How to Become a Texan

PRACTICE POINTERS

BY BRAD WIEWEL

Austin is being overrun by “outsiders!” Whether they’re from California, New York, or Illinois, nothing is going to stop them. As Austin lawyers, we are encountering them in our offices and in our neighborhoods. Many are coming to avoid higher taxes, but the California tax authorities, and their counterparts elsewhere, do not just roll over and let all those dollars stroll out of their states so easily—many are very aggressive. It is essential for your clients and new friends to establish Texas as a verified domicile to escape their clutches! Here are a few pointers for recent Texas transplants on how to do that.

First, they should change their mailing address. While this seems mundane because traditional mail is not as important as it once was, this simple task puts the federal government on notice that a move has occurred; they can pick up a Movers Guide and PS Form 3575 at the post office. Second, they should let their creditors or anyone else they deal with on a regular basis know about the move. They should inform any entity (corporation, LLC, etc.) that they deal with too. Once they have a Texas address, it should be used on all correspondence.

Getting a Texas driver’s license and having their vehicle registered here signals an intent to permanently reside, as does having the vehicle inspected and getting Texas license plates (and once they get those, they can enjoy a tremendous amount of relief that they will not be stereotyped by having out-of-state plates on Mopac anymore!). They can also file a relatively obscure “Residency Affidavit” which can be obtained through the Texas Department of Safety website. It is an explicit statement of intent to make Texas their legal residence. Opening a bank or credit union account seems basic, but because so many people do not use or need a local bank now, it is a step that can be powerful, but overlooked. Having paper checks showing a Texas address is perhaps arcane, but smart too.

Many are coming to avoid higher taxes, but the California tax authorities, and their counterparts elsewhere, do not just roll over and let all those dollars stroll out of their states so easily—many are very aggressive. It is essential for your clients and new friends to establish Texas as a verified domicile to escape their clutches!

Many Texans are frightened about the political and cultural leanings of these “foreigners.” Whatever their persuasion, registering to vote is simple and convincing evidence of a new domicile because it carries criminal penalties with it. The application is available online from the county tax office.

Updating an estate plan may seem like an odd addition to this list, but it’s important for two reasons. First, it certainly shows a commitment to the laws of Texas regarding these vital issues. Second, out-of-state documents do not work well here. In Texas, we call our medical directive a “Medical Power of Attorney” and our termination-of-life-support document a “Directive to Physicians.” In other states, those are often combined into one instrument that may be named a “Health Care Proxy” or “Advanced Health Care Directives.” Texas medical providers are used to seeing Texas documents and willingly accept them; non-standard directives may cause confusion and caution at the wrong time. Out-of-state wills normally do not include the required Texas verbiage, which can equate to more time and expense. Many Californians in particular have revocable living trusts which specify that they are governed by the state law where the trust was drafted. Having a trust governed by Texas law strengthens the client’s hand when dealing with the tax collector in the state of their former residence.

Two more tips. Becoming a member of a church or other place of worship is a mark of stability and solidity, as is establishing a relationship with a local doctor, dentist, veterinarian, and even therapist. Finally, joining gyms, clubs, and olunteer organizations help to make a challenge on residency extraordinarily difficult to win.

Our law firm literally wrote the book for all new Texas residents: Welcome to Texas, Now What? The ending sentence of the book’s introduction is, “Don’t forget why you are moving here.” Good advice for them, and a good reminder for those of us who got here first, by birth or otherwise, to be patient, kind and friendly to our newly minted Texans. AL

Brad Wiewel is a board certified Texas estate planning attorney with the Austin firm of Texas Trust Law.