You’re packing boxes, changing addresses, and planning a cross-country move. Somewhere in that chaos, you need to think about your trust. Most people don’t realize their trust can’t just tag along without some consideration. State laws governing trusts differ significantly, and what worked perfectly in your old state might create headaches in your new one.
Here’s what most people miss. The state where you created your trust applied its specific laws to that document. When you relocate, you’re not automatically switching to your new state’s rules. Your trust probably includes a provision stating which state’s laws govern it. This matters more than you’d think. It determines how courts interpret your trust and what rules apply during administration. If you created your trust in California and move to Texas, California law might still control everything unless you take action. Before you relocate, an Anaheim trust lawyer can review your documents to spot potential conflicts with your destination state’s laws.
States handle trusts differently in ways that directly impact you:
Some states give beneficiaries better asset protection. Others offer more favorable tax treatment. These aren’t minor technical differences. They can significantly change how well your estate plan actually works after you move.
Maybe not entirely, but amendments often make sense. A trust created under California law might reference state-specific statutes that don’t even exist in your new state. That creates confusion during administration when your trustee is trying to follow instructions that reference laws that aren’t on the books.
You should consider updating your trust if your new state has different approaches to income tax on trust distributions, creditor protection, administration requirements, or marital property rights. The goal isn’t perfection. It’s making sure your trust functions smoothly under your new state’s legal framework. Katje Law Group can evaluate whether you need amendments based on where you’re headed and what your trust currently says.
Where your trustee lives affects everything about trust administration. Some states require at least one trustee to reside in-state if the trust owns property there. Others impose taxes on trusts with in-state trustees, even when the grantor lives somewhere else entirely. If you’re serving as trustee of your own revocable trust, your move changes the trust’s tax residence. This can trigger state income tax obligations you didn’t have before.
Your trust contains practical details tied to your former state. Maybe it names the specific county where you want to avoid probate. Or it references state property laws that don’t apply anymore. These provisions won’t break your trust, but they’ll create confusion. An Anaheim trust lawyer can identify sections that need updating to reflect your new location and prevent headaches down the road.
Own property in your old state? That property stays subject to the original state’s laws regardless of where you’re living now. This creates a split situation. Different rules apply to different trust assets. You might maintain a connection to your former state’s legal system for years if you keep real estate there. Some people choose to leave their original trust governing law in place specifically because of those property holdings.
Start reviewing your trust document several months before moving day. Note which state’s laws currently govern it. Check whether you’ve named successor trustees in your new location. Next, research your destination state’s trust laws or talk with an attorney who knows both jurisdictions. Understanding the differences helps you make informed decisions about what needs to change. Finally, execute any required amendments before your move becomes official. Timing matters because your legal residence affects which state’s laws apply to changes you make.
Your upcoming move is actually a good opportunity to review your entire estate plan. Your trust might need updates to work properly under different laws, or it might be fine as written. You won’t know without a careful review of both your trust document and your new state’s requirements. Professional guidance helps you avoid problems and take advantage of beneficial provisions available in your new home state.
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Ms. Katje earned her Juris Doctorate at California Western School of Law, San Diego, California, graduated Cum Laude and was a Dean’s Honor List recipient. She was also a recipient of the American Jurisprudence Award in Contracts I and Contracts II. Ms. Katje was a member of the Law Review and International Law Journal at California Western School Law, where she was an Associate Editor.
