Zoom calls, text groups and old-school phone calls make staying in touch with adult children and grandchildren far easier than in the past. However, there are some things where being in a different state requires extra care. When the time comes to set an estate plan in place, it’s critical to know how estate plans are managed in other states, according to a recent article, “Estate plans can get complicated with out-of-state children” from the Cleveland Jewish News.
Every state has its own rules, and, in some cases, every local court has its own rules. In one state, the probate court may be fine with having an out-of-state executor. However, some states may not allow an out-of-state executor without having an additional in-state co-executor. Alternatively, they may require the out-of-state executor to post a bond, which can incur additional costs and be invasive, as it involves a credit check.
The easiest way to avoid this is by having estate planning in place long before it’s needed. This may not be top of mind when people are in their 40s or 50s. However, the general rule is that if you have assets, you need an estate plan.
Even college students or recent grads who only have savings and checking accounts need an estate plan. Parents of students over 18 need to be designated as their child’s health care power of attorney, so they can make medical decisions for their child. Anyone going off to college needs to have both a financial POA and a healthcare power of attorney document.
Suppose all the children live out of state. In that case, it is a good idea to establish a relationship with an estate planning attorney and other financial professionals so they can step in if the family can’t be present to pull together the many documents needed to settle an estate. While it’s not unusual for an estate planning attorney to go to a deceased person’s home and dig through their paperwork to find tax returns and financial records, it’s not ideal. It would be far better for family members to take care of these tasks in advance.
How property is left to heirs is also governed by state law and could result in different family members receiving different amounts. For example, Ohio doesn’t have an inheritance tax, but Pennsylvania does. One heir could find their inheritance decreased significantly because of an inheritance tax, while another would receive their inheritance tax-free.
You’ll want to be sure there are no ambiguities in the estate plan so the executor will have clear directions. A conversation with your estate planning attorney and executor in advance of your death could feel a bit macabre. However, it could prevent a host of problems in the future.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
