floridadomicile
Why should you move to Florida and declare domicile?
By: Mike Kilbourn, Kilbourn Associates
Before discussing the benefits of making Florida your home, it is important to distinguish between "residence" and "domicile." You may have more than one residence in more than one state, but only one of them can be your domicile or permanent home.
Where you are domiciled is a question of intent and is often based on objective factors such as where you spend most of your time, where you vote, etc. If domicile is not properly established, two or more states may claim domicile and impose estate and inheritance taxes.
If you are contemplating a change in your domicile to Florida, but are not sure, consider the following benefits:
No Income Tax
Short and to the point. Florida has NO state income tax. This could represent a substantial savings to you and your family.
Asset Protection
When you establish Florida domicile, some assets are protected from the claims of creditors. Those assets include your home, life insurance, annuities, IRA, and assets held in a properly structured Florida corporate entity.
Estate Taxes
Starting this year, the Federal government no longer shares estate tax revenues with the states. In response, many states have "decoupled" from the Federal estate tax system and have established separate estate taxes that add to the Federal tax.
This additional state tax increases the total estate tax due at your death. Florida is one of only three states that has a state constitution that does not allow the imposition of a decoupled state estate tax.
Homestead Tax Exemption
Florida provides taxpayers who own a permanent residence a $50,000 homestead exemption against real property taxes. In addition, any residence that qualifies for the homestead exemption is entitled to a cap of three percent per year on the percentage increase of the valuation for tax assessment purposes. Also, under Florida law there are special safeguards in the homestead for a spouse and any minor children of a homeowner.
Estate Planning
Florida is home to a significant number of top wealth and estate planning professionals who can assist you in managing and planning your estate. In addition, the laws of Florida are very favorable towards estate planning issues.
For example, a Florida trust can be designed to last up to 360 years, serving several generations of your family - without the imposition of estate taxes at each generation.
Establishing your intent to make Florida your primary residence is not difficult and provides many benefits for you and your family. For specific questions about your domicile, visit FloridaDomicileHandbook.com.
By: Mike Kilbourn, Kilbourn Associates
Before discussing the benefits of making Florida your home, it is important to distinguish between "residence" and "domicile." You may have more than one residence in more than one state, but only one of them can be your domicile or permanent home.
Where you are domiciled is a question of intent and is often based on objective factors such as where you spend most of your time, where you vote, etc. If domicile is not properly established, two or more states may claim domicile and impose estate and inheritance taxes.
If you are contemplating a change in your domicile to Florida, but are not sure, consider the following benefits:
No Income Tax
Short and to the point. Florida has NO state income tax. This could represent a substantial savings to you and your family.
Asset Protection
When you establish Florida domicile, some assets are protected from the claims of creditors. Those assets include your home, life insurance, annuities, IRA, and assets held in a properly structured Florida corporate entity.
Estate Taxes
Starting this year, the Federal government no longer shares estate tax revenues with the states. In response, many states have "decoupled" from the Federal estate tax system and have established separate estate taxes that add to the Federal tax.
This additional state tax increases the total estate tax due at your death. Florida is one of only three states that has a state constitution that does not allow the imposition of a decoupled state estate tax.
Homestead Tax Exemption
Florida provides taxpayers who own a permanent residence a $50,000 homestead exemption against real property taxes. In addition, any residence that qualifies for the homestead exemption is entitled to a cap of three percent per year on the percentage increase of the valuation for tax assessment purposes. Also, under Florida law there are special safeguards in the homestead for a spouse and any minor children of a homeowner.
Estate Planning
Florida is home to a significant number of top wealth and estate planning professionals who can assist you in managing and planning your estate. In addition, the laws of Florida are very favorable towards estate planning issues.
For example, a Florida trust can be designed to last up to 360 years, serving several generations of your family - without the imposition of estate taxes at each generation.
Establishing your intent to make Florida your primary residence is not difficult and provides many benefits for you and your family. For specific questions about your domicile, visit FloridaDomicileHandbook.com.
