For many Wisconsinites, spending the colder months in a warmer climate like Florida or Arizona is the perfect way to enjoy retirement. These “snowbirds” enjoy the best of both worlds—but when it comes to estate planning, living in more than one state can create legal and financial complications if not properly addressed.
If you split your time between Wisconsin and another state, your estate plan needs to work seamlessly across state lines. In this post, we’ll explore key considerations for snowbirds, including residency status, tax implications, and making sure your estate documents are recognized and enforceable in both states.
Residency Matters: Where Are You Legally Considered a Resident?
Your legal state of residence affects everything from probate to taxes. For estate planning purposes, your state of domicile—where you intend to make your permanent home—is crucial. Even if you own property in multiple states, only one can be your domicile.
Why does this matter? Because the laws of your state of domicile generally govern your will, estate taxes, and probate proceedings. For example, if you consider Wisconsin your legal residence, your estate will likely be administered under Wisconsin law, even if you pass away in another state.
Key tip: If you are considering changing your residency to a state like Florida (which has no state income tax), consult with both a Wisconsin estate planning attorney and a tax advisor. Shifting your domicile for tax purposes can impact your estate planning strategy.
Out-of-State Property Can Trigger Multiple Probate Proceedings
Many snowbirds own homes in two states—for example, a primary residence in Wisconsin and a winter home in Florida or Arizona. Without proper planning, your estate could be subject to ancillary probate in the state where your out-of-state property is located.
Ancillary probate is a separate legal process that takes place in the state where the property is located. This can increase costs, delay asset transfers, and create confusion for your heirs.
A better approach: Transferring your out-of-state property into a revocable living trust can help avoid multiple probate proceedings. Trust-based planning ensures your assets pass smoothly across state lines, saving time and legal fees for your loved ones.
Are Your Estate Documents Valid in Both States?
Each state has its own requirements for estate planning documents like wills, powers of attorney, and healthcare directives. While many states will honor documents executed in another state, this isn’t guaranteed—especially when it comes to medical decision-making and property transfers.
As a snowbird, it’s important to review the following documents to ensure they’re legally enforceable in both states where you reside:
- Durable Power of Attorney – Some financial institutions in your non-Wisconsin state may be hesitant to accept an out-of-state power of attorney unless it conforms to their local standards.
- Healthcare Directive or Living Will – Emergency room staff in Florida or Arizona may not recognize a Wisconsin-form directive, which could delay critical care decisions.
- Will or Trust – While wills are generally honored across states, differences in witness requirements or trust laws may create challenges without proper planning.
Solution: Have your estate plan reviewed by a Wisconsin estate planning attorney and, if needed, by a licensed attorney in your second state to confirm everything is properly aligned.
Tax Implications for Snowbirds
Wisconsin does not have a state inheritance tax, but your overall estate plan could still be impacted by state-specific tax laws in your winter state—especially if you own property or earn income there.
For example:
- Florida has no estate or inheritance tax, which makes it an attractive domicile for some retirees.
- Arizona also has no estate tax, but income from property or pensions could still have tax consequences depending on your residency.
To avoid surprises, make sure you understand how each state treats income, property, and death taxes, and structure your estate plan accordingly. Working with a knowledgeable estate planning attorney who understands multi-state planning is key.
Protect Your Legacy, Wherever You Call Home
Being a snowbird offers the freedom to enjoy retirement in more than one place—but that freedom comes with added complexity when it comes to estate planning. From preventing multiple probate proceedings to ensuring your legal documents are valid in both Wisconsin and your winter home, proactive planning is essential.
At Turke & Steil LLP, we help Wisconsin residents create estate plans that travel with them—whether they’re soaking up the sun in Florida or enjoying the seasons back home. If you split your time between states, we can help you structure your estate to minimize complications and ensure your wishes are carried out smoothly.
Call us today at 608.237.1775 to schedule a consultation and ensure your estate plan is ready for life across state lines.