Say you live in the state of Washington, but you vacation during the winter at your home in California. First, the fact that you own property in more than one state may subject your estate to probate in both states. Furthermore, California has a higher cost of probating an estate than Washington, and it has a high income tax, while Washington has no state income tax. First, be clear about establishing or maintaining your residency. This is not always as simple as it may sound.
Appearances count for a lot.
A Certified Financial Planner professional who works with Washington residents who winter in California recommends that they don't establish interest-bearing accounts or brokerage accounts with California banks or brokerages. Keep those in Washington. They also avoid having their paychecks forwarded to California, and he advises that they not earn any money in California. That helps avoid California income tax issues. You can further establish domicile by registering to vote, maintaining a driver's license and automobile registration in your state, and establishing relationships with financial institutions and financial professionals in the state.