Mild winters and year-round accessibility to parts and trails throughout the Rocky Mountains are some of the reasons listed by CNN in its ranking of best states to retire. In addition, Bankrate finds that Colorado residents are some of the happiest with great access to healthcare.
Is there any downside in relocating to Colorado for retirement? The cost of living has been increasing as more people move to the state. In looking at retirement, estate planning is a crucial component of the process.
Looking toward the future
Considering a move to coincide with retirement should involve looking at the future. Whether you will be moving away from adult children or adult children have already spread out across the country, it might be a good time for a family discussion.
It is also important to sit down with a local Colorado estate planning attorney to review an existing estate plan or to finally take the time to get one in place. Each state has different laws.
State-specific estate & inheritance laws
While estate planning might not be top of mind when considering a move, things like state estate taxes can make a big difference. New Jersey and Maryland, for instance, have complex estate and inheritance tax laws. In the past, New Jersey even imposed an estate tax on out-of-staters who owned beach properties.
Moving from a community property state such as California to a common law state like Colorado is another important distinction.
In addition, certain planning may have been completed to avoid probate. The probate process differs from state to state. Probate might not be as onerous or time consuming in Colorado, so avoidance might no longer need to be a top priority.
Because each situation is different, you need accurate legal counsel to be able to make decisions that will meet your goals. Take the time prior to a move or shortly after to review your estate plan with a Colorado estate planning attorney.