A person may possess many properties, but their “domicile” is considered their principal home. A domicile is a location where an individual has a fixed and permanent residence. Why is having a domicile so important? Your domicile affects your citizenship, voting rights, taxes, and estate planning. When you establish your domicile in Florida, you may benefit from the state’s exemption from state income, estate, and inheritance taxes and its broad Medicaid planning choices. If you are a new resident or want to relocate to Florida, speak with a domicile planning lawyer in Palm Beach County. The Millman Law Group, founded by Aaron Millman, Esq., CPA, is here to guide you through the process and help you enjoy the advantages of a Florida domicile. 

What Is The Difference Between Residence and Domicile? 

Residency refers to your physical presence in the state, whereas domicile means you have a permanent home in Florida. Renting or owning property in Florida and spending significant time there are frequent strategies to prove Florida residence. This is frequently how “snowbirds” obtain residency.

However, such individuals are still considered official residents of their home states, which means they pay taxes there, and even if they die in Florida, their estates will be handled according to the laws of their home state. If you create a domicile in Florida, you will pay Florida taxes, and your estate will be allocated under Florida law after your death. Depending on your estate planning goals, you may choose to establish residence before declaring domicile in Florida. 

The Process of Establishing a Domicile in Florida 

The first step in this procedure is to meet with your domicile planning lawyer in Palm Beach County. At The Millman Law Group, we can help you guarantee that no crucial processes are overlooked and that all material is properly delivered. Establishing a domicile in Florida includes two necessary steps. 

First: The Bright Line Test

This requires you to physically dwell in Florida for at least 183 days of the year or spend no more than 183 days in another state. Your lawyer can advise you on appropriately demonstrating your residency in the state for the required period. 

Second: The Subjective Test

The second step, the Subjective Test, begins next. There are various ways in which you may establish your domicile in Florida. You will find a thorough checklist on our website, which covers the following:

• Submit a Declaration of Domicile in your county
• Register your vehicles in Florida
• Update deeds to include Florida as your residence 
• Register to vote in Florida
• Update your insurance policies with your Florida address 
• Change your estate planning documents to Florida and name Florida as your residence 

The Advantages of Establishing Your Domicile in Palm Beach County, Florida

What are the benefits of hiring a domicile planning lawyer in Palm Beach County? Establishing a Florida domicile might have a substantial influence on your estate planning. Florida has no state income, inheritance, or estate taxes and does not tax retirement income or Social Security benefits. There are also certain exemptions for property taxes. 

Florida also has robust asset protection laws, which allow you to shield your investments from creditors. Florida is also among the states that provide Lady Bird deeds, which are more flexible than typical life estate deeds.

Establishing Florida as your principal residence and domicile is necessary to maximize your estate planning benefits in the Sunshine State. 

Contact The Millman Law Group and Your Domicile Planning Lawyer in Palm Beach County

Millman Law Group, PLLC is one of the only law firms that offers life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team specializes in special needs trusts and catering to any age demographic because we know that it’s never too early to start preparing for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, LinkedIn, and Pinterest. You can also contact us at 561-463-6480.