Can I Be Domiciled in San Diego If I Travel Often

Barry came to my office absolutely frantic. He’d meticulously prepared a new codicil to his trust, changing beneficiaries and asset distributions. But when he tried to have it notarized, the signing agent refused – Barry hadn’t been physically present in California for over six months. He’d been traveling extensively for work, and the agent feared the codicil wouldn’t be legally valid. Barry faced the very real possibility of his estate being distributed according to an outdated plan, costing his family tens of thousands of dollars in legal fees and potentially triggering unintended tax consequences.

As an Estate Planning Attorney and CPA with over 35 years of experience here in Escondido, California, I often encounter clients like Barry who assume that simply spending less than 183 days in the state automatically terminates their residency. That’s a dangerous misconception. Determining domicile—your true, fixed home—is far more complex than counting days on a calendar. It’s especially critical for Californians who travel frequently for business, pleasure, or to maintain residences in multiple states.

What Exactly Is Domicile, And Why Does It Matter?

Domicile isn’t just about where you sleep. It’s a legal concept defining your primary home – the place you intend to return to, even when you’re away. It dictates which state’s laws govern your estate, including probate, trust administration, and, crucially, state income and estate taxes. For Californians, this means potentially avoiding higher taxes levied on out-of-state residents.

How Does California Determine Domicile?

California doesn’t rely solely on the “183-day rule.” The Franchise Tax Board (FTB) uses a comprehensive “Closest Connection” test, evaluating a multitude of factors – currently 19 – to determine your true domicile. These factors go beyond mere physical presence. They delve into the substance of your life: where your primary doctor is located, where your children attend school, the location of your bank accounts, where you own real property, and even where you keep your pets. The FTB takes a holistic view, looking at the totality of your circumstances.

What Happens If The FTB Questions My Residency?

Be prepared for intense scrutiny. Auditors will use Form 4600 (Residency Questionnaire) to scrutinize your life, including the location of your dentist, the registration of your pets, and where you keep your safe deposit boxes. They’ll want to see documentation supporting your claim of California residency, such as California driver’s license or ID, vehicle registration, voter registration, and statements from financial institutions. They’ll also look for evidence of your intent to remain a California resident, such as owning a home and maintaining significant ties to the community.

How Does Being A CPA Help Me Protect My Clients?

As a CPA as well as an attorney, I’m uniquely positioned to help clients navigate these complex issues. The tax implications of domicile are significant. A change in domicile can trigger capital gains taxes on appreciated assets. Conversely, maintaining California domicile can be advantageous for estate planning purposes, particularly concerning the step-up in basis for inherited assets. Proper planning can minimize tax liabilities and maximize the value of your estate for your beneficiaries.

What About Real Estate and AB 2016?

When dealing with real estate transfers after death, it’s vital to understand the nuances of current California law. For deaths on or after April 1, 2025, a primary residence valued up to $750,000 qualifies for a ‘Petition for Succession’ under AB 2016 (Probate Code § 13151). It’s crucial to differentiate this “Petition” which requires a Judge’s Order, from the simpler Small Estate Affidavit (strictly for real property under $69,625, typically timeshares or vacant land). However, remember that to qualify for AB 2016, the decedent’s other non-real estate assets must generally remain below the separate $208,850 Small Estate limit.

What standards do California judges use to determine a will’s true meaning?

In California, a last will and testament is reviewed under probate standards that focus on intent, capacity, and execution. Clear drafting reduces ambiguity, limits misinterpretation, and helps families avoid unnecessary conflict during estate administration.

• Authority: Define executor duties clearly.
• Protection: Establish guardian nominations for minors.
• Location: Confirm residency rules.

For California residents, understanding how intent, authority, and compliance interact is one of the most effective ways to protect family harmony and estate integrity. A will that anticipates probate scrutiny is far more likely to be honored as written and far less likely to become the source of unnecessary conflict.

Controlling Legal Standards for Establishing Domicile and Residency

• Residency Guidelines: FTB Pub 1031 (Guidelines for Determining Resident Status)
  This is the primary resource for the “Closest Connection” test. In 2026, it details how the FTB evaluates 19 factors—including the location of your healthcare providers and social ties—to determine if your presence in the state is “permanent” or merely “transitory.”
• Voter Registration: California Secretary of State – Voter Registration
  Updating your voting address is a critical indicator of intent. For the June 2, 2026, Primary Election, the deadline to register online is May 18, 2026. This serves as a public declaration of your primary home.
• Federal Estate Tax: IRS Estate Tax Overview
  While domicile determines state tax, this resource outlines federal guidelines. It reflects the 2026 OBBBA update, which permanently set the federal estate tax exemption at $15 million per person ($30 million for couples), indexed for inflation.
• Proof of Residency: California DMV – REAL ID Checklist
  Since the federal enforcement deadline passed in 2025, a REAL ID is mandatory for domestic flights. This page lists the specific residency documents (e.g., utility bills, tax returns) that the state accepts as proof of a permanent California address.