If you own property in more than one state, or in another country or territory, or if you have lived in more than one state, your estate plan may need to take into account the laws of multiple jurisdictions.
More than one jurisdiction may tax the same property at your death. While some jurisdictions provide a credit for a tax paid in another jurisdiction, others do not. Therefore, planning to avoid unnecessary duplicative taxation of your assets is critically important.
The probate laws of states, other than your home state, in which you own property usually require that an ancillary probate proceeding be commenced to dispose of your property in that state. This type of proceeding can be avoided by the use of a revocable trust to own your property located there.
If you are married and previously lived in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), your and your spouse’s property acquired during such time is community property. Community property must be handled differently in your estate plan than property acquired in a common law state, such as New York or Florida.
The trust laws of some states are more advantageous than those of New York. Depending on your circumstances, we may advise forming a trust in a state that provides superior creditor protection, allows you as the grantor to be a beneficiary of your own trust, and allows trusts to have perpetual duration. In addition, there may be advantages to operating a trust in a state that has no state income tax or lower state income tax rates.
If you are planning on establishing domicile in a state other than New York, we will advise you on the rules to follow to accomplish the change in status.