Estate planning allows individuals to ensure their loved ones will be taken care of after they are gone. However, there’s more to the process than drafting a document; you must take a proactive approach and update the papers periodically—especially after every major life change and significant purchase. Though many know to review their will after getting married, having children, and buying a house, you’ll also need to do so after relocating—particularly if you move out of state.

Common Law vs. Community Property

There are two ways to classify marital property in this country: the common law system and community. Although most states take the prior approach, there are nine that abide by the latter. You may not have to update the estate planning documents if the laws in your new location are similar; however, it still wise to review these documents.

If your new home state takes a different approach to classifying marital property, on the other hand, it is essential to talk to an attorney. States that employ a common law system do not consider property acquired during the marriage to belong to both spouses unless the spouse who purchased it chooses to share ownership. Under the community property system, all assets acquired during the union typically belongs to both spouses equally.

Moving to or From Hawaii

Hawaii is a common law state, so if a couple relocates here from a community property one, they may need to designate each other as beneficiaries in their wills. Otherwise, all jointly shared marital assets—which would go to the other spouse upon death—will not be transferred in this way upon establishing residency. Likewise, if you leave Hawaii for a community property state, marital assets may automatically go to your spouse upon death, regardless of what your will might have expressed in your plans.

If you recently moved to Hawaii and need quality counsel regarding estate planning, turn to the trusted team at Wills and Trusts Hawaii. Based in Honolulu, this firm is proud to assist clients throughout Oahu and provide them with comprehensive legal guidance. To talk to a seasoned estate planning attorney on their team, call (808) 792-8777 today. To learn more about the firm and their comprehensive services, visit their website.