Here for YOU Today and There for your FAMILY Tomorrow

Are Trusts Valid in all States?

06/16/2017

Are Trusts Valid in All States?

In summary, the general answer is yes. Trusts are governed by the laws of the state where they are established, but as reported in nj.com, “Is a trust valid in all states?” they are valid in all fifty states. The beneficiaries of the trust can move, the trustees can move and the trust is still good.

If there were to be litigation, that would take place in the state identified in the trust.

Your estate planning attorney will have included a clause along the lines of "Governing law: This agreement and the trusts established hereunder shall be governed by the laws of the State of Florida."

Likewise, the trust will be taxed pursuant to the laws of the governing state.

Most trusts won’t wind up in a legal fight over their terms or the trustee’s actions, and the trustees are rarely required to appear in court in the home state.

There are some exceptions, such as in the event of a death of the trustee, the trustee resigns, or for whatever reason stops acting as the trustee, and there’s no successor trustee named in the trust agreement. In those situations, a legal action needs to be brought in the home state for the appointment of a successor trustee.

If, for any reason, there was a need to amend the terms of the trust agreement after the trust maker’s incapacity or death, then such a proceeding would need to be initiated in the state governing the trust agreement.

An estate planning attorney may discuss including an option where the person establishing the trust may add a clause that stipulates that the trustee is authorized to apply to transfer the trust to another estate, if the trustee is the one who relocates and, if in the trustee’s (or the attorney’s) opinion, the laws of the new state are more beneficial for the purpose of the trust.

If you or your trust beneficiaries are considering relocating, make sure that you review the rules and possible repercussions of any moves with a knowledgeable estate planning attorney.

Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help! Please visit www.411probate.com for valuable information.

  • My practice is exclusively estate planning and probate,
  • I have prepared numerous estate plans in 16 years of practice,
  • I have administered estates and trusts through Probate all over Florida,
  • I am a Certified Financial Planner Professional™, and
  • I am here for YOU today and there for your FAMILY tomorrow.

Reference: nj.com (May 19, 2017) “Is a trust valid in all states?”

Testimonials
★★★★★
Why would we recommend D.T.F.? Several Reasons: Your ability to explain complex estate problems, clearly and patiently; your total lack of arrogance and pretense; a strong feeling that you are motivated by what you perceive is best for your client, rather than what would generate the largest legal fees; finally, and importantly, you are a lovely guy.
★★★★★

Two words cannot sum up the entire process of creating my “trust.” I enjoyed your attention to detail, your patience of explaining terms and conditions until I understood, also giving me copies to read and understand. Thank you for your suggestions on what was best for “me” but still allowing me to make my choice. Most of all, thank you for thinking of “me.” Wells Fargo said “you were the best” I cannot deny that. Again thank you very much for everything. Anna is an asset or a compliment to the firm. She is warm and very caring. It was great doing business. Thank you.

P.M.