Well, first point, if you want to change your residence or domicile from Washington state to some other state? That is a question you answer with the help of your attorney. Not your accountant. And not a blogger.
But are you curious about establishing residency or changing your address to a new state? Maybe you want to avoid Washington State’s capital gains tax? Or maybe you want your heirs to avoid Washington State’s new higher estate taxes? (Click here to learn more about the new higher tax.) Washington provides a useful form for thinking about these issues: Form 85-0045, Affidavit Supporting the Decedent’s Domicile Status at the Time of Death.
Washington’s general residency rule is about to begin
However, let’s start with the general residency rule, which comes from the Washington Revised Code (RCW 83.100.020), the Washington Administrative Code (WAC 458-57-105), and ironically from the Department of Revenue’s FAQ (click here).
Residents potentially owe estate and capital gains tax returns. And the residents are people. domiciled in Washington state.
What then is a person’s domicile? Quoting ChatGPT, “‘Domicile’ means the true, fixed and permanent home and place of habitation of a person. It is the place to which the person intends to return when absent. A person can only have one domicile at a time.”
The state applies a facts and circumstances test and basically It goes over all the common sense things you would consider if your job was determining people’s addresses. But you and I have a concrete idea of what matters from that Form 85-0045.
The actual form appears here: Affidavit certifying the domicile status of the deceased at the time of death. And as background, a personal representative or executor could complete and provide this form to the state Department of Revenue if they need help determining domicile.
But the other useful thing? The form helps you think concretely about the mechanisms of a possible change of address.
Review of Form 85-0045
A first tip to get you started: Go ahead and grab the form and fill it out the way you would like to be able to fill it out if you were arguing that you are not a resident of Washington. because you do it No they want to be subject to the state capital gains tax, let’s say. Or why you do it No You want your estate or the estate of a family member to be subject to the state estate tax. Answering the questions on the form will help you understand the problems. (The form is similar to a test in which the questions indicate the correct answers.)
But let me make the key points if you’re thinking about your own residency in Washington state.
Primary residence at time of death
The first question on the affidavit asks for the decedent’s current primary residence, mailing address, length of time lived at this location, and then whether there was any known intention to continue or change this residence. So that’s the big thing. And the meaning: If you are going to argue that your residence or domicile is not in Washington State, you want or need to be able to point to a residence in some other different state. Makes sense, right?
A couple more questions at the top of the form explore this topic in more detail. The second question, for example, asks whether the decedent was residing in a nursing home on the date of his death and how long he had been in the nursing home. The third question asks whether the decedent owned a home and whether that home was or is rented or leased or available for rent or lease. (Obviously, you can’t argue that you plan to return to your Las Vegas home if you’re renting or leasing it to someone else.)
Washington State Real and Personal Property
Next point: Several of the questions in the affidavit (specifically, questions 3, 4, 6, 8, and 13) ask whether the decedent owned property in the state of Washington. Real estate (such as a house), personal property including cars, business interests, etc. The affidavit also asks about safe deposit boxes in Washington state. Of course, these can store the most valuable personal property a person owns, such as jewelry and gold. (The form does not ask if you have rented storage units or lockers in Washington state. But they should probably be considered the same way as safe deposit boxes.)
Obviously, if you want to firmly claim another state for your residence or domicile, property located in Washington State is important. A lot.
Also this comment and reminder: If you have any real property located or personal property stored in Washington State, your estate must file a Washington State estate tax return if the estate crosses the filing threshold.
Example: A Nevada-domiciled decedent dies during the last half of 2025 when the filing threshold is $3,000,000. The total estate includes only two items: a $3,000,000 IRA and then also a small undeveloped parcel located in Kitsap County worth $100,000. The Nevadan’s estate must file a Washington state estate tax return because the gross value of the estate exceeds $3,000,000. Keep in mind that the estate will pay only a small amount of taxes. (About $300 in this situation).
Washington State Activity in the Previous Five Years
The affidavit also asks questions about any business or personal activity in the state within the last five years. The fifth question, for example, asks whether the decedent was employed in the state of Washington at any time in the previous five years. The sixth question asks whether the decedent owned or operated a business in Washington state during the previous five years. The twelfth question asks about memberships in communities, religious organizations, or clubs in Washington State in the last five years. The fourteenth question asks for a complete list of travel (including place visited, dates of travel, and reasons for travel) during the previous five years.
You can see what the Department of Revenue is trying to collect here: How connected are you to the state of Washington? Close and narrow connections weaken the argument that you are domiciled in some other state. What about the look-back period? The previous five years.
Official government documentation related to the location
A final observation on the affidavit, which also serves as a good reminder. The affidavit raises a series of questions that can be easily verified by consulting a government document. For example, the seventh question asks which IRS service center the decedent used to file tax returns. And for the address that appears on the federal tax return.
The ninth question asks where the deceased was or is registered to vote.
The tenth question asks if the decedent had a driver’s license and, if so, from what state.
The eleventh question asks if the deceased had any licenses or permits at the time of death. These can be recreational permits (fishing or hunting licenses) or professional licenses (such as a CPA license or membership in the state bar).
Finally, the fifteenth question asks whether the decedent declared a state of residence around the time of his death. If so, ask to whom the statement was made and when.
The obvious observations here: all federal and state government documents you submit must match your residency history. The tax returns you file, for example, must logically match the residence or domicile you claim. And if you are domiciled in, say, Texas, most or even all of your licenses and permits must match that state.
Final comments
I find Form 85-0045 revealing if you are starting to think about residency and domicile and perhaps moving to some new state. You’ll get a good idea of what changes you’ll need to make if you decide to move.
And just to sum this all up, you’d ideally want to avoid owning property in Washington state, at least if you’re concerned about filing an estate tax return. That property, even if minuscule, triggers the requirement to file an estate tax return if it exceeds the reporting threshold. Obviously, reporting puts you on the Treasury Department’s radar screen, whether you deserve it or not.
You need a home somewhere else. And with that, a mailing address along with things like a driver’s license, voter registration, and then state and local licenses and permits as applicable for a resident. Ideally, your profile would resemble that of a local Floridian, Texan, or Nevadan if you choose to reside in Florida, Texas, or Nevada.
Make strong connections with your new location. And then intentionally limit or weaken connections to your former state of residence.
Finally, think about how much time you spend in Washington state. Less is better. You may even want to document the short time and inconsequential nature of the activities in the state.
#Change #residence #Washington #state
