Thursday, May 19, 2005

Fleeing NJ and NY for FL - What is a Florida Resident?

With all the discussion and speculation circulating around the possible repeal of Federal Estate Taxes, many clients in NJ and NY are beginning the realize that retirement to Florida may have significant tax benefits, beyond the spectacular weather and beaches. Florida does not have any income taxes, though it does have a sales tax and an intangibles tax. More importantly, Florida does not have an estate tax, and its constitution prevents the legislature from ever instituting one. In order to get these benefits, you need to be a Florida resident.

There seems to be quite a bit of mis-information about what it takes to be a Florida resident. The concept of a "6 month rule" is often bandied about - live in Florida for 6 months and you are a resident. However, there is no 6 month rule. Florida residence is governed by Chapter 222.17, F.S. - Homestead and Exemptions.

Essentially, becoming a Florida resident requires 4 simple steps:

1. Obtain a valid Florida driver's license
2. Register your automobile in Florida

3. File for voter registration
4. File a Declaration of Domicile with the Clerk of the Circuit Court in the County where you are residing.

All of this information and much more can be found on the Florida Residency Guide, operated by the State of Florida.

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At 5/31/2005 2:08 PM, Anonymous Anonymous said...

Can an Agent (acting under a Power of Attorney that specifically states that the Agent can change the Principal's domicile) move the Principal from a NJ nursing home to a Florida nursing home and declare them a Florida resident by filing a Declaration of Domicile?

At 5/31/2005 10:10 PM, Blogger Deirdre R. Wheatley-Liss, Esq. said...

A lawyers answer - it depends. Where the Power of Attorney specifically allows the action, it is more likely not to be challanged.

There are 3 basic concerns that govern how an attorney-in-fact (the "Agent") can act under a Power of Attorney granted by a person (the "Principal). (1) Is the action permitted under the statute goveringing powers of attorey,(2) is the action specifically allowed in the document, and (3)in taking the action is the Agent acting in a fiduciary capacity towards the Principal - ie, is the Agent acting for the Principal's benefit or his or her own.

Having said that, we have been involved in several unfortunate circumstances where a family member is forced or chooses to go to court to prevent a parent from coming home or moving to another facility. In those circumstance, a court is likley in New Jersey to appoint a third party, known as a Guardian ad litem, to evaluate the situation and make a recommendation to the court about what would be in the best interests of the Principal. From there it is a coin toss.

Having said that, the granting of a Power of Attorney does not usurp a person's right and ability to continue to make his or her own decision about where and how to live. A Power of Attorney is revocable and grants financial authority. A Guardianship is often needed where a person cannot continue to make his or her own decisions.

At 12/23/2012 1:39 AM, Blogger nasirbd19 said...

non domiciled

Save thousands of pounds in tax by using your unique Non Domiciled tax status to pay no tax on your foreign income.A Non Domicile has very big UK tax advantages.


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