trust, you avoid probate in every state. Yes, even your cute little lakeside cabin in Michigan.
- Transfer on Death (TOD) Deeds: Some states allow you to transfer real estate directly upon your death, without probate.
- Joint Ownership with Right of Survivorship: This can be a simple option for spouses or co-owners, though it comes with other considerations. This allows the surviving owner to automatically inherit the house without probate.
Again, the main issue with multi-state property ownership in estate planning is the potential future probate process. It can be a huge problem for your loved ones, so make sure to speak with an estate planning lawyer to help you understand your options for avoiding this, such as creating a trust or a transfer-on-death deed.
What about estate taxes across state borders?
You often hear a lot about avoiding estate taxes. But what are they, and what does it mean? An estate tax is a tax paid by the estate, and can hit you at both the federal and state levels. An inheritance tax is paid by the person receiving the inheritance (i.e., the beneficiary).
Federal estate tax level
For tax year 2025, the federal estate tax exemption is $13.99 million per person. So unless your estate is worth more than that, you’re in the clear (for now). For example, if your estate is worth $12 million, you do not have to pay any federal estate taxes. On the other hand, if your estate is worth $14 million, you will have to pay federal estate taxes.
State-level estate taxes
Some states go rogue and impose their own estate or inheritance taxes.
Some states like Massachusetts, Oregon, and Washington have estate taxes with much lower exemptions than the federal level. And states like Pennsylvania and Nebraska impose inheritance taxes on the people receiving part of the estate.
Bottom line? This means even if you’re below the federal threshold, your estate could owe taxes depending on where you live or where your assets are. And same with the beneficiaries. So, if you’re moving states, it’s important to brush up on your new state’s estate tax implications!
The bottom line on estate planning across state lines
Even though you may not be required to update your estate plan when you move across the country, it doesn’t mean you shouldn’t review and update it regularly anyway. It can ensure your plan is still up to date and can also make your life and your loved ones’ lives easier when you die by having new state forms, paperwork, and documentation. And if you own property in different states, consider working with an estate planning attorney to avoid ancillary probate processes, which can also be a headache for your beneficiaries. At the end of the day, planning ahead means less stress for your loved ones and more peace of mind for you.
Lauren has commitment to and extensive experience with family law, estate planning, and small business ownership issues. She focuses her practice on mitigating conflict in litigation, is a Certified Mediator and Parenting Coordinator, and is particularly passionate about helping clients to protect themselves with pre-nuptial agreements tailored to their needs.
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