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Virginia Beach Estate Planning Lawyer / Blog / Estate Planning / Official residency has estate-planning implications

Official residency has estate-planning implications

Many people live in different states at the same time; euphoria and confusion come to mind.

In a physical sense, however, we are all in only one place at one time, although some people enjoy having homes in different locales. While folks who live half the year in, say, South Carolina and the other six months in North Dakota may think of themselves as residents of both states, for legal purposes they have to pick one.

“You may own property and pay real estate taxes in both states, have bank accounts in both states, register cars in both states, buy insurance in both states but you really only live in one state and you are visiting the other state,” states a recent article on the website of Boston’s CBS-TV affiliate.

Like it or not, people who have more than one home in different states have to pick one for official purposes, and they should make an informed decision regarding estate planning issues in doing so.

“And it’s the laws of that state which will dictate your estate planning,” the Boston article states. “If you have lots of money you will want to decide which state would be advantageous to die in.

“The Federal exemption, the amount you can give away without incurring federal estate taxes, this year is $5,250,000. So most individuals dying between now and December need only worry about Massachusetts’ estate taxes. Check the estate tax laws of the state you are considering moving to. Many states are now implementing an estate tax upon the death of their wealthy residents.”

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