January 16, 2025
Allworth financial advisor Dan Rausch, CFP®, explores strategies for maximizing the financial and lifestyle benefits of owning and living in multiple homes, including tax optimization, property management, and estate planning tips.
For high-net-worth families, owning homes in multiple locations is a hallmark of a lifestyle defined by freedom, opportunity, and luxury. But with that lifestyle comes unique financial and logistical challenges—and opportunities. Whether you’re splitting your time between coasts, spending summers by the lake, or escaping to warmer climates during winter, it’s important to ensure you’re making the most of your multi-locational living setup.
Let’s explore strategies to optimize your lifestyle while minimizing taxes, simplifying logistics, and preserving your wealth.
One of the first things to consider is which property to designate as your primary residence. In the U.S., your primary residence determines your state of domicile for tax purposes—and this decision can have significant implications.
High-tax states like California, New York, or New Jersey can create hefty tax burdens, while states like Florida, Texas, or Nevada, which don’t impose state income tax, could save you substantial amounts over time.
However, establishing residency in a tax-friendly state isn’t as simple as claiming a second home as your domicile. States often scrutinize where you spend your time, where your financial accounts are based, and even where your doctor or lawyer resides. To avoid complications:
If you’re living part-time in a state that offers a homestead exemption, you may be able to reduce your property taxes. These exemptions, available in many states, lower the taxable value of your primary residence, resulting in significant savings.
For example, Florida’s homestead exemption provides property tax relief and caps annual property value increases for tax purposes. However, you can only claim the exemption on one property, so it’s worth calculating where it will make the biggest impact.
For families who frequently travel between homes, credit card rewards programs can help offset some of the costs. High-end travel rewards cards like the Chase Sapphire Reserve or Amex Platinum offer perks like airline credits, lounge access, and rewards points that can be redeemed for flights or other travel expenses.
If you’re flying private or chartering flights, some cards even offer discounts on services like NetJets or Wheels Up. While the savings may seem modest in the context of a larger wealth strategy, it’s always a good idea to optimize where you can.
If you’re not using one of your homes year-round, renting it out could generate passive income and offset some ownership costs. However, you’ll need to understand the tax and logistical implications:
Keep in mind that renting out a property may trigger local regulations or HOA rules, so it’s worth consulting with a property management expert or tax advisor.
Owning multiple homes means double (or triple) the maintenance responsibilities. Hiring local property managers or caretakers to oversee upkeep can save time, minimize stress, and protect your investment. Look for professionals who can:
While this is an added expense, having trusted professionals on the ground ensures peace of mind, especially when you’re away.
Owning homes in multiple states can complicate estate planning. Each property may be subject to probate in its respective state unless you’ve taken steps to avoid it. To streamline the process for your heirs:
Finally, don’t forget why you chose to live in multiple locations: to enjoy the best of what each place has to offer. Invest in experiences that make your time in each home meaningful, whether it’s connecting with the local community, pursuing hobbies, or creating memories with family and friends.
Multi-locational living offers incredible flexibility and opportunities, but it requires thoughtful planning to make the most of it. From tax optimization to property management, the right strategies can help you minimize stress, preserve your wealth, and enjoy the lifestyle you’ve worked so hard to create.
If you’d like to explore how multi-locational living fits into your broader financial plan, let’s connect. Together, we can craft a strategy that works for you—wherever life takes you.
As a certified financial planner with both tax planning and CFO experience, I understand how complex financial situations require an intentional approach. I’m passionate about educating you to make sound decisions because I understand what’s at stake for you. Wealth management is more than choosing the right investments. It also involves deliberately preserving your wealth, so you feel confident in your tax strategy and family estate plan.
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