How Geography Can Wreck Your Estate Plan

Feb 3

Where you live can cost, or save, your estate hundreds of thousands of dollars. In this Tuesday Triage episode, Jill Mastroianni breaks down a listener question about estate taxes, domicile, and owning property in multiple states. Using a real-world scenario involving Washington, D.C., Maine, Georgia, and Kentucky, Jill explains how state estate and inheritance taxes actually work, why domicile is more than just a mailing address, and where people get tripped up when geography and estate planning collide. This episode helps separate fear from facts so you can make informed decisions about where, and how, you live.

What You’ll Learn in This Episode

Why “where you live” is a legal decision, not just a lifestyle choice. Domicile is about intent and objective facts, not where you’d prefer to be.
What domicile really means for estate tax purposes. Courts look at factors like driver’s licenses, voting registration, and where you actually spend your time, not just property ownership.
Why federal estate taxes aren’t the real issue for most people. With a 2026 exemption of $15 million per person, most estates won’t owe federal estate tax.
How state estate taxes can create very different outcomes. The same $10 million estate can trigger dramatically different tax bills depending on whether you live in Washington, D.C., Maine, Georgia, or Kentucky.
Why owning property in another state can still trigger taxes. States like Maine can impose estate tax on non-residents who own real estate there and may place liens until a return is filed.
The difference between estate taxes and inheritance taxes. Estate taxes are paid by the estate. Inheritance taxes are paid by the beneficiary.
Why beneficiary relationships affect tax outcomes. In states like Kentucky, close family members may be exempt, while friends or non-relatives could face significant inheritance tax bills.
How multi-state property ownership can create multiple probates. Without planning, your estate could be probated in every state where you own real estate.
One common strategy to avoid ancillary probate. How revocable trusts can help consolidate administration when property is spread across states.