Summer 2025

When it comes to tax management, changing your home address is more complicated than simply starting mail forwarding. Establishing domicile in a new state is a multifactor process that is particularly important if a client’s income tax liability could linger in the former jurisdiction. If a client is considering a move from Pennsylvania to another state, advisers should be mindful of the actions clients must take to establish a new domicile.

This column explores some of the details when moving from Pennsylvania to Florida, but similar situations could arise when moving to other states.

Domicile vs. Residence

Generally, a person’s domicile is the place where he or she has voluntarily decided to reside with a present intention to make it either a permanent home or home for the indefinite future. A domicile is presumed to continue until another domicile is affirmatively proven, with the burden of proof on the party asserting a change. A mere absence from a fixed home is not sufficient to demonstrate a change in domicile. In essence, until a new domicile is acquired, the old domicile remains. Pennsylvania has considered the concurrence of a client’s physical presence in the place where domicile is alleged to have been acquired (the “physical presence” test) and an intention to make this domicile home, without any intent or purpose to return to the former abode (the “intention” test). Courts will look for concrete actions and stated intentions.

Estate of Andrew J. Milligan, Deceased

In the recent case of the Estate of Andrew J. Milligan, Deceased,¹ the Pennsylvania Superior Court analyzed a decedent’s relationship to Florida and Pennsylvania at the time of his death, reviewing actions and intentions to determine the decedent’s domicile. Orphans’ Court (a division of Common Pleas) found that, eight years prior to his death, the decedent obtained a Florida driver’s license listing his Florida address, and he registered to vote in Florida in the same year. For the next five years, the decedent also filed his federal income tax returns as a resident of Florida and he filed Pennsylvania state income tax returns as a nonresident, listing Florida as his residence. The decedent also executed his will and codicil as a resident of Florida. The decedent’s death certificate was issued by the State of Florida, stating that his place of death was in Naples, Florida. Finally, at the time of his death, the decedent did not own any real estate in Pennsylvania in his own name, though he owned an interest in a limited liability company that owned Pennsylvania real estate.

The Orphans’ Court was asked to determine the appropriate forum for the decedent’s estate. This is an important determination, not only for probate administration but also for inheritance tax liability. The appellant argued that the decedent changed his domicile to Florida for income tax purposes only, and pointed to his lingering ties to Pennsylvania, particularly the physical location of his primary care physicians and an overall lack of intent to change his domicile from Pennsylvania to Florida.

The Superior Court, however, confirmed the Orphans’ Court finding that the decedent took concrete actions to change his domicile to Florida, and demonstrated his intent to remain in Florida indefinitely. The case was likely decided fairly and according to the decedent’s intent prior to his death, but the decedent may have missed some key planning steps that would have bolstered his change in domicile.

Factors and Steps to Consider

Clients who wish to establish and maintain a domicile in Florida from another state should consider a systematic approach. To begin the analysis of whether a client has changed their domicile, determine their intentions and review all the facts and circumstances. The client has the initial burden of proving by clear and convincing evidence that they changed domicile to Florida. If there are substantial facts for and against the change, a client may lose the case if audited by taxing authorities since the client will not have met the burden of proof. A client will want to maintain records to establish the change of domicile, particularly for the first few years that they claim Florida as a new domicile.

Some of the affirmative steps they can take to demonstrate intent may include, but are not limited to, the following.

Sell or lease the Pennsylvania residence – If clients wish to retain a Pennsylvania residence as a vacation home, consider transferring their interest to a limited liability company, perhaps governed under Delaware law, so the clients retain only an interest in the LLC, not the real property. This may also help to avoid ancillary probate in Pennsylvania upon the clients’ death. If the residence is retained, either in their individual names or through an LLC, the clients should avoid spending more than 183 days of a given calendar year in Pennsylvania.

Own or lease and occupy a dwelling in Florida, and move any valuables and personal effects to that home – The client should also change insurance policies for any tangible personal property to show Florida as the primary residence and where the property is located. The client may also consider retaining the moving receipts for such property.

Spend as much time in Florida as practicable – The client should generally spend more than 183 days of a given calendar year in Florida, and spend more time in Florida than in any other jurisdiction. The client should keep records that substantiate the number of days spent in various locations, such as through digital apps like TaxBird, TaxDay, Domicile365, Pebbles, or Flamingo.

Transact business and perform any business-related services in Florida – If the client will continue working, open an office in Florida or establish an office in their Florida home, using business stationery with the Florida office address. They should also discontinue transacting business in the former domicile.

