Welcome to Idaho

I have the great good fortune of having been born in this state. Idaho is my home and while I’ve also had the great good fortune to travel the world for work and pleasure, I’ve always found my way back home. The secret is out, however, we’re not the only ones who love to live here.

In my practice, I meet a significant number of clients who are new residents to the state, and most come with the same question – can I use my out-of-state estate plan in Idaho?

The answer is generally, yes. But it’s a qualified ‘yes.’ Yes, your existing estate plan is likely still valid in Idaho (or most states) but I highly recommend having it reviewed by a local estate planning attorney to ensure it complies with local laws and fully reflects your wishes. Differences in state laws regarding things like spousal rights, property distribution (e.g., community property vs. common law states), and formal requirements for documents can lead to unintended consequences or even make certain provisions invalid. And then the court has to get involved. Trust me when I say that this is rarely a good thing.

Below are some reasons to update your estate plan after a move:

• Varying State Laws: Each state has its own set of laws governing wills, trusts, powers of attorney, and healthcare directives. A document valid in one state might not meet the formal execution requirements in another. Powers of attorney and healthcare directives (living wills), are state-specific. While many states will honor out-of-state documents, it is not guaranteed and can lead to delays or increased scrutiny. Creating new documents based on your new state’s laws can help avoid complications.

• Different Property Laws: States differ on how they treat marital property (e.g., community property versus common law) and spousal inheritance rights. Your existing plan may not align with your new state’s laws, affecting asset distribution.

• Unintended Consequences: Discrepancies between your old state’s laws and your new state’s laws can lead to complications or render parts of your estate plan ineffective.

• Trustee or Personal Representative Eligibility: Some states have limitations on who can serve as a trustee or personal representative, particularly if that person resides out of state.

• Healthcare Documents & Powers of Attorney: These documents might need updates to ensure they are recognized by unfamiliar banks, medical professionals, and institutions in the new state.

• New Assets: You may need to update your documents to include new assets, such as property purchased in your new state.

• State-level taxes: While federal estate tax portability rules allow spouses to combine their exemptions, state-level estate or inheritance taxes can have different rules and exemption limits.

While your estate plan is generally portable to another state, updating your estate plan after an interstate move is the best practice to ensure your wishes are carried out exactly as you intend. Consulting an estate planning attorney in your new state can help you ensure all documents comply with local regulations, avoid potential delays, expenses, and stress for your loved ones, and account for any major life changes that may have occurred since you first created your plan. If you’d like to make sure you’re covered, I’m here to help.