Moving to Connecticut may help with estate planning

| Oct 31, 2019 | Probate Litigation

There are a lot of reasons that people may move as they age. Sometimes, another climate seems like a good move, and sometimes, it makes sense to be closer to family and friends. Connecticut and some other states, however, have a few added benefits.

People are often looking into asset protection as they end up with more assets to protect and more ideas on what to do with them. Some states, including Connecticut, have new laws that allow people to create trusts with themselves as a beneficiary, so the assets are protected from creditors and estate taxes.

These trusts, called domestic asset protection trusts (DAPTs), are considered safer from risk if they are created by residents of the state that allow them. This is one of the reasons that a New Yorker may create a trust in Connecticut but New York may still try to tax the assets. It is more unlikely this would happen to a resident of the Constitution State.

Connecticut may also provide some other incentives to move in, as income taxes are lower than some surrounding states. As described above, Connecticut is more likely to see an estate plan with a DAPT succeed than a state that does not allow them within its own borders.

Estate planning can be a complicated process, and people can get frustrated or confused. An attorney is able to help with a lot of the strategic questions involved in estate planning and enact a lot of the steps that they require. Professional help is often worth the extra care and time.