WealthManagement.com
From: Anne Gifford Ewing, Elizabeth Glasgow, Timothy Riley
Crossing State Lines Estate planning for couples moving between community property and common law U.S. jurisdictions
Suggested talking points
Community property versus common law regimes create material tax disparities at death; a spouse relocating from California to New York forgoes the step-up in basis on community property assets, requiring explicit documentation strategies to preserve tax treatment during transition periods.
Interstate moves trigger overlooked conflicts in will execution and fiduciary authority—a pour-over will valid in one jurisdiction may not adequately address ancillary probate in a second state, necessitating supplemental instruments that coordinate with the original estate plan rather than replace it.
Couples should audit beneficiary designations (life insurance, retirement accounts, transfer-on-death accounts) before crossing state lines, as these contractual instruments supersede probate law and can inadvertently contradict revised community property or common law intentions if not synchronized with the new jurisdiction's framework.
Advisors can position themselves as specialists who address the mechanics of cross-jurisdictional estate planning for mobile clients—not the aspirational side of wealth transfer, but the operational compliance and tax coordination that prevents mistakes.
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