Whether you are moving out of state or just downsizing because your children are out of your home, our Troy, MI estate planning lawyer knows that this is a big life decision that will affect many aspects of your life. With all of the other stresses involved in moving, people often do not realize that moving can also have a significant impact on their estate planning documents. To continue to meet estate planning objectives, the changes in living situation need to be addressed, so that your estate planning documents can continue to best serve you and your family’s needs.
First, if your will or trust gives instructions for the distribution of your home that references your property you are selling by address, tax id number, legal description, or other specific references to that piece of property, it will be important to make sure you update these documents. Instead, your documents should make references to your new property or to generic language such as my home or my residence to make sure there is no confusion. If you are not purchasing new property and are instead going to rent, live with a loved one, or move into a nursing home, amending these documents to remove this clause is also a good idea.
If you are purchasing a new home, you will also need to make sure the deed for your new property reflects your estate planning goals. If you are moving to somewhere in the State of Michigan, then having a new Lady Bird Deed, also known as an Enhanced Life Estate Deed, that references your Trust or your intended beneficiaries as devisees of your remainder is necessary to make sure your new property continues to pass to them outside of Probate.
Keep in mind that only five states recognize Lady Bird Deeds. If purchase property outside of Michigan, Florida, Texas, West Virginia or Vermont, you will have to use a Quit Claim deed or a Transfer on Death Deed, to fund your trust(s).
Moving may also change who you want to serve in various positions in your estate planning documents. Perhaps you are moving further away from one of your children and closer to another child. It may, therefore, be more convenient to make the child you are moving closer to your Power of Attorney or Healthcare Power of Attorney since they are more local, and it is easier for them to be there in case of an emergency.
Lastly, if you are moving out of state, it is a good idea to have your estate planning documents reviewed by an attorney in the state or country you are moving to. Every state and country have different laws pertaining to estate planning. Perhaps you moved somewhere that recognizes Living Wills, a document Michigan Law does not currently recognize. Getting a Living Will drawn up may be a good idea to meet your estate planning objectives. Making sure your documents comply with the laws of your new home is critical in maintaining your estate planning goals.
As you can see, moving can have a significant impact on your estate plan in a variety of ways. If you have recently moved or are thinking about moving, please contact Gudeman & Associates, P.C. today so that we can make sure your estate plan is ready for your next chapter.
