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Does moving states affect my trust?

On Behalf of | Jun 1, 2017 | Trusts

Often, as people grow older and pursue opportunities and interests, they move from one state to another. Of course, any time you move states, you suddenly must contend with a whole host of issues you might not expect — different taxation and different laws that govern everything from DUI penalties to building codes. But, does moving states affect your estate planning if you created a trust in one state and relocate to another?

In broad strokes, no — regardless of where you create your trust, it remains valid in all 49 other states. There are no states in the union that refuse to recognize trusts created in some other particular state.

However, the laws of the state where you created the trust do still apply, and continue to govern the trust even after you leave. This is unlikely to affect your plans in any great way, because trusts rarely incur litigation. However, one issue that you must contend with after moving states is that the trust will continue to be taxed under the laws of the state in which it was created.

Also, should you need to change the terms, or alter or dissolve the trust, this must be done in the state where the trust was first created.

While these matters are unlikely to cause any big issues, they are still important to understand when you relocate, especially later in life. If you have any further questions about creating the right trust for your needs, or maintaining a trust from another state, don’t hesitate to reach out to an experienced attorney.

Source: NJ.com, “Is a trust valid in all states?,” Karin Price Mueller, accessed June 01, 2017

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