All men may be created equal, but all states are not.
You are planning a move.
Or perhaps, you are merely considering it.
Either way, you will need to do your homework.
According to the recent Kiplinger article titled “5 Financial Matters to Consider When Moving to a New State,” you have more to think about than school districts, doctors or churches.
What should you consider?
Differences in Income Tax.
Before you agree to your new job, find out if your new state has a higher income tax.
If yes, you may want to consider how this will affect your stock options or capital gains in your portfolio.
If the proposed contract does not take into account that you will be receiving less of each paycheck, you may want to renegotiate your salary.
Laws vary between states.
Estate tax and probate laws are not exempt.
You will want your will and powers of attorney to reflect these differences.
Updating your estate plan may be especially important if you own property out of state and desire to minimize the tax impact.
Consideration of Cost of Living.
Recreation, housing, utilities and even groceries can be far more expensive in one geographic location over another.
Take these into consideration when purchasing a home and choosing schools for your children, too
Even if income tax is lower, property or sales tax could more than make up for it.
States treat investments differently.
Portions of your capital gains can be exempt from income taxes in certain states.
The bottom line?
Before you move, be sure it is a wise choice financially.
Once you move, hire an experienced estate planning attorney licensed in your new state.
It will make the transition far smoother.
Ask your current estate planning attorney to help you find an "experienced" estate planning attorney in your new state, if your current attorney is not admitted to practice law there.
States are very strict on protecting their citizens from non-admitted attorneys and what is called the "unauthorized practice of law."
If you do not have a current attorney, then here is how I would recommend sorting through the "noise" when selecting an attorney.
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kiplinger (October 2016) “5 Financial Matters to Consider When Moving to a New State”