Sand Hill's Chief Investment Officer, Brenda Vingiello, CFA, joins Jenny Harrington on “Halftime Report” to go over their most recent portfolio moves. Brenda's commentary begins
Dual Residency
Published Date : November 2, 2021
November 2, 2021
Dual residency is for many an excellent way to get the most enjoyment out of your assets. Having two homes in different parts of the country allows for maximum freedom in your lifestyle, and perks abound, depending on your interests.
Select the location of your second home to take full advantage of cultural opportunities unavailable in your current area. Sunny San Diego can be amazing, but the ability to whisk away for months to snowy Colorado can satisfy your jet-setting, ski-loving heart. Similarly, a ranch in Utah is gorgeous and secluded, while a second home in upstate New York imparts easy access to all the wonders of the Big Apple, including fantastic food and quality museums. Aim for both properties to fulfill different aspects of your passions, and your home away from home will ensure a fulfilling life.
Before you decide which estate to purchase, you must take a moment to consider not only the amenities and cost of the second property but also the investment potential and exit strategies available. Discussing this with your financial advisor can help you flag issues you might not have taken into account.
Another thing to contemplate, especially if choosing a location along the West Coast, is risk management. Homeowners insurance is vital to mitigate hazards to your property, and with certain states experiencing unprecedented refusals to insure or renew, you’ll need to be sure you have backup options. If one of the homes you have chosen has this issue, consider looking into a syndicate such as Lloyds of London or a non-regulated company handled by a broker.
Now that we have the warnings out of the way and you’ve decided on your dual residency estates, it’s time to establish which residence will be primary and which will be secondary. To determine which house to designate your primary, consider looking into the one that offers the lowest state taxes. Some states don’t have an income tax, though these taxes are replaced by other sources, such as higher taxes on properties, gasoline, alcohol, and tobacco. Carefully research and weigh the benefits and drawbacks to the taxes within each location before you decide. Keep in mind, you must reside in the primary residence for at least 183 days of the year to claim that state as your primary residence.
Let’s explore the primary residence tax requirements further so that you understand what documentation will be required and how to make this as stress-free as possible. When filing your taxes, you’ll need specific documentation of your primary residence. This includes irrefutable evidence that your service providers, such as your doctor, hair salon, and veterinarian, are all within that state, as well as your driver’s license, car and voter registration.
This documentation is vital, and at Sand Hill, we provide a secure client center portal for this type of corroboration so it doesn’t get misplaced, as well as guidance on all of the above issues. Please reach out if you’re considering dual residency and allow us to help you navigate this exciting time.
Source: Internal Revenue Service
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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