RECONCILE YOUR DOMICILE – WHEN TO BE OR NOT TO BE? LEGAL ISSUES, JUDICIAL ANALYSIS AND IMPLICATIONS FOR TAXPAYERS RELOCATING TO AVOID STATE ESTTATE TAX

Jeffery R. D’Amico
Kenneth A. Winkelman
Peter D. Lucido
SUNY College at Old Westbury
ABSTRACT
This study examines the pitfalls and planning opportunities for taxpayers attempting to
change domicile from a state that imposes estate and inheritance tax to a state that does not have
such taxes, using New York State as the subject state in this study. Various court cases and state
tax authority will be examined in order to synthesize the issues and formulate some general
guidelines to assist taxpayers and their advisors in successfully using a change of domicile as a
tool in state estate tax planning. A leading New Jersey case will be examined as an example of the
consequences of unsuccessful state domicile planning that caused the taxpayer to be subject to
state inheritance tax in multiple states.