The Constitution of the United States of America requires that states give “full faith and credit” to the laws of other states. This means that each state gives reciprocity to another state’s estate planning documents. However, this does not mean you should move without getting your estate plan reviewed!
Each state has unique laws that may affect your estate plan. Your estate plan may function one way in the state it was created and may function a different way here in Colorado. For example, some states have different requirements regarding who can serve as your Personal Representative.
Some states require the Personal Representative to be a resident of the state it was created in or they must be related to you. Additionally, each state has a different probate threshold. You want to make sure that your plan will avoid probate based on the laws of the state that you live in, not the laws of the state the will was created in.
Powers of attorney are other documents that should be reviewed when you move to a different state. For the most part, powers of attorney are pretty standard documents that do not need to be changed too much. However, some institutions do not like using out-of-state powers of attorney because out of state forms can vary so much.
For example, some states combine medical power of attorney, HIPAA, and advance directive into one form, when other states do not. Another example is the questions included on the advanced directive. Some states ask a handful of questions while other states do not. Not having your state’s form can potentially cause a delay in your agent’s ability to act.
Overall, we always recommend reviewing your estate plan after any major life event, such as moving! It’s important to make sure that your estate plan functions the way you want it to no matter where you move!
Schedule a free initial consultation to have your estate plan reviewed!