Heading South This Winter? Don't Forget Your Estate Plan

For many Minnesotans, winter means packing up and heading south for a few months. Whether you're escaping the cold for Florida, Arizona, Texas, or another warm weather destination, it's important to make sure your estate plan is ready before you leave.

Owning property or spending significant time in another state can create legal and tax considerations that many people do not expect. Taking a few steps before you head south can help protect you, your family, and your assets while you're away.

Review Your Estate Plan Before You Travel

Before you leave for the season, take time to review your estate planning documents. Life changes quickly, and your plan should reflect your current wishes.

Ask yourself a few important questions.

Are the people you have chosen to make financial and medical decisions still the right people? Whether you have named a trustee, personal representative, or agents under powers of attorney, make sure they are still willing and able to serve.

Have your beneficiaries changed? You may want to add a new family member, include a charitable organization, or update how your assets will be distributed.

Do your beneficiary designations still match your estate plan? Retirement accounts and life insurance policies generally pass according to the beneficiary designation on the account, regardless of what your will or trust says. Keeping these designations current is an important part of ensuring your overall plan works as intended.

If You Own Property in More Than One State

Many snowbirds eventually purchase a second home in the state where they spend the winter. If you own real estate in more than one state, your estate plan deserves special attention.

If your plan relies only on a will, your loved ones may have to go through probate in each state where you own real estate. Multiple probate proceedings can increase costs, create delays, and add unnecessary stress during an already difficult time.

A properly funded revocable living trust may help your family avoid multiple probate proceedings by allowing those assets to pass outside of probate according to the terms of your trust.

Understand Where Your Legal Home Is

If you split your time between two states, it is important to understand the difference between residency and domicile.

While you may qualify as a resident of more than one state, you generally have only one legal domicile. Your domicile is your permanent home and can affect your taxes, estate plan, and certain legal rights.

If you are unsure which state is considered your domicile, talk with your attorney and tax advisor. Taking the time to understand these rules now can help prevent complications later.

Make Sure Someone Can Help If Needed

Unexpected situations can happen no matter where you are.

If you become ill or are unable to manage your financial affairs while away from home, will someone have the authority to help?

Review your financial power of attorney and healthcare directive before you travel. Make sure you understand when your agent's authority begins and that the person you have chosen is still willing and able to serve.

Having these documents in place can make it much easier for someone to assist you if the unexpected happens.

Will Your Documents Work in Another State?

Although estate planning documents that are valid in one state are often recognized in another, each state has its own laws and forms.

In an emergency, healthcare providers and financial institutions are often more familiar with documents prepared under their own state's laws. Having your estate planning documents reviewed by an attorney licensed in the state where you spend the winter can help avoid unnecessary questions or delays if they are ever needed.

A Little Planning Goes a Long Way

Preparing for a winter away from home involves more than packing your suitcase and arranging for someone to check on your house. It is also a great time to make sure your estate plan is current and that it reflects your lifestyle.

Whether you spend a few weeks or several months away each year, reviewing your estate plan now can provide peace of mind for you and your loved ones.

If you are planning to head south this winter, now is an excellent time to review your estate plan. The attorneys at Wagner Oehler can help ensure your documents continue to meet your needs, no matter where life takes you.

Take the Next Step

If you’re ready to start being proactive about your estate plan and want guidance tailored to your family, assets, and goals, contact Wagner Oehler, Ltd. to get started.

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