Can I Keep My Old Domicile After Buying in Escondido

Emily just called, frantic. She’d spent $850,000 on a beautiful retirement home here in Escondido, but her existing will, drafted in Nevada, hadn’t been updated to reflect her California property. Worse, a carelessly worded codicil attempting a DIY fix was deemed invalid by her Nevada attorney due to improper witnessing. Now, Emily faces probate costs potentially exceeding $50,000, all because of a faulty codicil and a failure to properly address domicile. It’s a painful lesson, and one I see repeated far too often in my 35+ years practicing as both an Estate Planning Attorney and a CPA.

Why Does Domicile Matter When I Own Property in Multiple States?

Domicile isn’t simply where you own property; it’s your true, fixed home – the place you intend to return to, even after temporary absences. California, like many states, has specific rules regarding how domicile impacts estate planning, taxes, and probate. Many clients assume that simply purchasing a home in Escondido automatically establishes California domicile, but that’s rarely the complete story. It’s a multifaceted legal determination. We need to look at far more than just a mailing address.

How Does California Determine Domicile?

The Franchise Tax Board (FTB) doesn’t rely on a simple day count. Spending less than 183 days in California does not automatically terminate residency; the FTB uses the ‘Closest Connection’ test (evaluating 19 factors like your primary doctor and social ties) to determine domicile. They’ll scrutinize your life, including the location of your dentist, the registration of your pets, and where you keep your safe deposit boxes using FTB Form 4600 (Residency Questionnaire).

What Happens If I Maintain Domicile in Another State?

If you legally maintain domicile in Nevada, despite owning property in California, Nevada law governs the distribution of your personal property (cash, stocks, bonds). However, California law controls the transfer of your real property located within its borders. This creates a “split estate,” requiring probate proceedings in both states, dramatically increasing costs and complexity. Avoiding this dual probate requires a deliberate shift in domicile, properly documented through a series of legal actions.

How Can a CPA Help With Domicile and Estate Planning?

This is where my dual credentials as both an attorney and a CPA offer a significant advantage. For example, when considering the transfer of your California home to heirs, establishing California domicile allows for a step-up in basis. This means the property’s value is reset to its fair market value at the time of your death, minimizing potential capital gains taxes for your beneficiaries. Proper valuation, combined with understanding domicile rules, can save your family substantial sums. As an attorney, I ensure your estate plan reflects your wishes; as a CPA, I maximize the tax benefits.

What About the New Probate Rules in California?

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). However, it’s crucial to distinguish this from the Small Estate Affidavit (strictly for real property <$69,625, used for timeshares/vacant land). Remember, this is a Petition requiring a Judge's Order, not an Affidavit. Moreover, to qualify, the decedent's other non-real estate assets (cash, stocks, etc.) must typically remain below the separate $208,850 Small Estate limit.

What About Concerns About the Federal Estate Tax?

The 2026 ‘Sunset’ was averted by the One Big Beautiful Bill Act (OBBBA), which permanently increased the Federal Estate Tax Exemption to $15 million per person effective Jan 1, 2026. This provides considerable peace of mind for many of my clients, but careful planning is still essential, especially when dealing with multiple state residences and potential tax implications.

What makes a California will legally enforceable when it matters most?

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.

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.