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8/27/2017 Domicile - Definition, Examples, Cases, Processes

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8/27/2017 Domicile - Definition, Examples, Cases, Processes

DOMICILE
A domicile is an individuals principal place of residence, the place to which he intends to
return when he goes out. The location of a persons domicile is typically determined by this
intent, as it is the place he has established his home, having no plan to vacate it soon. In a
legal sense, an individuals domicile becomes important in determining in which court he may
file a legal action, and to which state he pays taxes. To explore this concept, consider the
following domicile definition.

Definition of Domicile
1. noun. A persons permanent, fixed, or principal home
2. noun. A persons legal residence

Origin 1470-1480 Middle French domicilium

What is a Domicile
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What is a Domicile
A domicile is a persons true and permanent home, the place where he intends to remain,
and to which he plans on returning if he leaves. For instance, a persons domicile would be
the home to which he returns after a two-week trip to Europe. In the United States, an
individuals domicile determines to which state he pays taxes, which court he may file a legal
action, and to which state he may look for government assistance programs. When an
individual passes away, his estate is governed by the laws of the state in which his domicile
was located.

In the United States, each person is considered to have a domicile, and may maintain more
than one domicile. The law does not consider any person to have abandoned his domicile
until he has established a new one.

For example:

John lives and works in New York but, because he travels a great deal to Los Angeles, he
decides to buy a home in California. John spends about six months in each home, and he
considers this a permanent arrangement. John now has two domiciles.

Alternatively: Johns employer transfers him to their office in Los Angeles, and he is to
start within the week. John packs his home and heads to California, placing his belongings
in storage, and renting a hotel room, until he buys a home. Johns domicile remains in
New York until he establishes a home in California, whether by purchasing a home, or by
leasing a home, at which time his domicile becomes California.

Corporate Domicile
Businesses have legal domiciles, much the way people do. A corporate domicile is the state in
which the corporation is registered, and the state in which it maintains its principal place of
business. Corporate domicile governs the business legal status as a business entity, as well as
business taxes. Laws governing corporations vary by state, and some states offer more
incentives than others do in the attempt to draw businesses to incorporate in their
jurisdiction. Because of this, many businesses incorporate in those states, but primarily
operate the business in another location. In such a case, the corporation has two domiciles.

Types of Domicile
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Types of Domicile
U.S. law recognizes three types of domicile: domicile of birth or origin, domicile of choice or
necessity, and domicile by operation of law. While many people believe the term domicile to
refer to a specific residence address at which someone lives, or business operates, is has
more to do with the country, state, county, and city in which the individual resides. Which
type of domicile applies to any individual depends on the circumstances.

Domicile of Birth or Origin

Domicile of birth refers to the domicile, or place of residence, of anyone as a matter of where
he was born. Domicile of birth is generally assigned as the domicile of the childs family, until
the individual reaches the age of majority and establishes his own domicile. When a child is
born within a marriage, he is assigned the domicile of his father. If the child is born out of
wedlock, he is typically assigned the domicile of the mother.

Domicile of Choice

A domicile of choice refers to any domicile acquired by the individual himself. Domicile of
choice may be the persons domicile of birth, if he chooses to remain once he reaches an age
to choose, or it may be any other domicile chosen by the individual. Domicile is also used to
refer to a change of residency made by choice or necessity. While the law presumes domicile
of choice, the term may only be applied to individuals competent to make such a choice.

By law, any competent adult may acquire a domicile of choice if the following conditions are
met:

1. Consent a the individual must be of legal age, and have freedom of choice
2. Intent the individual must have intent to change his or her current residence to
another state or jurisdiction
3. Permanency the individual must intend to make this new residence his or her
permanent residence.

Domicile by Operation of Law

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Domicile by operation of law refers to domicile imposed by legal statute, with no


consideration given for the persons intent to change residency. When domicile is assigned by
operation of law, the individual has no freedom or right to choose otherwise. Individuals who
may be subject to domicile by operation of law are generally those people under anothers
control, such as a wife or child, and those who have been assigned a domicile by another, as a
matter of law.

For example, individuals who hold public office, or who have been tasked a public duty, may
be required to reside in another state for the execution of their duties. In this case, the
individual may have two domiciles for the duration of the duty, retaining his original domicile
with the intent to return at some point. This is most commonly seen where people serve as
members of the military, or who serve as ambassadors, public agency heads, and for
prisoners incarcerated in another state. Domicile by operation of law also applies to the
President of the United States.

