Some states will demand more from your estate than others.
Your retirement is drawing near.
You are considering where to set up residence?
Perhaps you want to avoid cold or heat?
I get that, although I really like our changing seasons here in flyover country.
For some people, two homes is their solution.
According to a recent CBS Boston article titled “Snow Birds: Protecting Your Estate While Living in Two States,” there are specific things you need to consider if this is your solution.
But different states have different rules.
Before you consider moving completely or purchasing another residence, you should know the estate and tax laws in the state.
What should you consider?
You should know whether the state has in estate or inheritance tax.
Six states currently have an inheritance tax.
Fifteen states currently have an estate tax.
If you are set on having homes in more than one state, remember that you can only have one permanent state of residence.
How is this determined?
Your residence will be where you live the majority of the year and where you vote.
You will also need to do estate planning in both states.
If you own property in multiple states, your estate will go through probate in each of these states.
A trust may make transferring this property easier.
Additionally, having a durable power of attorney in each state will enable your loved ones to take care of financial and legal decisions should they need to access bank accounts in both states.
You will need to work with an experienced estate planning attorney either admitted to practice in both states or two attorneys appropriately admitted.
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: CBS Boston (October 13, 2017) “Snow Birds: Protecting Your Estate While Living in Two States”