When it comes to estate planning, it's important to keep in mind that each state has its own set of laws and regulations that govern the process.
When working with clients in other states, you can help them identify their estate planning goals, discuss different options for creating an estate plan, and connect them with qualified estate planning attorneys in their state.
Ultimately, it’s important to make sure your client’s estate planning documents are state specific, and that they're regularly updated to reflect any changes in state laws. In these cases, online estate planning software for financial advisors can be a big help (that's where we come in!)
Here’s what you need to know.
Wills for out-of-state clients
One key area where state laws can differ is in the requirements for creating a valid will.
Differences can include:
- The number of witnesses needed
- The minimum age of witnesses
- Whether notarization is required
- Whether holographic wills are permitted
- When the will needs to be filed with the probate court
States also differ significantly in their intestacy laws — that is, what happens if your client dies without a will.
If you're client is using their will to appoint a legal guardian for minor children, it's worth noting that the requirements for guardianship also vary between states.
Witnesses
Notarization
The rules concerning the notarizing of wills vary by state in the US.
Even if notarization isn’t necessary in your client’s state, it can be a good idea to have the will notarized to reinforce its validity in case it’s challenged in court.
Probate filing
Holographic wills
Intestacy laws
Alabama
If the decedent is survived by a spouse and children, the spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Alaska
If the decedent is survived by a spouse and children from that marriage, the spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children from that marriage, the spouse receives the first $150,000 of the estate plus one-half of any remaining estate, and the decedent's parents receive the rest.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Arizona
If the decedent is survived by a spouse and children, the spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Arkansas
If the decedent is survived by a spouse and children from that marriage, the spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children from that marriage, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
California
If the decedent is survived by a spouse and children from that marriage, the spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children from that marriage, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Colorado
If the decedent is survived by a spouse and children, the surviving spouse receives the entire estate.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $300,000 of the estate plus three-fourths of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Connecticut
If the decedent is survived by a spouse and children from that marriage, the spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children from that marriage, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents or their issue, and if there are none, to the decedent's siblings or their issue.
Delaware
If the decedent is survived by a spouse and children, the spouse receives the first $30,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or siblings, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or siblings.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's parents, and if the parents are not living, to the decedent's siblings.
Florida
If the decedent is survived by a spouse and children, the spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Georgia
If the decedent is survived by a spouse and children from that marriage, the spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children from that marriage, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Hawaii
If the decedent is survived by a spouse and children, the spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents, or the entire estate if the decedent had no surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Idaho
If the decedent is survived by a spouse and children, the spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Illinois
If the decedent is survived by a spouse and children, the spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Indiana
If the decedent is survived by a spouse and children, the spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $250,000 of the estate plus three-fourths of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Iowa
If the decedent is survived by a spouse and children, the surviving spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Kansas
If the decedent is survived by a spouse and children, the surviving spouse receives the entire estate if all of the surviving children are also children of the surviving spouse.
If not, the surviving spouse receives one-half of the estate and the children share the remaining half. If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $200,000 of the estate plus three-fourths of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Kentucky
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Louisiana
If the decedent is survived by a spouse and children, the spouse receives one-fourth of the estate if there is one child, one-third of the estate if there are two children, and one-half of the estate if there are three or more children.
If the decedent is survived by a spouse but no children, the spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Maine
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Maryland
If the decedent is survived by a spouse and children, the surviving spouse receives the first $15,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $15,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Massachusetts
If the decedent is survived by a spouse and children, the surviving spouse receives the first $200,000 of the estate plus three-fourths of any remaining estate, and the children share the remaining one-fourth.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $200,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Michigan
If the decedent is survived by a spouse and children, the surviving spouse receives the first $150,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $150,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Minnesota
If the decedent is survived by a spouse and children, the surviving spouse receives the first $225,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $225,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Mississippi
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Missouri
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $20,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Montana
If the decedent is survived by a spouse and children, the surviving spouse receives the first $300,000 of the estate plus three-fourths of any remaining estate, and the children share the remaining one-fourth.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $300,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Nebraska
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Nevada
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
New Hampshire
If the decedent is survived by a spouse and children, the surviving spouse receives the first $250,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $250,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
New Jersey
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
New Mexico
If the decedent is survived by a spouse and children, the surviving spouse receives the first $30,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
New York
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
North Carolina
If the decedent is survived by a spouse and children, the surviving spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
North Dakota
If the decedent is survived by a spouse and children, the surviving spouse receives the first $200,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $200,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Ohio
If the decedent is survived by a spouse and children, the surviving spouse receives the first $20,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $20,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Oklahoma
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $200,000 of the estate plus three-fourths of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Oregon
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Pennsylvania
If the decedent is survived by a spouse and children, the surviving spouse receives the first $30,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Rhode Island
If the decedent is survived by a spouse and children, the surviving spouse receives the first $50,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
South Carolina
If the decedent is survived by a spouse and children, the surviving spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
South Dakota
If the decedent is survived by a spouse and children, the surviving spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Tennessee
If the decedent is survived by a spouse and children, the surviving spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $50,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Texas
If the decedent is survived by a spouse and children, the surviving spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Utah
If the decedent is survived by a spouse and children, the surviving spouse receives the first $75,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $75,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Vermont
If the decedent is survived by a spouse and children, the surviving spouse receives the first $250,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $250,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Virginia
If the decedent is survived by a spouse and children, the surviving spouse receives one-third of the estate and the children share the remaining two-thirds.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $30,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Washington
If the decedent is survived by a spouse and children, the surviving spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
West Virginia
If the decedent is survived by a spouse and children, the surviving spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Wisconsin
If the decedent is survived by a spouse and children, the surviving spouse receives one-half of the estate and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Wyoming
If the decedent is survived by a spouse and children, the surviving spouse receives the first $100,000 of the estate plus one-half of any remaining estate, and the children share the remaining half.
