Tuesday, November 7, 2017

Snow bird considerations

We’ve all heard the term “snowbirds”, they typically are folks who head South for the winter. 
If you’re thinking of becoming a snowbird, there are considerations you’ll want to make before you head South. 
You can have multiple residences but only one domicile. There can be many advantages to picking one place over another, several states have no income tax, and others have tax breaks on retirement income and on real estate taxes for older residents. Estate taxes can also be more favorable
in some states than in others. Be prepared to prove that the state you pick really is your home base.
Each state has its own requirements to prove residency, so check the details. For starters, make sure you change your driver's license, mailing address and tax return address. One big mistake people make is they have their income tax return go to the wrong state. The federal government and the state’s share that data.
Check to make sure that all your financial and estate-planning documents — including powers of attorney, wills and medical directives — are all still valid under the laws of your new state.

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