50+ Lifestyles

Is There a Retirement Home in your Future?

By Curt Ford
Nash Nash Bean & Ford

While the sun is still shining and weather is warm, we know that it won’t be long before we will be buttoning up the winter coats and bundling on the scarves and mittens. And for many people, when the Midwest winters start to approach, their first wishful thoughts are of a retirement home in a warmer location.

If you are thinking about purchasing a retirement home – whether someplace warm and sunny or not – there are several factors to consider, including how it might fit into your financial and estate plan.

People choose their retirement location based on a wide variety of factors and considerations. If you are at the point in your life where you are considering a retirement location, be sure that you consider the financial implications of your choice of location along with other considerations.

Naturally, you will likely take into consideration things such as proximity to grandchildren or climate when you make a decision about where to retire. However, if you want to maximize your disposable income during your golden years, then you may also wish to consider the financial implications of your choice of location as well. In the U.S., most states impose a state income tax on residents, in addition to any federal income taxes the resident owes. As of 2013, the only states in which residents pay no state income tax at all are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee pay state income taxes on dividends and interest income only.

Whether or not a state imposes a state income tax is unlikely to be the deciding factor when choosing a retirement location, but it is certainly something worth factoring in if you are torn between two or three locations. In addition, if you are not planning on moving to another state full-time, be sure to consult with your financial advisor about which state is the most advantageous to consider your official state of residence.

Nash Nash Bean & Ford are members of the American Academy of Estate Planning Attorneys and the National Academy of Elder Law Attorneys. To receive a copy of our most recent newsletter “Your Estate Matters” or for a free consultation on Estate or Long Term Care Planning, call 800-644-5345, email info@nashbeanford.com or visit our website at www.nashbeanford.com, where you may also link to our blog and Facebook page.

The firm devotes its practice primarily in the areas of estate, business and tax planning and related areas of the law, as well as elder law and trust administration and probate. We offer guidance and advice to our clients in every area of estate planning.