Checklist – Severing Michigan Residence

If a client plans to leave Michigan, in order to disconnect any lingering tax exposure to the Michigan Department of Treasury, the following steps should be taken:

1. Overcome any presumptions of continued Michigan residency:

• • Cancel any Michigan Homestead Personal Residence Exemption (PRE)
  • Maintain a log or spreadsheet identify location out of the state, i.e. to show that you are in another state longer than Michigan

2. Sell Michigan Home
3. Cancel ADT or any alarm system in Michigan
4. File final Michigan resident income tax return. Note- do not list Michigan residence on any state or federal filings going forward.
5. Write the local election office and report the change in residency. Formally cancel your local Michigan voter registration.
6. Surrender your Michigan driver’s license.
7. Do not register any cars, boats, or other vehicles with the Michigan Secretary of State.
8. Cancel any Michigan licenses used for employment.
9. Cancel Michigan landline, cable, and other Michigan utilities.
10. Close Michigan financial and safe deposit boxes.
11. Replace Michigan professional service providers and advisors, e.g. attorney, accountant, physician, dentist.
12. Surrender Michigan cell phone number.
13. Mail to friends and service providers ‘we’ve moved’ cards.
14. Retains a copy of all ‘transfer mail’ requests filed with the post-office.
15. Move to the new state of domicile family heirlooms and documents, e.g. wedding alums, family bible, and family artwork.
16. Spend as little money as possible in Michigan (use cash, but not credit or debit cards).
17. Avoid any law enforcement encounters with Michigan police, e.g. speeding tickets.

If a change of domicile is later questioned by the Michigan of Treasury, expect to be asked to furnish the following documents that demonstrate a change of domicile to a new state:

1. Voter’s registration.
2. Driver’s license.
3. Proof of Homestead Exemption.
4. Affidavit of domicile.
5. Mail showing use of new address.
6. Local bank account statements.
7. Local safe-deposit box agreement with a local financial institution.
8. New estate planning documents which contain the new state residence.
9. Membership cards and statements for clubs in the new state.
10. Credit card statements that show significant purchases in the new state.
11. Medical records.
12. Veterinarian records.
13. Social networking profiles that show the new state address.
14. Tax returns filed in the new state.
15. Online retailer account records that show items delivered to the new state address.
16. Prepaid funeral contracts in the new state.
17. Cemetery lot in the new state
18. Copy of the ‘we’ve moved’ card or notification that was sent to family and friends, and a list of all of the recipients of that card.