Domicile vs. Residence


The term residence refers to the place where an individual lives. This may be a specific
address, or even refer to a building in which the person lives. The term domicile, on the other
hand, refers to the residence at which an individual lives, with the intent to make it his
permanent home. As the very definition of domicile includes the term residence, it clearly
takes on a larger meaning. A persons domicile has more to do with the persons duties,
obligations, and personal rights, than simply being present at a home.

A residence is the dwelling in which a person lives, and may be considered more temporary
than a domicile, as a person can have his residence in one location, and his domicile in
another. An intent for permanency, which is required in a domicile, is not required to
establish a residence. Even transient or short term stays in a dwelling can constitute a
residence.

For example:

Sally, whose domicile of birth is her parents home in Sacramento, California, chooses to
attend college in Utah. Sally moves most of her things into an off-campus apartment,

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where she stays while school is in session. Sally has no intent to make Utah her
permanent home, but plans on returning home, both during breaks, and after she
finishes college. As such, Sally has changed her residence, but her domicile remains at her
home in California.

Establishing a New Domicile


Factors that determine where an individuals domicile is located include where he lives, where
his car is registered, and where he votes. In generally, these things are done in the state in
which he intends to be his permanent home. Claiming a new domicile is not always as easy as
buying a home in a new state, registering a car there, and registering to vote. This issue
usually only comes up when a state says the individual is domiciled within that state.

To prove the intent to maintain domicile in a specific place, it is generally necessary to


maintain most important activities in that state. A person may show his intent to maintain
domicile in a specific state by using the address of that residence in important documents
and transactions, including:

Tax returns
Social Security records
Passport
Homeowners and vehicle insurance
Credit cards
Bank accounts
Brokerage or investment accounts

When creating estate planning documents, such as a will or trust, or when appointing a power
of attorney, the individual should also make his preferred state of domicile clear, with an
explicit statement. In addition, when establishing a new domicile, the individual should use
his new address when taking the following steps after moving into that state:

Register to vote

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Register a vehicle
Obtain a drivers license or state-issued ID
File taxes
Use local professionals, such as doctors, lawyers, and accountants

Serviceman Establishment of New Domicile


In 1942, Clark F. McIntosh and his wife lived in Wyoming, when he entered the military
service. Within four months Clark was sent overseas. Three years later, Clarks wife was
advised by her doctor to leave Wyoming due to the climate, expressing his belief that the dry
Arizona weather would be beneficial to her health. Clark conversed with his wife through
letters, regarding the move, and he agreed it was the right thing to do. Clarks wife and infant
son, as well as the wifes mother, moved to Arizona, where they bought a house and awaited
Clarks discharge from the service.

Clark McIntosh was discharged toward the end of 1945, at which time he returned to his
family at their Arizona residence. In 1950, Clark filed for a state income tax exemption
available to ex-servicemen domiciled in Arizona prior to September 1, 1945. As Clarks family
had relocated to Arizona in 1942, he felt he was entitled to the tax exemption, but it was
denied by the county tax assessor. McIntosh sued the county, seeking to have the court
validate his domicile in the state at the time his wife and child established residency. The
court, relying on the Arizona Constitution, denied McIntosh claim.

Clark took his case to the state Supreme Court, again seeking a clarification of the term
domicile, and its applicability to servicemen. While Maricopa County claimed that McIntosh
had not personally established his domicile in Arizona until 1945, Clark pointed out that, not
only had is family established residency, but he had demonstrated his intent to change his
domicile through the letters exchanged with his wife.

Referring to both the language in the Arizona State Constitution, as well as referring to case
law on the topic, the Arizona Supreme Court ruled against Clark McIntosh, holding that he
had not yet become domiciled in Arizona until he returned home from the service on
November 1, 1945. The Court ruled that sending his family to Arizona, even with the intent to

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join them there, was not enough to make it his domicile of choice, but that required both his
intent and his presence were necessary to affect the change.

Related Legal Terms and Issues


Intent A resolve to perform an act for a specific purpose; a resolution to use a
particular means to a specific end.
Jurisdiction The legal authority to hear legal cases and make judgments; the
geographical region of authority to enforce justice.
Residency The geographical location in which a person lives or resides; the location
of a business main office or to which a corporation is registered.

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