File a Declaration of Domicile and Citizenship form – At the office of the Clerk of the Circuit Court for the Florida county where the client resides, file the above mentioned form to indicate a change of domicile to Florida.

Register to vote in Florida; if possible, vote in person – The client should cancel their voter registration in the other jurisdiction. The client may also consider joining local political organizations.

File federal income tax returns with the appropriate IRS district for a Florida domiciliary and report the Florida address – The client should also discontinue filing resident income tax returns in any prior jurisdictions, or switch to filing nonresident tax returns.

Change estate planning documents to reflect Florida law and the new domicile – The client should recite that they are a domiciliary of Florida and have their estate planning documents reviewed by Florida counsel. The client may also consider buying a burial plot in Florida. They should ensure that estate planning documents comply with Florida law. Similarly, the client should consider moving any established trusts to be governed and administered under Florida law.

Change automobile registrations and obtain a Florida driver’s license – The client should be sure to surrender any driver’s licenses in other jurisdictions. Also change plates and tags to reflect Florida as the new domicile. Also, a best practice may include canceling any monthly parking arrangements or monthly transit cards for the prior domicile.

Transfer bank accounts and securities to Florida – Even if some accounts will be maintained in the prior domicile, the client should change the address on these accounts to reflect the new Florida residence.

Join social clubs or religious organizations located in Florida – If the client is going to maintain some local connections to the prior domicile, consider changing any registrations from resident to nonresident. The client should strongly consider withdrawing any memberships where domicile in the prior state is a prerequisite to holding such membership.

Use Florida residence as the sole “point of contact” – For any contracts, deeds, passports, hotel accommodations or travel bookings, or other legal documents, the client should only use the Florida residence.

Conclusion

This list of factors is not intended to be exhaustive since each client’s specific situation may require additional action. Changing a domicile can also be a multiyear process, particularly as a client may cut some, but not all, ties with the former domicile. Advisers should strongly recommend, for income and estate tax purposes, that the client make as many changes as possible to confirm the intent to change domicile. With intentional planning and careful consideration with advisers, clients can achieve a clean break-up with the Keystone State, whether they plan to move on with the Sunshine State or some other locale. 

¹ Estate of Andrew J. Milligan, Deceased, 2310 EDA 2024 (Pa. Super. March 18, 2025) (nonprecedential).

When it comes to tax management, changing your home address is more complicated than simply starting mail forwarding. Establishing domicile in a new state is a multifactor process that is particularly important if a client’s income tax liability could linger in the former jurisdiction. If a client is considering a move from Pennsylvania to another state, advisers should be mindful of the actions clients must take to establish a new domicile.

This column explores some of the details when moving from Pennsylvania to Florida, but similar situations could arise when moving to other states.

Domicile vs. Residence

Generally, a person’s domicile is the place where he or she has voluntarily decided to reside with a present intention to make it either a permanent home or home for the indefinite future. A domicile is presumed to continue until another domicile is affirmatively proven, with the burden of proof on the party asserting a change. A mere absence from a fixed home is not sufficient to demonstrate a change in domicile. In essence, until a new domicile is acquired, the old domicile remains. Pennsylvania has considered the concurrence of a client’s physical presence in the place where domicile is alleged to have been acquired (the “physical presence” test) and an intention to make this domicile home, without any intent or purpose to return to the former abode (the “intention” test). Courts will look for concrete actions and stated intentions.

Estate of Andrew J. Milligan, Deceased

In the recent case of the Estate of Andrew J. Milligan, Deceased,¹ the Pennsylvania Superior Court analyzed a decedent’s relationship to Florida and Pennsylvania at the time of his death, reviewing actions and intentions to determine the decedent’s domicile. Orphans’ Court (a division of Common Pleas) found that, eight years prior to his death, the decedent obtained a Florida driver’s license listing his Florida address, and he registered to vote in Florida in the same year. For the next five years, the decedent also filed his federal income tax returns as a resident of Florida and he filed Pennsylvania state income tax returns as a nonresident, listing Florida as his residence. The decedent also executed his will and codicil as a resident of Florida. The decedent’s death certificate was issued by the State of Florida, stating that his place of death was in Naples, Florida. Finally, at the time of his death, the decedent did not own any real estate in Pennsylvania in his own name, though he owned an interest in a limited liability company that owned Pennsylvania real estate.

The Orphans’ Court was asked to determine the appropriate forum for the decedent’s estate. This is an important determination, not only for probate administration but also for inheritance tax liability. The appellant argued that the decedent changed his domicile to Florida for income tax purposes only, and pointed to his lingering ties to Pennsylvania, particularly the physical location of his primary care physicians and an overall lack of intent to change his domicile from Pennsylvania to Florida.

