choosing domicile

[stepside454]

We are in the learning stages in our preperation to full time in the next few years. We are Missouri residents, however Missouris taxes arent in a fulltimers favor so im trying to compare pros 7 cons of some of the common states fulltimers do use. I also always get confused withthe definitions of domicile & residency.
Did some of you choose one state, later leqarning another is better ? does Texas have some advantages over say SD, or Florida ? your answers are appreciated

[paz]

Texas, South Dakota and Florida are the most popular states for full-timers, although there are others. The primary reason is a favorable tax situation (no state income tax, no inheritance tax, etc.), but these states also make it easy to establish residency.

We initially considered both Texas and South Dakota because of a good selection of mail forwarding services in these states. Escapees RV Club located in Livingston, TX, has one of the best mail forwarding services for RVers on the planet. We use Alternative Resources in SD, but there are also several others in that state. I haven't heard anything bad about any of them.

We ended up in SD because vehicle insurance was $800 a year less than Texas. If you have to buy your own health insurance, Blue Cross-Blue Shield of SD will not cover full-timers, so health insurance may cost you more in SD. We had subsidized health insurance from my former employer, so that was not a problem for us. Medicare is also not a problem.

Another downside to Texas is vehicle inspections are required. You don't have to worry about it when you're out of state, but you have to get your vehicle(s) inspected any time you go back into Texas.

Domicile has a legal connotation, and it is where you register your vehicles, get your drivers license and register to vote. You may reside anywhere you want. However, some states that have income taxes may try come after those taxes if you have ties to that state such as owning property.

[Vegasdan]

I second to what paz says. I use a mail forwarding service and domicile out of Madison, SD. If you plan on keeping your residence in Missouri, you may have problems with a domicile in another state, check before you leap.

[RickO]

We went with Texas and Escapees and have been pretty happy with the process. As Dan says, if you plan on keeping your home in Mo, you might have problems claiming another state as your domicile.

We just purchased a town house in Az and their laws are pretty favorable with regard to residency. I think in order to keep attracting snowbirds, they allow one to own property and reside here for up to 9 months per year without claiming you as a resident for tax purposes.

good luck...

Rick

[Clay L]

We were ready to move our domicile from NH because of very high registration and license plates each year ($1800 total for car and motor home in 2004) and because they tax interest and dividend income.

Our two possibilities were TX and SD. We were traveling through SD and did not plan on visiting TX for a year or so. Because of that we chose SD even though I am a native Texan. If we had been close to TX we would have picked it.

You can own homes in as many states as you wish and have your domicile is any state you wish.
There is a good explanation of domicile and residency HERE

[stepside454]

we wont have any ties to MO, so thats not a problem.

[dons2346]

Me being a real Texan, wanted to establish residence back home. After looking at vehicle insurance,it was decided to go to SD which is way cheaper. License fees were about the same.

The big concern is with your health insurance. This is the most important thing to consider when looking at where to reside.

[stepside454]

Is health insurance that much more affordable with a SD domicile ?

[Vegasdan]

Quote:

Originally Posted by stepside454 Is health insurance that much more affordable with a SD domicile ?

No, and health insurance from SD won't help you much outside SD. Vehicle insurance, on the other hand, is much less expensive when your address is SD.

[stepside454]

Thanks. So if you have a SD domicile, is it difficult to get health care outside SD ?

[Clay L]

Quote:

Originally Posted by stepside454 Thanks. So if you have a SD domicile, is it difficult to get health care outside SD ?

When we had the Assurant policy we had no problem getting care anywhere in the U.S.
We now have Medicare with a AARP supplemental policy and no problems now either.

[LindaH]

Quote:

Originally Posted by stepside454 I also always get confused withthe definitions of domicile & residency.

You can have several residences (think Snowbirds who own a house in the north and a house in the south, or someone who owns a vacation house in the mountains), but you can have only one domicile. Your domicile is where your vehicles are registered, where you have your driver's licenses, where you are registered to vote, etc.

There ARE differences among Texas, South Dakota, and Florida (as someone stated, the most popular domicile states), and which is really best for YOU will take some research on your part. Just because State "A" is better for one person, doesn't make it the best one for YOU.

[LindaH]

Quote:

Originally Posted by RickO We just purchased a town house in Az and their laws are pretty favorable with regard to residency. I think in order to keep attracting snowbirds, they allow one to own property and reside here for up to 9 months per year without claiming you as a resident for tax purposes.

You might want to check on this before you spend nine months in Arizona! I've heard 180 days, which is a few days shy of 6 months. We spend the winters in Arizona and make sure we don't stay in the state more than 180 days in any one calendar year! Arizona has an income tax and outrageous vehicle registration fees, so you don't want to run afoul of their domcile laws!

[Vegasdan]

Quote:

Originally Posted by stepside454 Thanks. So if you have a SD domicile, is it difficult to get health care outside SD ?

You really have to look at each state's insurance laws and how other states look at a non resident. We carry a group health insurance plan from Nevada from my former business and will have that until we go on Medicare in a year. When we are not in Nevada our health insurance will only cover an emergency hospital admitance. But since we are both healthy we see our doctors when we travel back through Nevada several times each year, so it works out for us. If we need care on the road (and, no we do not have a house in Nevada), we see a med tech at Walgreens or go to Urgent Care and pay. It's easier for us to use it this way as we are rarely in SD.