Thinking About Becoming a Snowbird? Do Your Research First
A new study from Maryland shows that the majority of people who achieve age 61 are free to choose where they want to live. This is not that surprising for many retirees, who want to consider moving at least on a part time basis to a more ideal locale. In fact, up to one third of retirees indicate that they have already done so and another third anticipates doing so recently.
More than 80% of the people who expressed interest in moving to a new location, intend to go to the South Atlantic states. However, before you intend to start splitting your time between two or more states, you need to consider which of these you will choose as your primary place of residence. This can have significant tax consequences, since certain states will have tax rates for real estate issues and retirement income and some states have no income tax at all.
However, once you make this decision, you also need to be prepared to gather the documentation that shows that you really do live in the state that you have selected. Some states are notorious for going after individuals who claim they have relocated to another place. Make sure you keep all of your documentation to show which of these is your primary domicile.
Discussing this with your financial planner and other retirement planning experts is important for anyone who is nearing retirement age. Making the decision about where to live is a freedom afforded to many people who no longer have the work or family obligations that had younger in life. An estate planning lawyer in NJ can provide further insight about how your decision may affect your future, too.