Florida domicile is highly profitable which is one of the main reasons for Florida’s continued population growth, even in the face of hurricanes, foreclosures, and oil spills. Florida has no state income tax or state inheritance tax. While most states charge an additional ten (10) to fifteen (15) percent for Federal Estate Tax, Florida allows you to die in peace knowing that no one will pursue any assets you leave to your family.
In addition, Florida even allows some tax credits, including the Federal Estate Tax credit and the Homestead exemption that allows a property tax credit in your personal residence. Florida is truly the ideal place to call your home both in life and in death. What if you actually live elsewhere? Can you still call Florida your state of residence? Yes you can.
Contrary to popular belief, there is no six month one day rule for claiming Florida as your domicile. You can live in Florida for two weeks per year and still think of it as your “state.” Determining whether the client has the possibility of multiple residency is a factual question. The term “domicile” has been defined as a person’s place of residence plus the intention that the residence is permanent and not temporary. No single definition provides sufficient criteria for determining domicile in all cases.
Any client who has significant contact with more than one jurisdiction has the potential for multiple residencies. In most cases, the problem only arises after death when litigation is usually the only solution. Multiple residencies can result in multiple death taxes, probate delays, and additional fees.
When faced with an uncertain residency question, courts look at the manifestation of a person’s intentions. There is no single controlling factor; all actions, statements and behaviours, ways of life, connections, associations and interests must be considered. Individual intentions must be ascertained from the overall picture.
Our estate planning attorneys work from a domicile checklist to ensure that there is evidence that will demonstrate to a probate court that you are actually a Florida resident, even if you rarely live in Florida. For more information about making Florida your domicile, please schedule a free consultation with one of our estate planning and asset protection attorneys.