If the decedent is survived by a spouse but no children, the surviving spouse receives the entire estate if the decedent had no surviving parents or descendants of parents, or the first $100,000 of the estate plus one-half of any remaining estate if the decedent had surviving parents or descendants of parents.
If the decedent is not survived by a spouse or children, the estate goes to the decedent's surviving parents, and if there are none, to the decedent's siblings.
Trusts for out-of-state clients
Different states also have different rules for setting up a trust, and some of those rules can be pretty specific.
For example, some states require the trust to be in writing and signed by the person setting up the trust, while others might allow for oral trusts or trusts that are created through conduct.
There are also different rules for who can serve as a trustee. For instance, in California, the trustee has to be either a resident of the state or a licensed attorney or financial institution. In Massachusetts, the trustee has to be a legal resident or a corporation authorized to act as a trustee. And if you're setting up a trust in Florida and you're not a resident, you have to appoint a resident agent.
Then there's the duration of the trust, which can vary by state. Some states have a "rule against perpetuities" that limits how long the trust can last. In California, it can go up to 90 years after the last beneficiary dies, while in New York it's up to 21 years after the last beneficiary dies.
The rules for modifying or terminating a trust also differ by state. Some states require unanimous consent from all beneficiaries before any changes can be made, while others only need the consent of the settlor and all beneficiaries.
Taxes are also different for trusts depending on the state. Some states tax trusts on their income, while others don't. In California, trusts may be subject to income tax but not state estate tax. In Massachusetts, trusts can be subject to both income and estate tax, depending on the structure of the trust.
And let's not forget about the level of protection against creditors. Some states offer better protection than others, which can affect the type of trust you decide to create. California has some good protections if the trust is structured correctly, but Massachusetts only offers protection for the beneficiaries, not the person setting up the trust.
It's important to keep in mind that the rules for trusts can change over time due to new laws or court decisions.
Trustee qualifications
The qualifications required for a trustee can vary by state in the US. Here is an overview of trustee qualifications for each state:
Note that while many states do not have specific qualifications for a trustee, it's still important for your client to choose someone who is trustworthy, financially responsible, and who has the skills and knowledge necessary to manage the trust's assets.
Trust duration
The rules around the durations of trusts can vary by state in the US. Here is an overview of trust duration rules for each state:
Note that while many states allow for perpetual trusts, some states have additional rules that can impact the duration of a trust.
For example, in Connecticut, trusts can last for up to 800 years, but this rule only applies to certain types of trusts. Plus, the tax implications of a perpetual trust can vary by state.
Modification of trusts
Most states allow all interested parties to agree on changes to a trust, but a few have extra rules you and your clients should be aware of.
In Massachusetts, for instance, everyone who benefits from the trust has to give their okay or a court order is needed.
There are also some states that require special steps to be taken, like giving notice to beneficiaries or getting court approval, before a trust can be modified.
It's important to keep these things in mind when working with trusts.
Trust termination
When it comes to trusts, there are two ways they can be terminated: everyone involved agrees, or a court makes an order. While the rules for each state can be different, most states let trusts be terminated if everyone involved agrees, including the trustee and all beneficiaries.
In some states, a trust can also be terminated by court order. This might happen if the trust is no longer practical or possible to manage, if the trust's purpose has been fulfilled, or if there has been a major change in circumstances that makes the trust unnecessary or undesirable.
A trust could also be terminated if it was established under fraudulent circumstances or is found to be invalid.
Before terminating a trust, your clients should consider several factors, such as the tax implications, the rights of beneficiaries, and any restrictions or limitations in the trust agreement or state law.
