There are many reasons to retire in Idaho, such as our happiness factor according to U.S. News & World Report. But Idaho is a community property state with unique laws. You need to update your wills or living trust if you move here from another state.

Retire in Idaho for Outdoor Adventure

Idaho ranks favorably on affordability, health care, and outdoor adventure. I will tell you that I love the Greenbelt on the Boise River for biking and I love Camel’s Back Park in the North End for hiking. The food truck scene is also great with live music at some venues, such as Green Acres Food Truck Park. The Basque Block in downtown Boise is a walkable street with great restaurants and frequent Spanish festivals. I am partial to the lamb grinder at Bar Gernika because it comes with au jus for dipping and the fries are very crispy.

I also talk to clients who experience the mountainous towns in Idaho and they love to retire in Idaho for the natural beauty. If you are into hunting, two-thirds of Idaho is public land. Idaho is home to waterfowl, small game, upland game birds, turkey, and eleven species of big game that you can hunt. If you have or want a suppressor (silencer) for your rifle, read my article about an Idaho Gun Trust.

Quasi-Community Property

There are nine community property states, including Idaho, but only four of them, including Idaho, have laws regarding quasi-community property. If you retire in Idaho, any property you acquired outside of Idaho as a married couple is quasi-community property if you die as a resident of Idaho. Quasi-community property is treated just like community property when you die or your spouse dies.

The rule of quasi-community property is that each spouse owns half. If, for example, a married couple lives and works in another state for many years and retires in Idaho, all of their earnings convert to quasi-community property and each spouse owns half of the wages and whatever the wages bought in the other state.

Dealing with Quasi-Community Property

In the above example, the wife owns half of the husband’s past wages and the husband owns half of the wife’s past wages because they retired in Idaho. Each of them also own half of whatever was purchased while they were married in the other state. So they need to update their wills or living trust to deal with the new quasi-community property. Additionally, neither of their wills nor trusts can devise (give away) the community property of the other spouse.

However, with proper estate planning, they can execute an agreement to change the status of any community property. A community property survivorship agreement can classify all the property as community property and pass it to the surviving spouse when the first spouse dies. Or an agreement can change the status of community property to only one spouse’s separate property. Pre-nuptial or post-nuptial agreements can also dictate the status of separate or community property. Idaho law allows all of these agreements and classifications.

Commingling When You Retire in Idaho

Each spouse keeps their separate property when they retire in Idaho. Anything owned before marriage or anything inherited is classified as separate property. You can give your separate property to anyone you want and your spouse cannot prevent it. However, commingling converts one spouse’s separate property to community property. Commingling occurs by mixing up separate property with community property so thoroughly that it cannot be identified as separate.

How can commingling happen? When you don’t keep separate property apart from everything else. For example, if you inherit from a deceased parent and place that cash in your joint checking account with your spouse, commingling occurs and it converts to community property. On the other hand, if you inherit a house from your deceased parent and you are the only individual named on the title, it remains separate property.

Idaho Estate Planning for Retirement

Isn’t your future worth more than a standardized form you find on the internet? You need a licensed Idaho estate planning attorney to explain the laws and plan for your unique situation. Contact me to schedule an appointment for a free initial consultation.