Snowbirds who split time between northern and southern states face unique estate planning challenges that year-round residents never encounter. Owning property in multiple states, maintaining dual residences, and navigating different state laws all complicate planning in ways that require specialized attention.
Our friends at Yee Law Group Inc. discuss how snowbirds need careful coordination addressing property in different jurisdictions, domicile determination, and state-specific legal requirements. An estate planning lawyer experienced with multi-state issues helps snowbirds create plans that work properly across all locations where they live and own property.
We’ve compiled eleven important estate planning tips specifically for snowbirds maintaining homes in multiple states.
Establish Clear Legal Domicile
Domicile determines which state’s laws govern your estate and where you pay income and estate taxes. You can only have one domicile despite owning homes in multiple states.
According to domicile determination guidance, factors proving domicile include where you vote, maintain driver’s licenses, register vehicles, file tax returns as residents, and spend the most time. Ambiguous domicile creates tax disputes and legal complications.
Document your domicile choice through consistent actions across all these factors.
Use Trusts to Avoid Ancillary Probate
Real estate owned in multiple states requires separate probate proceedings in each jurisdiction unless held in trusts. These ancillary probate proceedings cost thousands per state and create significant delays.
Revocable living trusts avoid ancillary probate entirely. Single trust administration handles all property regardless of location, saving substantial time and expense.
Transfer all real estate into trusts to eliminate multi-state probate requirements.
Review Estate Plans Under Both States’ Laws
Estate planning documents must comply with laws in all states where you live and own property. What works in one state may not function properly in another.
We review plans under both states’ legal frameworks to verify:
- Document validity in both jurisdictions
- Proper execution under each state’s requirements
- Powers of attorney meeting both states’ institutional standards
- Tax planning addressing both states’ estate tax rules
Understand Different State Estate Tax Rules
Some states impose estate taxes while others don’t. State exemption amounts and tax rates vary dramatically from federal rules and between states.
Snowbirds must plan for estate taxes in all applicable states. Your domicile state’s estate tax applies even if you own property elsewhere. States where you own real estate may also impose taxes on property located there.
Comprehensive tax planning addresses all potential tax exposures.
Maintain Separate Documents for Each State When Necessary
Some snowbirds benefit from separate powers of attorney or healthcare directives for each state, particularly when institutions in one state reject documents executed under another state’s laws.
Having documents specifically drafted under each state’s requirements eliminates institutional resistance to out-of-state forms.
Coordinate Healthcare Directives Across States
Healthcare powers of attorney and living wills should be accessible and valid in both states where you live. Medical emergencies don’t wait for document retrieval from distant locations.
Keep copies of healthcare directives in both homes and provide them to physicians and hospitals in each location.
Plan for Incapacity in Either Location
Incapacity can strike while you’re in either state. Estate plans must provide for immediate assistance regardless of where health crises occur.
Name agents under powers of attorney who can reach either location quickly. Document locations of important papers in both homes. Provide fiduciaries with keys or access to properties in both states.
Address Property-Specific Issues in Each State
Different states have different property laws affecting ownership, transfer, and taxation. Community property states like Arizona follow different rules than common law states.
We help you understand how each state’s property laws affect your specific real estate holdings.
Verify Powers of Attorney Work in Both States
Financial institutions sometimes reject out-of-state powers of attorney. Snowbirds should test whether banks and brokerages in both locations will accept their documents before emergencies arise.
If institutions express concerns, create state-specific powers of attorney or update documents addressing institutional requirements.
Plan for Homestead Exemption Implications
Homestead exemptions protecting primary residences from creditors typically apply to only one property. Determine which home qualifies for homestead protection under your domicile state’s laws.
Claiming homestead in the wrong state can undermine domicile assertions for tax purposes.
Update Plans When Changing Time Allocation
If you change how much time you spend in each state, review domicile implications and tax consequences. Substantial shifts in time allocation may affect which state you’re domiciled in.
Significant changes warrant professional review verifying your plans still work under current circumstances.
Common Snowbird Planning Mistakes
Multi-state residents often make preventable errors:
- Unclear domicile creating tax disputes
- Real estate titled personally rather than in trusts
- No planning for ancillary probate
- Assuming one state’s documents work everywhere
- Neglecting to consider both states’ estate taxes
- Not maintaining healthcare directives in both locations
Determining Your Primary State for Tax Purposes
Tax authorities look at multiple factors determining domicile:
- Where you spend more than 183 days annually
- Voter registration location
- Driver’s license state
- Vehicle registration
- Professional licenses
- Club memberships and community ties
- Location of important personal property
Consistency across all factors strengthens domicile claims.
International Snowbirds
Snowbirds spending time in foreign countries face additional complications involving tax treaties, foreign property laws, and international estate administration.
Canadian snowbirds in Florida or Arizona need specialized planning addressing both U.S. and Canadian requirements.
Coordination With Financial Advisors
Snowbird estate planning should coordinate with tax advisors and financial planners in both states. Comprehensive planning addresses income taxes, investment strategies, and estate planning holistically.
Document Storage in Multiple Locations
Keep copies of estate planning documents, powers of attorney, and healthcare directives in both homes. Also provide copies to named fiduciaries and physicians in each location.
Emergencies don’t allow time to retrieve documents from distant states.
Regular Review for Multi-State Residents
Snowbirds should review estate plans more frequently than year-round residents because changes in either state’s laws, tax rules, or your time allocation all affect planning.
Annual reviews verify plans remain current under evolving circumstances.
When Professional Coordination Becomes Important
Complex multi-state situations benefit from attorneys licensed in both states or coordination between attorneys in each jurisdiction. This ensures comprehensive planning addressing all applicable legal requirements.
Protecting Your Multi-State Lifestyle
Snowbird estate planning requires attention to multi-state property ownership, domicile determination, and coordination across different legal jurisdictions. Professional guidance addresses these complications while creating seamless plans that work properly regardless of where you live throughout the year. We help snowbirds create comprehensive estate plans that address multi-state property ownership, establish clear legal domicile, avoid ancillary probate, and comply with different states’ legal requirements for valid, effective planning. Contact us to discuss your multi-state circumstances and learn how specialized planning can protect your property in all locations while providing comprehensive family security despite the added complications of maintaining homes in multiple states.