What Is Domicile Planning in Palm Beach County?
Although there are many important aspects of an effective estate plan, your domicile is one factor you shouldn’t overlook. Whether you currently live in Florida or you’re planning a move during retirement, domicile planning could be one of the most crucial steps you take when thinking about the future. What exactly is a “domicile,” anyway? What steps should you take during domicile planning? These are questions that an estate planning attorney in Palm Beach County can help answer.
What Is a “Domicile?”
In the legal world, your “domicile” is your primary residence. This is a place you plan to stay indefinitely in the future, and it may affect various aspects of your estate plan. Although you may have various residences throughout the country (or even the world), you can only choose one legal domicile. This could have implications for taxes, access to government assistance, and estate planning. For many senior citizens, choosing a specific domicile is an important step in the estate planning process. By selecting one jurisdiction, seniors may be able to benefit from laws and opportunities specific to that location.
The Advantages of Domicile Planning
Although strategic domicile planning may allow you to benefit from certain state laws, it can also help you avoid negative consequences. One example is double taxation, which may be an issue if you own property in more than one state. This is especially problematic if you split your time equally between two states. For example, you might spend six months in New York and six months in Florida each year. As a result, you might be considered a tax resident for both of these states simultaneously – raising the possibility of double taxation.
If you do not clearly “establish” your domicile, it may be easier for tax authorities to consider you a resident of numerous jurisdictions at once. Formally establishing your legal domicile is relatively straightforward, but it can have notable benefits.
Establishing your domicile may also streamline probate after your passing. If it’s not clear whether you were a legal resident of Florida, for example, it may be difficult for your beneficiaries to handle your Will or Trust through Florida courts.
Should I Establish My Domicile in Florida?
Many seniors choose to establish their domiciles in Florida. Settling down in the Sunshine State may offer numerous benefits, including the lack of state inheritance and estate taxes. If you choose Florida as your primary residence, you may also benefit from extremely beneficial homestead exemptions.
Can a Palm Beach County Estate Planning Lawyer Help With Domicile Planning?
A North Palm Beach estate planning lawyer may be able to assist with domicile planning. Remember, online research only gets you so far – and it may be difficult to plan for your specific concerns by simply reading online articles. In contrast, an experienced estate planning lawyer can address your unique questions during a consultation. Reach out to Kitroser Lewis & Mighdoll today to get started with domicile planning.
Sources:
investopedia.com/terms/d/domicile.asp#:~:text=It%20is%20the%20place%20where,is%20your%20%22forever%22%20home.
floridarevenue.com/property/Pages/Taxpayers_Exemptions.aspx
