Snowbirds are individuals, usually retirees, who split their time between northern states during the warm months and southern or other states during the colder seasons. Many residents of New York and New Jersey move to Florida or the Carolinas, for instance, or sometimes to the southwest to escape the cold. But these individuals encounter unique estate planning challenges that require the assistance of a qualified attorney. If you routinely divide your time between the north and somewhere else, let Merlino & Gonzalez put together a personalized plan that meets your needs.
Why Snowbirds Need Multi-state Estate Planning
The laws that govern various estate planning documents like wills, trusts, and powers of attorney vary from one state to another. What is valid under the laws of one jurisdiction may be invalid under the laws of another. If you own property in more than one state, you will especially want to make sure that the estate documents you have will be enforceable should you pass away while domiciled there. The same is true for other instruments.
Some snowbirds do not just own property in more than one state, they are dual residents. However, they will need to designate one state as their primary legal residence and may take various considerations into mind when doing so, such as tax and inheritance laws. Your estate planning attorney may advise that you execute state-specific documents in all places where you own property or claim legal residence. Another option is to draft a single document that conforms to the laws of all states. Still another possibility, if you already have an estate plan, is that you update your existing documents to make them comply with all applicable states.
One other challenge that snowbirds must deal with is determining which state they will ultimately retire to for their long-term care. Each jurisdiction has its own rules regarding government programs, like Medicaid, which pay for this. Estate planning in this context includes using trusts to decrease the number of assets that will be counted against you for purposes of Medicaid eligibility.
The Specific Issues Snowbirds Face
Our firm is prepared to assist with the estate planning needs of snowbirds and other individuals with multi-state residences. Some of the specific issues we can help with include:
- Probate: Probate is the practice of validating or “proving” a last will and testament so that the testator (the person who created the will) can have their wishes carried out after death. It is a potentially time-consuming and expensive process, and it differs in complexity from one state to another. That means your estate plan must be created with an eye towards probate considerations.
- Trusts: Contrary to popular belief, trusts are not reserved exclusively for the wealthy. They are excellent estate planning tools that help manage and protect assets, avoid probate, and reduce the amount of assets that are counted for Medicaid eligibility purposes. Certain types of trusts are treated more favorably in different states, and we can review some of the best ways to use these instruments in your plan.
- Powers of attorney and healthcare directives: These are used to designate agents who can make financial, healthcare, and other decisions on someone’s behalf in the event they are ever incapacitated. However, powers of attorney and healthcare directives must be drafted in such a manner that every state recognizes their authority. We can help properly draft these and other instruments to plan for potential incapacity.
- Real property: As mentioned above, many snowbirds not only own property in different states but must decide which one is to be their primary residence. Each state has different laws that affect what happens to real property after death, especially concerning estate taxes and probate. As your estate planning attorneys we will take these important differences into account.
- Taxes: The snowbird’s selection of which state will be their domicile has important tax implications. There are also differences in estate taxes and how they will affect the individual’s plan. We help snowbirds create their legacy in a way that minimizes taxes so more of their hard-earned wealth can be passed to their heirs.
How an Estate Planning Attorney Can Help
If you are a snowbird or otherwise a part-time resident of New York or New Jersey, our firm can assist you with developing an estate planning strategy that takes into account legal variations across different states. Our approach involves:
- Drafting New York- or New Jersey-specific estate planning documents: We start by explaining the various estate planning documents you should have, and then draft and execute them according to the laws of New York or New Jersey. Among these instruments are the last will and testament (will), trusts, living will, advance directive, and power of attorney. We will review your objectives and help you decide which documents are right for you.
- Discussing state variations: Next, we can broadly explain how state laws vary with respect to the matters discussed above. By helping you understand how estate planning and probate laws differ, and how they may affect your plan, you can prepare accordingly.
- Working with out-of-state attorneys: Lastly, we know that you likely need estate planning documents that meet the legal requirements of other states. Our firm works closely with out-of-state lawyers who can help prepare these documents so your rights and interests are protected no matter where you live.
Contact Our New York & New Jersey Snowbird Estate Planning Attorney
Everyone needs a comprehensive estate plan and this is no less true for snowbirds. Whether you have never created a plan or it’s been a while since you last updated it, speak with an experienced attorney to prepare for your future. Call Merlino & Gonzalez today.