Legal Question in Wills and Trusts in Arizona
Does original State of NJ for trust need to be changed for Az residence..are inh
I have a revocable grantor trust, originally done in New Jersey. I now live in Arizona, and on an application they ask for State whose laws govern trust. I understand that I can leave NJ, and nothing in the way of inheritance or other taxes are affected (that is determined by residency). Only some powers of Trustees may be affected, or length of trust....is that correct?
My concern is that NJ has an inheritance tax for non-linear descendants (no problem for children, grandchildren etc., but neices and nephews are taxed). I will be listing NJ as the State governing, even though I live in Az, and have been told that is OK...
Can you confirm, please?
1 Answer from Attorneys
Re: Does original State of NJ for trust need to be changed for Az residence..are
A trust validly executed in one state is enforceable even if the grantor relocates to a different state. If the trust specifies that the laws of NJ govern, this remains true regardless of the residency of the grantor. If you want a trust in which AZ law controls, the trust would need to be re-written and re-executed, since AZ may have different validity requirement. With the existing trust, you must indicate that NJ laws control; your moving does not automatically revise the terms of the trust. I am not certain about whether AZ's inheritance tax laws differ greatly from NJ (the estate is not taxed in AZ, but I'm not sure about the beneficiaries). If the beneficiaries are not taxed, however, this may be a good reason to redraft your trust in AZ with AZ laws controlling. If you would like to follow up on this possibility, please contact me. My direct email address is [email protected]
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
