Can I Use a Friends Address as My Domicile

I recently spoke with a client, David, who discovered his signed codicil – a change to his will – was invalidated because the notary public witnessed it while David was using his sister’s address in Arizona. He’d been “snowbirding” and thought it would be simpler. The cost? A complete rewrite of his estate plan, additional legal fees, and a lot of unnecessary stress. It’s a surprisingly common mistake, and the stakes are incredibly high.

As an estate planning attorney and CPA with over 35 years of experience here in Escondido, California, I’ve seen firsthand how seemingly simple decisions about residency can create massive complications – and tax liabilities – down the road. While the idea of establishing a domicile different from where you physically reside might seem appealing, it’s fraught with peril. Let’s break down why, and what the California Franchise Tax Board (FTB) looks for.

What Exactly Is Domicile, and Why Does It Matter?

Domicile isn’t just about where you mail your bills. It’s your true, fixed, and permanent home – the place you intend to return to, even if you’re temporarily elsewhere. For estate planning purposes, your domicile dictates which state’s laws govern the distribution of your assets. For tax purposes, it determines where you owe income and estate taxes. Using a friend’s or family member’s address as a matter of convenience can easily trigger an audit and invalidate your planning.

Can You Legally Maintain a Different Domicile Than Your Physical Location?

Technically, yes, but it’s incredibly difficult to sustain, and the FTB is exceptionally diligent. Many people assume that simply spending less than 183 days in California automatically terminates residency; that’s a myth. The FTB uses the “Closest Connection” test (evaluating 19 factors like your primary doctor and social ties) to determine domicile. They are looking for evidence of intent – what does your life demonstrate?

What Factors Does the FTB Consider When Determining Domicile?

The FTB’s Form 4600 (Residency Questionnaire) is a deep dive into your personal life. Auditors will use Form 4600 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 examine:

Location of your primary residence: This is the most important factor.
Place where you vote: Your voter registration is a strong indicator.
Location of your bank accounts: Where are your funds primarily held?
Physical location of your personal property: Where are your belongings located?
Your driver’s license and vehicle registration: These must align with your claimed domicile.
Your professional and social affiliations: Where do you conduct business and maintain relationships?

Using a friend’s address will immediately raise red flags if these factors don’t support it. It creates an appearance of tax avoidance, which the FTB aggressively pursues.

What About Estate Tax Implications?

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. However, domicile still matters for state estate tax purposes, and for determining whether assets are subject to California’s estate tax rules. A mismatched domicile can complicate the process and potentially increase the tax burden.

The CPA Advantage: Step-Up in Basis and Valuation

As a CPA as well as an attorney, I bring a unique perspective to estate planning. Establishing a valid domicile is crucial for maximizing the “step-up in basis” for inherited assets. This means the cost basis of assets is adjusted to their fair market value at the time of death, reducing capital gains taxes when they are eventually sold. Incorrect domicile can jeopardize this valuable benefit, leading to significantly higher taxes. Accurate valuation of assets also hinges on a properly established domicile.

Real Estate Considerations & AB 2016

If your estate involves real estate, it’s crucial to understand the complexities of transferring property. 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, this is a Petition that requires a Judge’s Order, NOT an “Affidavit.” Remember, to qualify, the decedent’s other non-real estate assets (cash, stocks, etc.) must typically remain below the separate $208,850 Small Estate limit. Don’t confuse this with the Small Estate Affidavit, which is strictly for real property < $69,625, used for timeshares/vacant land. Ultimately, attempting to game the system with a friend's address is a risky proposition. It's far better to establish a clear, defensible domicile based on your genuine connections and intentions. A solid estate plan, built on a foundation of accurate domicile information, provides peace of mind and protects your legacy.

How do California courts decide whether a will reflects true intent or creates ambiguity?

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.

To distribute property effectively, you must define what is in the estate, clarify who inherits, and understand how estate liabilities impact the final distribution.

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.