RI is a HORRIBLE tax state for retirees! (real estate, attorney)

[mrluckycharms]

My wife and I have lived in RI all our lives and yes....the beaches are wonderful....but that is not what this thread is about. We are both employed and will retire within 2 years. We have managed to accumulate a few $million over the past 35 years by diligently saving ( much of it in the stock market) and living below our means. However...like many we will be leaving the state soon after retiring, not because we want to but because RI virtually pushes people like us out! Look at this chart below:


State Income Tax Pension Benefits SS Benefits Estate Tax


Rhode Island Top rate of 5.99% Taxed Taxed Over $ 921,655


Florida None Not Taxed Not taxed None



So, if my wife and I stay and die in RI, our children will most likely have to write a check for hundreds of thousands of dollars to the state of RI for estate tax purposes. I don't think so. Look at the Federal Estate TAx exemption for a married couple ..... over $10,000,000!!!! Now some may say "Hey if you have over $921,000 in assets you are rich and your wealth should be taxed before it is passed on to your heirs!"
Really? I don't think so. I would much rather have ALL of our assets pass to our children ....tax free... and FLorida will accommodate us. RI needs to get its act together and fast or else we will be another one of the snowbirds with Florida plates on our car when we come back to visit the "Ocean State."

[Pvdjames]

I would suggest (if you have not already) finding a good tax strategist/financial advisor/and estate attorney. If you/your kids do end up paying a lot of those taxes it's because you do not have the correct financial vehicles in place.

This is true for both federal and state, wherever you choose to live.

[ocngypz]

Originally Posted by mrluckycharms

My wife and I have lived in RI all our lives and yes....the beaches are wonderful....but that is not what this thread is about. We are both employed and will retire within 2 years. We have managed to accumulate a few $million over the past 35 years by diligently saving ( much of it in the stock market) and living below our means. However...like many we will be leaving the state soon after retiring, not because we want to but because RI virtually pushes people like us out! Look at this chart below:


State Income Tax Pension Benefits SS Benefits Estate Tax


Rhode Island Top rate of 5.99% Taxed Taxed Over $ 921,655


Florida None Not Taxed Not taxed None



So, if my wife and I stay and die in RI, our children will most likely have to write a check for hundreds of thousands of dollars to the state of RI for estate tax purposes. I don't think so. Look at the Federal Estate TAx exemption for a married couple ..... over $10,000,000!!!! Now some may say "Hey if you have over $921,000 in assets you are rich and your wealth should be taxed before it is passed on to your heirs!"
Really? I don't think so. I would much rather have ALL of our assets pass to our children ....tax free... and FLorida will accommodate us. RI needs to get its act together and fast or else we will be another one of the snowbirds with Florida plates on our car when we come back to visit the "Ocean State."

If you move to FL, you'd better put your estate into a trust for your children. Florida's PROBATE tax is a killer.

[mrluckycharms]

Originally Posted by ocngypz

If you move to FL, you'd better put your estate into a trust for your children. Florida's PROBATE tax is a killer.

This is easily avoided by properly registering non-real estate assets as either TOD (transfer on death) or ITF (in trust for). We have already done this. Avoiding probate is easy. Avoiding estate taxes is another problem. One method is to gift assets to adult children so that the taxable estate falls below the RI exemption level of $900,000+. However, as a resident of Florida any assets up to the Federal limits of $10 million + (married couple) allows the parents to keep control of the assets until death.

[Hollytree]

Originally Posted by mrluckycharms

Avoiding estate taxes is another problem. One method is to gift assets to adult children so that the taxable estate falls below the RI exemption level of $900,000+.

I think you've just come up with a partial solution. There are also various trusts, etc. I'm sure any smart estate attorney can work with you on this.

[Pattig]

Count us in as long term RI'ers that had to leave when we retired.. Too much money lost to taxes living in RI.

[8to32characters]

I highly doubt you're going to *die* in FL because most people from RI who retire to FL don't--they usually move back to RI within 1-5 yrs. I grew up in RI and lived in FL for 12 yrs., so I've seen it time and time again.

However, if you and your wife *do* move to FL, just make sure that you guys have enough cash set aside for the eventual move back to RI. Believe it or not, that's the best financial advice I can give to an older couple from RI planning to retire in FL.

FWIW, FL is a pretty creepy place, and it's the laughing stock of the entire nation. And if you're truly a multimillionaire, you'd be retiring in San Diego, CA or HI like the rest of 'em!

[DanBev]

I retired to North FL now for 20 plus years and is not creepy,advantageous in that you keep your money.I have $72,000 in exemptions and pay no property taxes.No one in government looking over your shoulder.
Very inexpensive to own a vehicle.We have easy access to interstates.
Yes for me South FL less desirable.

[Pattig]

We are in Charleston SC for over 4 years now and don't have any desire to return to RI. Living on a limited income our money goes a lot farther here. Our property taxes on our 2100 sq ft home here is under $1000 a year. Sure we miss our family there but as retirees, we feel more secure getting more bang for our buck here.. btw..lots of New Englanders here..

[QuilterChick]

Originally Posted by Pattig

We are in Charleston SC for over 4 years now and don't have any desire to return to RI. Living on a limited income our money goes a lot farther here. Our property taxes on our 2100 sq ft home here is under $1000 a year. Sure we miss our family there but as retirees, we feel more secure getting more bang for our buck here.. btw..lots of New Englanders here..

Amen to that Patti. Same here in these beautiful Blue Ridge Mountains. I was behind another Mass. car this morning on the way into town. More RI cars lately as well; MA and RI very noticeable.

Seeing a lot more license plate tags from all the New England states this year. We haven't closed the gates yet.