If you are moving to North Carolina and already established a living trust in another state, or if you established a living trust in North Carolina and are now moving out-of-state, are you compromising the terms of your trust with your relocation?
Anchor A few things to consider before modifying your trust when moving away from or to North Carolina:
- Where do the majority of beneficiaries reside?
- Are North Carolina laws pertaining to trusts more favorable?
- Will there be additional out-of-state assets to add or keep separate?
- In what state does the trustee reside?
The trustee’s state of residence generally determines under which state the trust is administered. A way to preserve a grantor’s intentions in their trust following relocation is to have a lawyer amend state-specific legal references that address trustee authorities. When amending these terms, the grantor can also establish new powers of attorney in North Carolina or their new state of residence, depending on where they are moving. Trusts are an attractive tool when the person chosen to handle post-death matters resides in a different state than the grantor. According to the American Bar Association, “A living trust might be better than a will because the trustee probably won’t have to meet the residency requirements some state laws impose upon executors.”
Before modifying a trust due to relocation, ideally one should check with an estate planning lawyer who is familiar with the terms of the asset protection and tax laws unique to both states in reference. One state may offer more favorable terms over another.