Joan Rivers Will set forth that she was a resident of New York (State), but her domicile was in California (the state she intended to return to). Joan often traveled between the two states. California has no estate tax; New York does. Joan River's estate has been estimated by some to be $150 million. ( No one really knows the true value of the estate, since the bulk of the estate was in a trust). Because of the high net worth, the question of domicile becomes very important indeed.
For most retirees who may live only part-time in one state or have a second home(s) in other state(s) it becomes an interesting and important issue of where they are domiciled.
To establish domicile in a state it is suggested that the following can establish your 'domicile' - having bank accounts; having employment in that state; having a mailing address; a driver's license; vehicle registration; voter registration; having established contacts in that state, e.g. physicians, attorney; attendance/membership in a church; filing federal and state income taxes naming that state; insurance records; and having the state listed on your passport can establish 'domicile'. One other question - Where was your Will filed? In the case of Joan Rivers, her Will set forth that she was a resident of New York.
The issue is critical for some, since estate taxes vary by state as do inheritance taxes. ( Courts have even held that a husband and wife can have different legal domiciles if they are in a non traditional marriage and live separately but are legally married.)
Kiplinger Magazine (August, 2014) listed the ten least friendly tax states: California, Connecticut, New Jersey, New York, Hawaii, Rhode Island, Maine, Minnesota, Vermont and Illinois.
And the ten most friendly states that made the Kiplinger list (2014)? They were: Delaware, Wyoming, Louisiana, Mississippi, Alabama, Arizona, Nevada, New Mexico, South Carolina and West Virginia.
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