Simplified Guide to Establishing Dual State Residency
Are you considering establishing dual state residency to potentially reduce your tax burden or for other purposes?
Dual state residency refers to being a resident of two different states.
As you can imagine, this process has its own set of rules and requirements, making expert guidance essential in navigating its complexities.
Select Advisors Institute is not a financial firm, but we work with hundreds of financial firms and have guided 1000’s of firms since our inception in 2014. Our founder, Amy Parvaneh, has also been in the financial services industry since 2001, and has worked with financial advisors since 2006.
We can help refer you to the best financial professional that is knowledgable and advanced in this area.
To establish dual state residency, you need to decide on your new state, acquire a residence, establish domicile, update important documents, change your IRS address, register to vote, obtain a new driver's license, file taxes, update your banking information, register your pets (if applicable), and inform your family and friends.
Each state has different laws and benefits related to residency, so thorough research is necessary to select the most suitable state based on your financial requirements. Whether buying or leasing a residence, having a permanent address is crucial to establishing residency.
Also, formalizing the new state as your legal domicile is essential to avoid being double taxed, and it may involve filing a "Declaration of Domicile" in some states.
Additionally, you need to notify institutions such as banks, Social Security, and governmental agencies of your change of address and update your records accordingly. Transferring your driver's license and vehicle registration to the new state further solidifies your residency status. Moreover, you need to file tax returns in the new state and ensure that your credit card billing address and bank account information reflect the new state.
Finally, if moving with pets, you will need to adhere to the new state's pet registration and licensing requirements within the specified timeframe. Announcing your relocation to your network completes the process.
It's essential to weigh the pros and cons and seek professional advice when considering relocating to states without income taxes.
At Select Advisor's Institute, we can refer you to our favorite financial advisors who have a deep understanding of tax planning intricacies and can help you confidently navigate the establishment of dual state residency and preserve your wealth.
Schedule a meeting with our team today to determine the best course of action based on your unique circumstances.
Our founder, Amy Parvaneh, has worked with hundreds of financial firms since 2006. She can help you navigate the wealth management landscape and find the most ideal financial advisor around your most complex financial questions!
Schedule a meeting with our founder, Amy Parvaneh, to meet some of her Favorite Financial Advisors around this matter.
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