Every year, people from all over the Mid-Atlantic region move to Delaware. Whether it’s to be closer to loved ones or to take advantage of our low taxes, Delaware can be an excellent place to retire.
Moving to a new state means a lot of changes in your life. That could include your estate plan. Depending on the content and goals of your plan, a move to Delaware could be a big opportunity to take advantage of the First State’s unique laws.
Taxes on trust income
For example, unlike most states, Delaware does not impose state income tax on income from a trust if the trust’s beneficiaries are not residents of Delaware. For retirees whose children and grandchildren live elsewhere, creating a trust here can thus lead to significant savings for your estate plan, leaving more money for your loved ones to enjoy.
Estate taxes
Like many states, Delaware has an estate tax on top of the federal version. However, state law contains an exemption tied to the federal estate tax exemption. Depending on the tax laws of the state you are moving from, you could have less to worry about as far as planning to avoid estate taxes.
It is always wise to review your estate plan after a major life event like a move to a new state. You can remove outdated heirs, beneficiaries and powers of attorney and replace them with people who best fill those roles at this stage of your life. You can add or amend documents as your wealth increases and your health changes. Your estate planning attorney can help go over your plan and uncover opportunities for changes.