The Superior Court, however, confirmed the Orphans’ Court finding that the decedent took concrete actions to change his domicile to Florida, and demonstrated his intent to remain in Florida indefinitely. The case was likely decided fairly and according to the decedent’s intent prior to his death, but the decedent may have missed some key planning steps that would have bolstered his change in domicile.

Factors and Steps to Consider

Clients who wish to establish and maintain a domicile in Florida from another state should consider a systematic approach. To begin the analysis of whether a client has changed their domicile, determine their intentions and review all the facts and circumstances. The client has the initial burden of proving by clear and convincing evidence that they changed domicile to Florida. If there are substantial facts for and against the change, a client may lose the case if audited by taxing authorities since the client will not have met the burden of proof. A client will want to maintain records to establish the change of domicile, particularly for the first few years that they claim Florida as a new domicile.

Some of the affirmative steps they can take to demonstrate intent may include, but are not limited to, the following.

Sell or lease the Pennsylvania residence – If clients wish to retain a Pennsylvania residence as a vacation home, consider transferring their interest to a limited liability company, perhaps governed under Delaware law, so the clients retain only an interest in the LLC, not the real property. This may also help to avoid ancillary probate in Pennsylvania upon the clients’ death. If the residence is retained, either in their individual names or through an LLC, the clients should avoid spending more than 183 days of a given calendar year in Pennsylvania.

Own or lease and occupy a dwelling in Florida, and move any valuables and personal effects to that home – The client should also change insurance policies for any tangible personal property to show Florida as the primary residence and where the property is located. The client may also consider retaining the moving receipts for such property.

Spend as much time in Florida as practicable – The client should generally spend more than 183 days of a given calendar year in Florida, and spend more time in Florida than in any other jurisdiction. The client should keep records that substantiate the number of days spent in various locations, such as through digital apps like TaxBird, TaxDay, Domicile365, Pebbles, or Flamingo.

Transact business and perform any business-related services in Florida – If the client will continue working, open an office in Florida or establish an office in their Florida home, using business stationery with the Florida office address. They should also discontinue transacting business in the former domicile.

File a Declaration of Domicile and Citizenship form – At the office of the Clerk of the Circuit Court for the Florida county where the client resides, file the above mentioned form to indicate a change of domicile to Florida.

Register to vote in Florida; if possible, vote in person – The client should cancel their voter registration in the other jurisdiction. The client may also consider joining local political organizations.

File federal income tax returns with the appropriate IRS district for a Florida domiciliary and report the Florida address – The client should also discontinue filing resident income tax returns in any prior jurisdictions, or switch to filing nonresident tax returns.

Change estate planning documents to reflect Florida law and the new domicile – The client should recite that they are a domiciliary of Florida and have their estate planning documents reviewed by Florida counsel. The client may also consider buying a burial plot in Florida. They should ensure that estate planning documents comply with Florida law. Similarly, the client should consider moving any established trusts to be governed and administered under Florida law.

Change automobile registrations and obtain a Florida driver’s license – The client should be sure to surrender any driver’s licenses in other jurisdictions. Also change plates and tags to reflect Florida as the new domicile. Also, a best practice may include canceling any monthly parking arrangements or monthly transit cards for the prior domicile.

Transfer bank accounts and securities to Florida – Even if some accounts will be maintained in the prior domicile, the client should change the address on these accounts to reflect the new Florida residence.

Join social clubs or religious organizations located in Florida – If the client is going to maintain some local connections to the prior domicile, consider changing any registrations from resident to nonresident. The client should strongly consider withdrawing any memberships where domicile in the prior state is a prerequisite to holding such membership.

Use Florida residence as the sole “point of contact” – For any contracts, deeds, passports, hotel accommodations or travel bookings, or other legal documents, the client should only use the Florida residence.

Conclusion

This list of factors is not intended to be exhaustive since each client’s specific situation may require additional action. Changing a domicile can also be a multiyear process, particularly as a client may cut some, but not all, ties with the former domicile. Advisers should strongly recommend, for income and estate tax purposes, that the client make as many changes as possible to confirm the intent to change domicile. With intentional planning and careful consideration with advisers, clients can achieve a clean break-up with the Keystone State, whether they plan to move on with the Sunshine State or some other locale. 

¹ Estate of Andrew J. Milligan, Deceased, 2310 EDA 2024 (Pa. Super. March 18, 2025) (nonprecedential).