Considerations before heading South for the Winter

For many snowbirds, cooler weather means it is time to head south. If you are thinking about heading for warmer weather this winter, there are a few things you should consider before hitting the road.

What is happening in your destination state?

It remains important to research your winter destination before traveling. While pandemic concerns have largely eased, health and safety conditions can still vary by region. It is wise to check local updates to determine whether your destination has any public health advisories, travel restrictions, or vaccination requirements. Additionally, confirm if there are any local mandates in effect, such as mask guidelines in healthcare settings or restrictions on indoor gatherings. Taking a few minutes to understand the current conditions at your destination can help ensure a smooth and safe transition to your winter home.

Which state do you consider your home?

Your state of domicile impacts your estate planning, family law matters, and taxes. Due to differences in state tests for determining residency, you can be considered a resident of more than one state; however, you can only be domiciled in one state. Although state laws differ as to determining domiciliary status, the common elements are that your domicile is where you permanently live and where you intend to remain or return. Because you are spending time in two or more states, you should meet with your tax advisor to confirm that you are filing the appropriate tax returns and have a plan in place to maximize the potential differences in tax laws. For example, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have any personal income tax. You should also consider meeting with us to discuss the estate planning implications of owning properties in multiple states, especially if you own properties in both community and separate property states.

Have you reviewed your estate plan lately?

Before you depart, locate and review your estate planning documents. Life changes are common and sometimes occur without warning. Having an up-to-date estate plan helps ensure that your wishes are carried out during your lifetime and upon your death. You should confirm that your named fiduciaries, such as your trustee, personal representative, guardian for a minor child, and agents under a financial power of attorney or medical power of attorney, are still willing and able to serve in those roles. Likewise, verify that your named beneficiaries are still alive and that your designations reflect your current wishes. You may wish to add new individuals or charities, adjust inheritance amounts, or revise how distributions are made. Ensure that your beneficiary designations for retirement accounts and life insurance policies are consistent with your overall estate plan. If you need to move for health reasons but cannot make the decision for yourself, check that your agent has the authority to relocate you to another state if needed.

Additionally, you may require assistance with financial matters or transactions while you are away. For this reason, you should review your financial power of attorney to determine whether it is springing or immediate. A springing power of attorney allows your agent to act only when you are no longer able to act on your own, as determined by a physician or, in some instances, a judge. By contrast, an immediate power of attorney allows your chosen agent to act on your behalf right away, regardless of your current ability to act for yourself.

While reviewing your existing estate plan, you should also evaluate whether it includes all the necessary documents. If you currently have a will-based estate plan, it may be time to add a revocable living trust to your estate planning portfolio. This is especially important if you own property in more than one state. Without a trust to consolidate ownership and administration, your loved ones may end up going through multiple probate administrations in different states, which can increase the time and cost of settling your affairs after your death.

Are your estate planning documents compliant in both states?

Estate planning laws are state-specific, and for certain documents—such as the financial power of attorney and healthcare directive—each state may have its own statutory forms. While one state may honor a document that was validly executed in another, it is often faster for medical personnel to honor your wishes in an emergency if your instructions are in a familiar form. For that reason, we suggest that you have an attorney licensed in your second state review your estate planning documents for compliance and, if necessary, prepare a second financial power of attorney and healthcare directive to ensure full effectiveness in both states.

As you prepare for your upcoming travel in 2025, book a complimentary consultation today so we can help ensure your estate plan keeps up with your lifestyle.

Disclaimer: The Information contained in this blog does not provide or constitute legal, financial, or other professional advice. The content is for general information, education, and not a substitute for professional advice. Accordingly, we encourage readers to consult with our office or other appropriate legal, financial, and other professionals to determine the best course of action for their individual and specific situation. Readers rely on the information conveyed herein at their own risk.