Residency for full timing

[Hossandjo]

We plan to retire later this year. We've researched the tax laws etc in various states and pretty much decided to use South Dakota as a residency state. Can anyone provide any specifics on the procedure involved? Mail? License? Registration? Insurance? What about banking? Is it best to have your deposits, savings and checking in a bank in your state of residency?
If any of you can tell me why I shouldn't use S.D. I'd appreciate hearing from you too.

[Clay L]

We use Alternative resources in Sioux Falls. They led us by the hand on the entire process including title changes, vehicle registration and voter registration. There is a drivers license office about 100 feet away from their office and an insurance broker/agent next door. They do charge for the service but it was worth it for us. We renew our plates on-line now.
There is a lot of info on their site HERE

As far as bank accounts and so forth you might want to read THIS

[LindaH]

We, too, use Alternative Resources in Sioux Falls...have since early 2002 and have been very happy with their services.

Auto registration can be done by mail (forms available for download on the Web) and then, once registered, you have 90 days to get to SD for your driver's licenses and register to vote. Be sure to read A.R.'s discussion of the new law regarding driver's licenses and what you have to bring with you and how to fill out the form.

As for banking, we do not have a SD bank...we have continued to "bank" with out broker, Fidelity Investments. In today's era of Internet banking, there is no reason to have a sticks and bricks bank in your state of domicile.

[paz]

We, too, use Alternative Resources. They will help you with anything you need to know. they have one gal in the office who is responsible for helping clients with vehicle registration and driver's license.

The registration can be handled by mail, but you will need to show up in person for your driver's license because you have to surrender your old license, have photos taken, and take an eye test.

For insurance, there are many good agencies out there. We have Progressive insurance that we originally purchased through Miller Insurance Agency. They specialize in RV insurance, and they know what full-timers need for whatever state you choose for a domicile.

For banking, if your old state has an income tax and is aggressive at collecting taxes, it is best to have your banking in your city of domicile because it helps erase any doubts of your intention to make the new state your home. Our old home state was PA, which does not tax pensions, SS, or IRA proceeds. Since we have no other income, we kept our old bank because we had a lot of automatic payments set up that we didn't want to redo.

[LindaH]

Quote:

Originally Posted by paz For banking, if your old state has an income tax and is aggressive at collecting taxes, it is best to have your banking in your city of domicile because it helps erase any doubts of your intention to make the new state your home.

That might be true if the bank you are using in your "old" state was a local bank that had offices just in that state. However, if you're using one of the national banks...Bank of America, Citi, etc....all you need to do is change your address on your account.

[paz]

Quote:

Originally Posted by LindaH That might be true if the bank you are using in your "old" state was a local bank that had offices just in that state. However, if you're using one of the national banks...Bank of America, Citi, etc....all you need to do is change your address on your account.

You do have to change the address on your account, even if its a local bank. But you're correct that your old state wouldn't have much to question if it were a nationwide bank or an online bank.