A residence is a location where one may live part-time or full-time. A domicile is a person’s legal address, and it is located in the state where an individual pays taxes. In this sense, domicile is where a person plans to have their permanent home. It is the place they eventually intend to return to if they reside in another place for a brief time. A residence, on the other hand, is the place one temporarily lives.
Florida Statute §222.17 states that a person can show intent to maintain a Florida residence as a permanent home by filing a sworn Declaration of Domicile with the Clerk of the Courts. They can submit the form with all the requirements by mail or in person at their local County Courthouse or applicable government office.
Domicile generally refers to where one lives, i.e., their residence that they intend to keep for the foreseeable future. The stated domicile has legal consequences for tax, probate, asset protection, and numerous other purposes.
Domicile is the state where a person has his or her true and permanent home. For military members, it is the place to which the member intends to return at the conclusion of his or her military service. It is the place that they consider their permanent home. Depending on their service, and local policies, an active-duty military member can change their legal residence by visiting their local base legal office and/or base finance office and completing a DD Form 2058, State of Legal Residence Certificate.
In order to establish Florida residency, one needs to formally establish permanent residency or domicile in Florida. Just having a Florida address is often insufficient, especially if a person still owns real estate in another state. Fortunately, becoming a bona fide Floridian only requires a few straightforward steps as follows: Apply for a Florida Driver’s License; Register Vehicles in Florida; File a Declaration of Domicile; Register to Vote in Florida; File a Homestead Declaration; Obtain Florida Employment; Enroll children in Florida Schools; Get Involved in the Local Community; Move and/or Start a Florida Business and possibly Update one’s Estate Planning Documents.
Further, if an individual owns homes in more than one state and wants to make Florida primary, using one’s Florida address for bank accounts and insurance policies, among others, helps establish Florida domicile. Transferring one’s banking to Florida-based financial institutions can also serve as evidence, as well as updating newspaper or magazine subscriptions to a Florida address.
Finally, remember to update an estate plan to Florida specific documents. For those who have a trust, this may involve having a Florida amended and restated trust prepared. For others, having a Florida Last Will & Testament prepared, as well as a Florida Durable Power of Attorney(for financial matters) and Florida Healthcare documents(for medical purposes and decisions) may suffice.
An Important Note: There are differences in how a legal state of residency is determined for various purposes. For example, Florida courts often determine legal residency for asset protection purposes based upon Florida Statute Sec 222.17. However, the rules for bankruptcy are quite different, and if this is a person’s situation or concern, consultation with a bankruptcy attorney will be critical.
For tax purposes, generally, one would need to establish that they are living in Florida for a total aggregate period of at least 6 months of the year. For people migrating to Florida, it is always recommended consulting with a tax professional in their former home state to assure a smooth and effective transition. For all other purposes, there is no waiting period for becoming a Florida resident.
Choosing a legal state of domicile can be an especially crucial decision for individuals who spend most of their time traveling the country by Recreational Vehicle. Expectedly, Florida is one of the most popular selections due to the low taxes, competitive insurance rates, and relative ease of maintaining driver’s licenses and vehicle registrations.
Along with the subjects encountered by new and part-year residents discussed above, “RVers†also need to establish a genuine Florida address where they can receive mail. A Post Office (P.O.) box will not suffice for residency purposes, but there are commercial mail-service companies that allow you to maintain a physical address in Florida. Receiving important mail at that address lets one demonstrate sufficient residency to register vehicles and obtain a driver’s license. Interestingly, though, if you are a full-time RVer, the license plate number on your Florida-registered RV (not the mail-service address) will serve as the “address†on your driver’s license. That means updating the vehicle’s registration needs to come first.
Again, there are very real advantages to becoming a legal resident of Florida. As already mentioned, Florida is well-known for its low-tax, business-friendly legal and regulatory environment. And, if estate planning is on one’s mind, they will be hard pressed to find a state with stronger asset-protection laws. In fact, Florida homestead and other home ownership laws provide asset protection, securing a primary residence from creditors’ attachment and steep property tax increases. Consequently, applying for a homestead exemption is another effective way to show one’s intent to make Florida their permanent legal home.
If an individual or family owns a Florida home that serves as their primary residence, they can claim a homestead exemption by filing an application with the county Property Appraiser of the county where the home is located. The exemption lets one exempt up to $50,000 of the home’s value from property tax calculations. Even if the property’s value increases dramatically, a person will not get impacted by big tax increases since Florida’s Save Our Homes Amendment limits yearly increases in assessed value to either three percent or the CPI-measured rate of inflation (whichever is lower).
Therefore, if an individual spends time at homes in two different states, considering Florida “primary†allows an individual to save on income and property taxes and protect their home’s value. Accordingly, the act of applying for a Florida homestead exemption serves as further evidence of one’s intent to treat Florida as their permanent state of domicile. All the foregoing allows an individual to ultimately take advantage of the many benefits of establishing Florida permanent residency or domicile.
If there are any additional QUESTIONS regarding the foregoing matters, or you would like to discuss your legal concerns or issues, please contact, or call the Attorneys at CASERTA & SPIRITI in Miami Lakes, Florida at Tel. # (305) 463-8808.