How does one establish residency or domicile in Virginia to avoid Maryland estate and inheritance taxes?

Answer 1

First, it is not impossible for two states to both consider you a resident for tax purposes. You need to both establish residency in Virginia and abandon your domicile in Maryland.

There is no single thing you need to do. States look at the facts and circumstances of individual cases to see if most of the evidence points to your being a resident of the state. Some of the factors that influence a decision are:

* The length of time spent in each state * The location of your telephone listing * The location of your primary bank and investment accounts * The location of your primary physician, dentist, accountant, lawyer, broker etc. * The location and value of your primary residence as compared to the value of any other residences * The location of your residence on important legal documents (wills, tax returns, etc.) * Where you pay property taxes * Where you maintain and register your personal property such as vehicles, boats, etc. * Where you register and maintain professional licenses * Where you do volunteer work, attend church and donate money to charity and political campaigns You need to do as little as possible of the above in Maryland and as much as possible in Virginia. It would help, of course, to sell your house or terminate your lease in Maryland.