What You Need to Know About Domiciling in Florida
- Warmer weather isn’t the only reason so many people decide to change their domicile to Florida.
- There are a number of factors to understand when considering changing your domicile to Florida, including tax implications and intent.
- Coyle Financial is hosting a Domicile Event on September 17th and 18th in Glenview.
Winters in our northern climate can be brutal, though these sunny summer days can make us forget just how cold and dreary Midwest winters tend to be. Come winter, many of us long to move to warmer climates, and for those who own homes in Florida, it may be something to consider.
While warmer weather is a great incentive, it’s certainly not the only reason to domicile in Florida. There are a number of important and interesting factors to consider and understand when changing your domicile to Florida.
First off, Florida has no state income tax. If you’re an Illinois resident, the state tax is approximately 5%. So, if your income is $100,000 per year, you’re paying around $5,000 in state income tax. It may not make a huge difference, but it could be a consideration.
A larger tax implication, though, is estate tax. Currently, at the federal level, estate taxes kick in at $11.4 million for individuals and $23 million for couples. For the majority of people, these amounts aren’t at levels that would affect them.
However, for Illinois, the estate tax thresholds are $4 million for individuals and $8 million for couples, and these taxes can be hefty. The calculations are complicated, but the tax ranges around 20%. For a $10 million estate, you’re looking at approximately a couple of hundred thousand in taxes.
The most important factor in establishing your domicile is intent, and it’s more substantial than simply living in Florida 51% of the year. In addition to spending most of your time in Florida, intent includes a number of factors, such as having the following in Florida:
- Voter registration
- Driver’s license and vehicle registration
- Primary physicians
- Home mailing address
- Place of worship
Coyle’s Domicile Event
Unsurprisingly, many people are moving out of Illinois because the state’s budget is severely underfunded. Additionally, Illinois is looking to increase the state income tax, which will only drive more to leave the state. Many are moving south and considering Florida for their domicile.
If you’re one of those who are considering making the move to Florida, Coyle Financial is hosting a “Turn On, Tune In, Drop Out to Florida Domicile” event. Details are below. We hope you can join us! Until next time, enjoy.
Sunshine State of Mind:
Protect Your Assets with Florida Domicile
Tuesday, September 17th OR Wednesday, September 18th
The Glen Club
2901 West Lake Ave
Glenview IL 60026
Registration begins at 5:45 PM
Appetizers & refreshments at 6:00 PM
Presentation at 6:30 PM
Q&A after the presentation
To reserve your place, please call Karyn at (847) 441-5644
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. He has over 30 years of experience and is the author of Changing the Conversation, Wealth of Everything and co-author of The Business Battlefield. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
Learn more about TransformingWealth™ , our proprietary approach designed to get your arms around the big picture, so you can make informed financial decisions. Ask Gary about Coyle’s TransformingWealth Preview Meeting and schedule a complimentary consultation and start living the Good Life Managed Well™.
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All information is from sources deemed reliable, but no warranty is made to its accuracy or completeness. This material is being provided for informational or educational purposes only, and does not take into account the investment objectives or financial situation of any client or prospective client. The information is not intended as investment advice, and is not a recommendation to buy, sell, or invest in any particular investment or market segment. Those seeking information regarding their particular investment needs should contact a financial professional. Coyle, our employees, or our clients, may or may not be invested in any individual securities or market segments discussed in this material. The opinions expressed were current as of the date of posting, but are subject to change without notice due to market, political, or economic conditions.
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