A well-drafted Revocable Living Trust in another state should be fully enforceable in the State of Texas. In fact, the Trust should state that the law where the Trust was drafted is applicable, so moving to another state does not subject the Trust to a different set of laws. It is advisable that if you move from one state to another as your principal residence, that you have all of your estate planning documents reviewed. It is highly likely that your Powers of Attorney need to be redrafted, a Will probably will need to be redrafted, and a living Trust may need modification.
If the Trust has never been funded, however, we might decide to abandon it. If either the reason you originally chose to plan with a living trust doesn’t apply (such as you aren’t subject to crazy probate laws anymore) or it is more hassle and cost to fund the trust than to just do a will, it might be best just to start over with a Texas will. If the Trust was funded, it is almost always better to leave the assets in the Trust.
A Living Trust is designed to be amendable, if not revoked, so often circumstances change and the trust needs to be updated. Just like any estate planning, you should review your Living Trust to make sure it does not require changes caused by life changes, selling assets, marriages, divorces, or grandchildren (the best change!).
At Pyke & Associates, we review estate plans from other states without charge and make recommendations on how to proceed without any obligation on the part of the potential client.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