It's also important to note that some trusts might have specific instructions on how their assets should be distributed or used.
For example, a trust might say that any remaining assets should go to a particular charity or be used for a specific purpose. In these situations, it's crucial to review the trust agreement carefully and seek legal guidance to make sure you're distributing the assets properly and in accordance with the trust's terms.
Trust taxation
The taxation of trusts can vary by state in the US. Here is an overview of the trust taxation rules for each state:
Creditor protection
The level of protection that trusts offer against creditors can vary by state in the US. Here is an overview of the general rules and considerations for trust creditor protection for each state:
Power of attorney
When it comes to power of attorney, the rules can vary quite a bit from state to state. Here are some ways in which they might differ:
First off, each state might have its own definition of what power of attorney actually is, and what it allows someone to do.
Then there are the different types of power of attorney that each state might recognize. These could include things like durable power of attorney, limited power of attorney, and springing power of attorney.
To create a power of attorney, there might be different requirements depending on the state you're in. This could include things like the age of the person granting power of attorney, how many witnesses are required, and whether or not the document needs to be notarized.
What exactly the agent is authorized to do can also vary from state to state. Some states might allow them to make healthcare decisions, while others might not.
If you need to revoke a power of attorney, the process for doing so might be different depending on where you live, as could be the circumstances under which a power of attorney is terminated.
Additionally, each state may have its own rules regarding the liability of the agent for their actions under the power of attorney.
Finally, some states might recognize power of attorney documents created in other states, while others might require a new document to be created in accordance with their own laws.
Agent/attorney-in-fact residency
Estate planning for clients who own property in more than one state
When a client owns property in multiple states, it's important to think about how that property will be distributed after their death. Each state may have different rules for the distribution of property, so it may be necessary to create separate estate plans for each state.
Real estate: If the client owns real estate in multiple states, they might want to consider getting a revocable trust. This way, they’ll be able to avoid going through probate in each of the states in which they own property.
Personal property: The client may also own personal property (like furniture, artwork, or jewelry) in multiple states. Depending on the value of this property, it may be necessary to create separate estate plans for each state.
Business interests: If the client owns a business in multiple states, they may need to create separate estate plans for each state. This could involve creating separate trusts or other legal entities for each state.
Coordination with other professionals: It's important to work closely with other professionals, like attorneys, tax professionals, and real estate agents, to ensure that the client's estate plan is comprehensive and takes into account all relevant factors.
Dealing with property in multiple states can make estate planning more complicated, so it's important for financial advisors to work closely with their clients and other professionals to make sure everything is accounted for and distributed according to the client's wishes.
Real estate in multiple states
Real estate can be particularly complex.
If your client owns real estate in multiple states, they may want to consider a revocable trust to avoid going through probate in each state.
You and your client should also consider:
- Jurisdiction: Real estate is governed by state law, so the laws for distributing real estate can vary widely between states. This means it may be necessary to create separate estate plans for each state.
- Probate: The probate process can also vary widely between states, so it's important to understand how it works in each state where the client owns property.
- Property ownership: It's important to determine how the client owns the real estate. If the property is owned jointly with someone else (like a spouse), the distribution of the property may be governed by the terms of the joint ownership agreement.
- Homestead laws: Some states have homestead laws that protect a certain amount of a person's primary residence from creditors. It's important to be aware of these laws when creating an estate plan that involves real estate.
Tax implications
Tax implications can be a significant consideration in estate planning, and different states may have different tax laws that can affect the distribution of assets after death. Here are some additional factors to keep in mind:
- Estate taxes: As mentioned earlier, both the federal government and some states impose estate taxes on estates that exceed a certain value. The rules governing state estate taxes can vary widely, so it is important to work with a tax professional who is licensed in the client's state and familiar with the state's estate tax laws.
- Inheritance taxes: In addition to estate taxes, some states also impose inheritance taxes on certain types of assets that are passed down to beneficiaries. The rules governing inheritance taxes can also vary between states.
- Income taxes: In some cases, beneficiaries may be subject to income taxes on the assets they receive from an estate. The rules governing income taxes can vary between states and can be affected by factors such as the type of assets involved and the timing of distributions.
- Gift taxes: Clients may also be subject to gift taxes if they transfer assets to their beneficiaries while they are still alive. The rules governing gift taxes can vary between states, and it is important to work with a tax professional who is familiar with the rules in the client's state.
- Coordination with other professionals: When dealing with tax implications in multiple states, it is important to work closely with other professionals, such as attorneys and tax professionals, who are licensed in the client's state and familiar with the state's tax laws.
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With Snug’s estate planning software for financial advisors, you can upload your clients’ estate plans and get a full breakdown of which documents are in good shape and which might need updating. It’s all part of our Estate Report.
