Moving to Colorado doesn’t automatically invalidate your existing estate plan, but it does require attention. Each state has different laws governing wills, trusts, powers of attorney, and other estate planning documents. What worked perfectly in your previous state may need adjustment to function properly under Colorado law.
At W.B. Moore Law, we help new Colorado residents review and update their estate plans to comply with state requirements and take advantage of Colorado-specific benefits.
Your Out-of-State Documents Remain Valid
Colorado generally recognizes wills and trusts created in other states as long as they were validly executed under that state’s laws. Your will doesn’t become void the moment you cross the state line. The same applies to trusts and most other estate planning documents.
However, validity and effectiveness are different things. A valid document may still create problems during administration if it doesn’t align with Colorado procedures or uses terminology that Colorado courts interpret differently.
Key Differences In Colorado Law
Colorado has specific statutes that may differ from your previous state. Understanding these differences helps you identify potential issues with your existing plan.
Community Property Vs. Common Law
Colorado is not a community property state. If you moved from Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, this distinction matters significantly. Community property states treat assets acquired during marriage as jointly owned, while Colorado follows common law property rules where ownership depends on whose name appears on the title.
Your estate plan may contain provisions based on community property concepts that don’t translate well to Colorado law. These sections might need revision to achieve your intended results.
Homestead Protections
Colorado’s homestead exemption protects a portion of your primary residence from creditors. The Colorado homestead exemption currently provides up to $250,000 in equity protection for homeowners age 60 or older, or $75,000 for those under 60.
If your previous state offered different protections, your asset protection strategy may need adjustment. Some states provide unlimited homestead protection, while others offer less than Colorado.
Healthcare Directive Requirements
Colorado has specific requirements for medical powers of attorney and living wills. While your existing healthcare directive likely remains valid, Colorado courts and healthcare providers work most smoothly with documents that follow Colorado statutory forms and language.
Colorado law also addresses physician aid-in-dying, which became legal under the Colorado End-of-Life Options Act. Your healthcare directive should reflect your wishes regarding this option if it matters to you.
Reviewing Your Power Of Attorney
Powers of attorney vary significantly between states. Financial institutions and other third parties in Colorado may hesitate to accept an out-of-state power of attorney, even if legally valid. They worry about liability and prefer documents that clearly comply with Colorado statutes.
A Windsor estate planning lawyer can review your existing power of attorney and determine whether creating a new Colorado version makes sense. In many cases, executing a fresh power of attorney eliminates potential acceptance issues and provides clarity about which state law governs.
Powers of attorney executed under previous versions of the Uniform Power of Attorney Act may not include certain provisions now standard in Colorado documents. Updating brings your documents current with modern practices.
Real Estate In Multiple States
Owning property in multiple states adds layers to estate planning. Your Colorado estate plan should address real estate you still own in other states. Trusts often provide the best solution for managing property across state lines, avoiding multiple probate proceedings.
If you kept a vacation home or rental property in your previous state, coordinate with local counsel there to verify that your trust properly holds title. Deeds must be recorded correctly in each jurisdiction to avoid probate in multiple states.
Trust Administration Considerations
If you have a living trust, moving to Colorado may require updating the trustee succession provisions. You probably named someone local to your old state as successor trustee. That person may no longer be the most practical choice now that you live in Colorado.
Trust administration rules also vary by state. Colorado has adopted the Uniform Trust Code, which may differ from your previous state’s trust laws. A review helps identify any provisions that should be modified to work smoothly under Colorado’s framework.
Executor And Agent Selection
Your will names an executor, and your powers of attorney designate agents. Consider whether these individuals can still serve effectively from a distance. Executors and agents handle time-sensitive matters that often require local presence.
Out-of-state executors must sometimes post bonds in Colorado even when your will waives this requirement. Appointing a Colorado resident as executor or co-executor can simplify administration and reduce costs.
Tax Considerations After Moving
Colorado doesn’t impose a state estate tax or inheritance tax. If you moved from a state with estate taxes, such as Washington, Oregon, or Illinois, your overall tax picture changed. Your estate plan may include strategies designed to minimize state estate taxes that no longer apply.
However, you may still own assets in states with estate taxes. Your plan should address the tax treatment of property located in those jurisdictions. A comprehensive review helps optimize your tax strategy based on your current situation.
Updating Beneficiary Designations
Review beneficiary designations on retirement accounts, life insurance policies, and transfer-on-death accounts. While changing states doesn’t invalidate these designations, it’s a good time to verify they still reflect your wishes.
State law determines how beneficiary designations interact with divorce, marriage, and other life changes. Colorado’s rules may differ from your previous state. If you’ve experienced any major life events around the time of your move, double-check that your designations align with your intentions.
When To Create New Documents
Sometimes updating existing documents works fine. Other times, starting fresh makes more sense. Extensive changes, documents more than 10 years old, or plans created under significantly different state laws often warrant new documents rather than amendments.
New documents avoid confusion about which provisions control and eliminate outdated references to previous state laws. They also give you an opportunity to incorporate current best practices and reflect any life changes since you created your original plan.
A Windsor estate planning lawyer can assess your specific situation and recommend whether updates or new documents serve you better.
Steps To Take Now
After relocating to Colorado, take these actions to protect your estate plan:
- Schedule a review of all estate planning documents with a Colorado attorney
- Gather information about property you own in multiple states
- Update your address with financial institutions and insurance companies
- Consider whether your current executors and agents remain the best choices
- Review beneficiary designations on all accounts
- Create Colorado-specific powers of attorney if needed
- Verify that your healthcare directive addresses Colorado law
Don’t assume your existing plan will work smoothly without review. Small adjustments now prevent major problems later.
Making Your Transition Complete
Moving to a new state involves more than changing your address. Your estate plan deserves the same attention you give to registering vehicles, updating voter registration, and finding new healthcare providers. We work with individuals and families who have recently moved to Colorado to review their existing estate plans and make necessary adjustments. Contact our team to discuss your out-of-state documents and develop a plan that works properly under Colorado law.