Establishing State Residency: 36 Ways to Make it Real
Nick Hodges, CPA/PFS, MBA, CFP
Establishing state residency is a highly subjective matter. A simple checklist of actionable items does not guarantee proof of residency if the taxing authorities from your former state decide to scrutinize your situation. However, creating a strong history of objective factors can help you credibly challenge an inquiry.
Creating a strong history includes taking actions that involve generating public information documents such as tax returns, shipping or voting receipts, utility and rental bills, banking and investments statements, and letters of instruction or confirmation utilizing your address in the new state. Listed below are a number of objective, recordable actions you can take to help solidify your intent to establish residency in any state.
Home
- Purchase or lease a residence in the new state
- Move into home/apt in new state, shipping works of art, furniture, and heirlooms to new state.
- Retain any shipping receipts as proof of transfer
- File a homestead exemption in new state, if available
- Sell any real estate owned in the former state
- Discontinue any lease arrangements in the former state
- Use address in new state for school enrollment
Auto
- Acquire driver’s license in new state
- Relinquish former state driver’s license
- Acquire new vehicle license plates in new state
- Relinquish former state vehicle license plates
Banking & Investment
- Open new bank, safe deposit box, and investment accounts in the new state
- Transfer assets to new bank and investment accounts in the new state
- Change address on any out of state investments
- Transfer contents of safe deposit box to new location
- Change address on all credit cards
- Consider selling business interests in former estate
Voting
- Register to vote in the new state
- Create a history of voting in new state
- Discontinue voting in your former state
Taxes
- File federal tax return with new state address
- File state return as resident in new state
- File non-resident return in former state for any income generated in former state after your move
Legal
- Execute legal and estate planning documents in new state (revisions or amendments to any documents already in force)
- Refer to the address in the new state on all legal and trust documents
Memberships & Affiliations
- Affiliate with a church or temple in new state
- Affiliate with new associations and organizations in new state
- Consider disaffiliation with former church/temple, association, and/or organization in former state by letter of withdrawal
- Enroll children in extra-curricular activities (sports, classes, lessons) to the new state
- Discontinue children’s extra-curricular activities (sports, classes, lessons) in the former state
Other
- Change passport address to the new state
- Plan family gatherings in your new state
- Consider buying a funeral plan in your new state
- Consider canceling any funeral plans in your former state
- Change your primary care physician to one in your new state
- Designate a hospital in your new state in your medical insurance preferences
Changing your state residency is something that you need to do with some foresight, planning, and time. Establishing a strong history of activity and ownership over time can provide you a history that helps protect your future.
These kinds of conversations are all part of our overall services to our clients at NCH Wealth Advisors. Please contact our office if you have any questions: (866) 729-6425. We are happy to help provide the direction you need.
Please feel free to pass this along to anyone you think might benefit from this information. We appreciate all referrals.
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