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Nebraska residents would have to pay an inheritance tax,
however the question in this case is whether the person is truly a NE resident,
In order to prove that the person is not a NE resident their is a residency test that has to be met
esidency is defined as the location of your main home. It's where you go when you come back from vacation or from a temporary job or business trip. It's where you hold a valid driver's license, where your mail is sent, where your immediate family lives, where you enroll your children in school and where you register to vote. The preponderance of connections to a place determines your state of residency.
Additional evidence includes car registration, purchase of property and payment of property taxes, establishing a bank account and joining a local church or a civic or business organization.
What are the details of the residency test? Also, all assets of this out-of-state resident are included in a revocable living trust whose implementation is goverened by North Dakota laws where the resident lived for 91 years before moving to the Nebraska nursing home for 22+months.
The test is based upon numerous factors, also intention,
She would have to prove that she intended to live in ND, and that all her assets, family, and history is in ND.
If she has all her official documents, and tax returns in ND, than she can argue that ND is her state of residence, even though she has resided in a nursing home in Nebraska,
She died November 18 in a nursing home in the Nebraska town where her closest relative lives. This relative also was sole trustee for her trust. The trust's address was/is this town in Nebraska. However, ALL her "history" is in ND. She resided in ND for 91 years and lived in Nebraska 22+ months -- only after she lost all memory. Due to her dementia she never even knew she had moved to Nebraska.
During her brief stay at the Nebraska nursing home she paid taxes in both ND and NE.
Does she have any assets or property in Nebraska?
To make a change of legal residence, the individual must have a physical presence in another state, show intent to establish residence in that state, and intends to abandon the prior residence
According to NE law, as linked above,
she can argue that since she had no mental capacity when she moved to NE,
she could not intend to live in NE or move out of ND,
An individual’s domicile, once established, continues until a new, fixed, and permanent home is acquired. No change in domicile results from moving to a new location if the individual’s intention is to remain only for a limited time, even if it is several years. An individual declaring a change in residency must show an intention to establish a new domicile while he or she is physically present in the new location for other than a temporary purpose.
An argument used in similar cases,
is that she never or could have never intended to change her domicile, as the nursing home was not meant to be a permanent home, but temporary,
An argument made is that if she was better, she would have moved out back to ND
She maintained ownership of ND farmland and other financial assets (investments) while she lived in the NE nursing home. ALL of these assets were included in the trust document whose mailing address was in Nebraska. How does that situation affect any possibility of paying Nebraska inheritance taxes?
If the mailing address of the trust is the only evidence of NE residency, but she had assets in ND,
and she never intended to make NE her permanent home, she has a strong argument under NE laws that she is not a state residence,
It is my understanding ND residents pay no inheritance tax but NE residents do...so this matter has significant financial implications.
Nebraska tax law states the following:
An individual’s domicile, once established, continues until a new, fixed, and permanent home is acquired. No change in domicile results from moving to a new location if the individual’s intention is to remain only for a limited time, even if it is several years.
Yes, their is a major tax issue here, and I would hire an NE tax attorney to review the law to make sure you can avoid the tax, I can tell you this is a common situation, and in my review of the law and the facts, she never intended to live in NE permanently,
and has a strong argument, that her domicile never changed from ND, and since she has her home in ND, and other ties, the change of domicile and residency was never established
Her ND house was sold 3 years ago. She then moved to various nursing facilities in ND for @1.5 years before transferring to a NE facility in order to be near her closest relative for her final 22+ months of life.
If she sold her home, and cannot argue that if she was better she would not have moved back to ND, than her domicile would be NE, since she decided to live their permanently.
The argument can still be made, but it is clearly harder if she cannot argue that she has some property back in ND that she would have moved to if she was better
Her life-long intent always was to continue living in ND -- and eventually die in ND. All her friends, neighbors and relatives can easily attest to those wishes. In fact, during emotional discussions with her, she told me she would rather "die at home" than move to any care facility. The financial reality of all of this is the fact I had to sell her home in order to pay for her continued care and various nursing home residencies.
That is different than what you stated above,
You stated She then moved to various nursing facilities in ND for @1.5 years before transferring to a NE facility in order to be near her closest relative for her final 22+ months of life.
If it is the later proposition, than you can argue that her intention was to return and live in ND,
If you have any further questions please do not hesitate to ask
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