Completing Your Change of Domicile
Is it time to complete your Florida Domicile?
When you moved to Florida you were probably told to file for Homestead, get a Florida Driver’s license, change your voters registration and, perhaps, file a Declaration of Domicile. That may be sufficient as far as Florida is concerned, but your former state may have a different opinion.
WHY IT MATTERS:
Estate Taxation – States are desperate for revenue and will look for any remaining connections to you to tax your income and estate
Entitlement to Florida Homestead Exemption
Domicile controls where your estate needs to be probated
Domicile controls whether probate proceedings need to be opened in multiple states
Domicile controls what State law applies to interpretation of your will and trusts
Medicare eligibility – varies from state-to-state
FACTS THAT OTHER STATES WILL LOOK AT:
Driver’s licenses, car registrations, insurance
Location of Bank and Brokerage Accounts
Voter’s Registration Address
Locations of Charities, Physicians
Homestead (Husband and wife must have the same – Husband cannot have one here, and Wife have one in, e.g. New York – No “Star” Exemption – even if you actually live in different states)
Address on Tax Returns
Where Declaration of Domicile filed?
Location of Houses of Worship membership, support
Where is most of your time spent?
What does your passport show as your address?
Where is your larger home (if you have more than one)?
What address is shown on a decedent’s death certificate?
Where are you employed?
Just as other states look at the residence of individuals, they will try to pull a trust into their taxing jurisdiction.
FACTS THAT OTHER STATE WILL LOOK AT:
Where the trust says the Settlor is domiciled
What State the trust specifies as “governing law” and/or “situs”
Where the trust assets are located
Where the Trustee is located
Where the trust is administered from
Where the beneficiaries are located.
If you have any other questions about declaring a domicile, or any other estate planning issues, contact one of our West Palm Beach estate planning lawyers today.