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I'm not sure I completely understand your question ... If you are asking about only YOU moving to FL, then, yes, changing the investments to your name so that there would be not state income tax on the investment income (if you were a resident of Florida) WOULD accomplish that purpose.
Understand that this would essentially be a gift ... but the gift tax exclusion is now at 5,250,000 so that may not be an issue
Both of you simply moving and chan ging your domicile to FL would most certainly be the most adventageous
no state tax on ANYTHING
and all of nthe issue around probate and so forth would all be in one state
We live in FL 6 or more months each year. We know of other couples who have done this, but I didn't knowhow much legal
Another thought, once you start taking money from the IRS, that's ordinary income, and that would also save money on state taxes
work it would take to separate all our investments. You think it would simplify Estate planning, etc. to both move to FL?
When we take money?
Let me look up the residency requirements for IL ... just a sec (sometimes that's the problem... you really have to truly change your domicile to legally change your residence for tax purposes ... just one minute
On the estate planning, yes,
tru;y moving to FL would eliminate the need for what's called ancillary probate
if you don't have proerty in 2 states
We own our home in IL
The, unless you sell, you'll have a hard time proving that you're not really IL residents
We also own our property in FL where we park our trailer 6 or more month per year
We know many couples who own a condo or home in their home State but stay more than 6 months in FL and have become FL residents to avoid their State's Income Tax.
Here we go: .... yes, I understand .. but when faced wit the decision of where you call home, the states that do have income taxes make it hard for you not to fit their definition of resident
Here we go:
Thay may say they jave.... ut it comes down to how the Drpt of revenue defines residency
Looks like you may be OK if you have no EARNED income
see tyhis from IL:
a retired Illinois resident who filed a federal return, you must file Form IL-1040. However, certain types of retirement income (e.g., pension, Social Security, railroad retirement, governmental deferred compensation) may be subtracted from your Illinois income. For more information, see the instructions for Line 5 and Publication 120, Retirement Income.
a part-year resident, you must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if
Ahhh, I lso just found this.... looks like IL isn't neary as aggressive about this as say NY or CA
You are an Illinois resident if you were domiciled in Illinois for the entire year. Your domicile is the place where you reside and the place where you intend to return after temporary absences. Temporary absences may include duty in the U.S. Armed Forces, residence in a foreign country, out-of-state residence as a student, or out-of-state residence during the summer or winter. If you are absent from Illinois for one year or more, we will presume you are a nonresident of Illinois.
Note: If you filed a joint federal return and one spouse is an Illinois resident while the other spouse is a nonresident or a part-year resident, you may file separate Illinois returns. If you file a joint Illinois return, you will both be taxed as residents.
But, of course filing as separate is never as adventageous, in terms of standard dedution
sorry for the typo (standard deductions)
Looks to me that we will gain a lot by both becoming FL residents and file no Illinois forms. Only Federal Forms
Are we done?
Are we done?
Sorry, yes, I would agreee.... was looking to be sure nothing else would hang you up
BUt, again, yes in your situation, especially as you begin to pull on those IRAs you'll msave that full amount of IL tax
"Save" that full amount ...
We do own property in FL for 8 years, pay taxes every year and have an address. I don't think there will be a problem. Yes, and the interest we get from Tax Exempt Municipal Bonds IL makes us add to income. I forgot about that IRA money also.
Nothing illegal there at all, based on ILs definitions