Tips for Establishing Nevada Residency

Tips for Establishing Nevada Residency

Posted on July 12, 2023 in estate planning,tax planning

With its gorgeous landscape, affordable living, endless entertainment options, and favorable tax laws, Nevada continues to be an enticing and advantageous state for those looking to establish new residency. Fortunately, establishing residency in Nevada is fairly straightforward and simple. Once you’ve followed the necessary steps to become an official resident, you’ll be ready to begin enjoying the extensive benefits that Nevada has to offer.

What Do You Need to Establish Residency in Nevada?

Nevada law recognizes a person as a resident if they meet any of the following descriptions:

• Their legal residence is in the state of Nevada.
• They engage in business that crosses state lines in which they operate a motor vehicle, trailer, or semi-truck, or they maintain the vehicles used in such a business in which Nevada is the registered home state for those vehicles.
• They physically reside in the state while earning income within the state.
• They declare themselves a resident of the state to procure benefits not afforded to nonresidents.

The simplest way to establish residency in Nevada is to complete the following three steps:

1. Get a Permanent Address in the State Nevada law is loose on what constitutes a permanent address, so while this could be a property you own or rent, you could also use a hotel, RV park, or campground so long as you can provide a receipt showing no fewer than 30 consecutive days of residency. Once the residency is established, you are not required to live there full-time and may travel as desired. It should, however, be a residence in which you intend to stay for an indefinite length of time.
2. Get a Nevada Driver’s License Obtaining a driver’s license in Nevada requires both official proof of residency and proof of identification. When going to the DMV, be ready to present two documents showing proof of a residential address, a government-issued identification card, proof of your social security number, and your driver’s license from your former state.
3. Register Your Vehicle in Nevada Registering your vehicle in the state is the last step for officially establishing residency. Before your vehicle can be registered, you must acquire and provide proof of insurance. As out-of-state insurance is not accepted as proof, your policy must be written for Nevada.

Why Move Your Residency to Nevada?

Nevada has long been a prime location for tourism in the nation, but residents of other states are increasingly discovering the economic and lifestyle benefits the state has to offer its residents. In terms of lifestyle, Nevada offers residents high-quality:

• Recreation: Residents anywhere in the state are never far from excellent locations for hiking and skiing, and the state is home to many wonderful national parks.
• Entertainment: Resorts and casinos in Nevada are known worldwide, and the state’s venues bring in fantastic artists and shows from around the world all year long.
• Natural Setting: Tourists may come for the offerings, but residents stay for the natural setting the state has to offer. With beautiful natural landscaping, a temperate climate, clear skies, and breathtaking sunsets, Nevada presents some of the greatest of what the nation has to offer.

As for the economic benefits, Nevada residents can enjoy:

• Tax Advantages: Nevada residents experience no state income tax, and businesses experience low taxes and very few regulations.
• Protected Assets: For those looking to safeguard their wealth, Nevada protects its residents from creditors, provides a high level of privacy and confidentiality, and has flexible trust laws.
• Estate Planning Benefits: Nevada residents do not incur a tax on inheritance or estates. As a result, those looking to begin planning their estate should recognize Nevada’s unique economic benefits that are afforded to residents. These allow them to maximize the assets that they are able to pass down.

FAQs

Q: How Do I Establish Residency in Nevada Without Living There?

A: Three steps must be taken before residency can be officially established. First, you must change your residential address to a physical location in Nevada, establishing a permanent address in the state. Second, you must obtain a driver’s license in Nevada. Lastly, you must register your vehicle in the state. Once you have followed and established these three steps, you are legally considered a Nevada resident. You are not required to stay residing in the state for any minimum consecutive days.

Q: How Many Months Do You Have to Live in Nevada to Be a Resident?

A: There is no minimum requirement for how long you must live in Nevada to become a resident. Instead, Nevada law focuses on you letting go of any association or attachment to your previous state of residence. Once you have spent just over six months outside of your former state – not necessarily in Nevada during this time – you will have legally detached from your former residency. Provided you’ve followed the steps for establishing new residency, Nevada will become your exclusive residence.

Q: What Counts as Proof of Residency in Nevada?

A: Obtaining a Nevada driver’s license is necessary to establish residency in Nevada. To present proof of permanent residency to the DMV, you will need official documents. This could include, but is not limited to:

• Receipt showing a leased or rented residence
• Public utility bill
• Credit card statement
• Paycheck stub
• Official documentation, such as from an educational institution or county clerk
• Notarized statement declaring physical residency by a property owner

Your document must be dated within 60 days.

Q: Does Nevada Have the 183-Day Rule?

A: Most states follow what is known as the 183-day rule. This timeframe is exactly one day more than half a calendar year. In Nevada, it is not necessary to reside in the state for this time to establish residency in the state. However, to avoid being taxed in more than one state, you must disassociate from your former state of residence. Spending 183 days outside of your previous state will remove you from residency with that state.

Contact Ken R. Ashworth & Associates

Establishing residency in Nevada is a generally simple process, and more people around the country are migrating to the Silver State. If you are ready to begin enjoying all the benefits that the state has to offer, including some of the most favorable tax and estate laws in the nation, start making your move today. Contact Ken R. Ashworth & Associates for all your residency needs.