Florida Residency: Do You Have To Live Here Six Months?
Occasionally, a client will state their understanding that they have to live in in Florida for at least six months to be eligible for Florida asset protection laws. I have stated several times on this blog that there is no waiting period for a Florida resident to qualify for homestead protection as well as Florida’s other asset protection laws. So, why do so many people think they have to be here six months. I think people are confusing asset protection and state income tax issues.
Florida has no state income tax and no state inheritance tax whereas many other states, particularly in the northeast, have substantial income tax and inheritance tax. If a person has a residence in Florida and other state the issue is what is his residence for the purpose of state income tax. I am not a tax attorney, but I believe that if a person lives in Florida more than six months during the year he is taxed under Florida’s rules. I think this is the “six month rule” and it has nothing to do with qualifying as a Florida resident for either asset protection or bankruptcy law.
The six month rule is just the starting point (at least in Massachusetts). The Mass. Department of Revenue has a robust questionnaire to determine whether local domicile has changed and will look at credit card mailing addresses, where holidays are spent, location of wedding albums, primary care physicians, etc. in deciding whether to tax those who are claiming Florida residency.