Clients are often interested in establishing Wyoming residency because of the tax and asset protection benefits. It also makes establishing a Wyoming nexus, and benefiting from Wyoming business laws, much easier. Learn more about incorporating in Wyoming here.
Wyoming residency means no personal income taxes at the state level. It also means no inheritance, gift, excise, or intangible taxes. This also means no state tax return to file. Further reducing the time and expense you pay staying in compliance with the revenue authorities.
Beyond taxes, there are significant estate planning benefits. These include the ability to anonymously form dynasty and perpetual trusts. You may also form a Private Trust Company to avoid the cost of a Public Trust Company. This administrative flexibility is a major draw for trust business worldwide.
Wyoming is popular with retirees and those who live location independent lifestyles. Many of our clients are leaving high tax states, such as California, and are opting to spend a portion of their time in Wyoming. Establishing residency does not require you spend the full year here. In fact, spending less than six months in any State provides significant flexibility when establishing your tax domicile. This means Wyoming does not have to be the State you spend the most time in.
There is no set guide to when you have abandoned your previous domicile for a new one. There are, though, general guidelines you may follow. If your move becomes a point of contention, these are generally what a court looks at to see whether you have in fact left your previous state:
What follows is not a complete list. These are just some of the steps you can take to show you have truly moved to Wyoming. There are no set criteria.
1) You will want to downsize your residence in your last state. If this option is not available, convert the residence into a rental home and visit it significantly less often.
2) Begin receiving important mail at your new WY address.
3) Begin spending time in Wyoming. If you spend more than six months in another State, then you will be seen as having residency in that State.
4) Enroll to vote in Wyoming.
5) Use professional services such as accountants, dentists and doctors in Wyoming.
6) Update your estate planning documents, move your trusts and move your LLCs and Corporations.
7) Use your Wyoming address on your financial accounts and open an account with a Wyoming bank.
8) Join community organizations such as places of worship, clubs and subscribe to local newspapers and magazines.
9) Move your most cherished possessions, such as family photos and heirlooms.
These are some of the factors which determine residency. As we said, there is not a set criteria with necessary and sufficient conditions that clearly define when you live once place and not another. The totality of your lifestyle and choices will be what are used to make this determination. This is why we advise our clients to make every effort to legitimize their move to Wyoming. Going through these extra little steps brings numerous tax and estate planning benefits. Please contact us for more information.