
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, March 4, 1990                   TAG: 9003052384
SECTION: HOMES                    PAGE: D3   EDITION: METRO 
SOURCE:    PAUL J. LOCHRAY ASSOCIATED PRESS
DATELINE:                                 LENGTH: Medium

STATES' PROPERTY-RIGHTS LAWS CAN DIFFER

DENVER - If you own a second home in another state, for vacation or investment purposes, or if you're thinking about buying one, make certain it's included in your estate planning, experts say.

When considering multiple-home ownership in your estate plan, it's important to understand the term "domicile." Essentially, domicile is legalese for primary residence.

While it is possible to have more than one residence, a person legally can have only one domicile at a time.

If it's not certain at the time an individual dies where his or her domicile is, the intent of the will could be subverted, the heirs may not receive the property rights intended by the decedent, and the tax situation could be complicated.

In fact, courts have held an individual's estate to be subject to double taxation under the estate laws of two states because each state considered the dead person to be domiciled there.

Consider an individual who has homes in Arizona, a community property state, and Minnesota, a common-law property state. The manner in which property is distributed at death is vastly different under each type of property system.

So, if the owner dies, and there is confusion as to where his or her domicile is, settlement of the estate can be complicated.

What constitutes a domicile may appear obvious at first. It isn't.

Traditionally, domicile has been defined as a place where a person establishes his or her permanent residence.

But many states have laws that define domicile as a location where a person intends to establish his or her residence for the time being.

In today's mobile society, it is not unusual for a person to have homes in several states, conduct business in a multistate area, or move from one state to another because of a change in health, employment, marital status or retirement. Therefore, the definition of domicile becomes blurred.

Although most individuals live most of the year where they are domiciled, the residence does not necessarily determine domicile.

Other factors that may be considered:

How long has the individual lived at the primary residence?

Where does he or she transact business?

Where does the individual maintain community or professional affiliations?

What is the individual's motive for living in particular state? Evasion of creditors, for example, may negate an individual's claim to domicility.

If you own a vacation home or investment property in a state outside your home state, consult your attorney.

by CNB