A new report from Bankrate has reviewed the best state for retirees to head off to in their golden years, and Florida did not make the list! According to financial analysts, retirees need to consider far more than just sunny weather when factoring in long-term planning after their working years. The best retirement state, according to the report, is South Dakota, but other solid locations include Wyoming and Nevada.
Why are such out-of-the-box choices deemed so worthy? No state income tax is a primary reason that retirees should consider these locations (although this makes Florida an option, too!). When you’re moving to a new state, you’ll also want to know how that state taxes income and have your CPA look over whether itemized deductions you took in your previous state are disallowed in your new location.
Whenever you relocate, make sure your estate planning documents are in line with your new location and the state rules there. Don’t make the mistake of assuming that documents necessarily transfer between states.
Finally, if you don’t want to make a move but are still concerned about state income taxes in your present home, you can take advantage of the tax benefits offered by a DING or NING trust. These trusts, based out of Delaware and Nevada, accordingly, may allow you minimize your taxes without actually relocating to the more tax-friendly state.
Whether you’re new to New Jersey or New York or simply looking to get the most out of your tax planning, you need advice you can trust. Set up a consultation with our tax planning attorneys at info@lawesq.net.