Residency, Insurance, Titles, and Taxes

[JudyJB]

Most of you old timers probably already know this, but in case there are some newer and more naive people like me, here is what I just found out:

I live in Michigan, and am planning to sell my condo and buy a motorhome and full-time who knows where. My big furniture will be stored in a storage place near my Ohio son, and he will get my mail for me. I am going to leave him a checkbook in case he has to pay anything for me. I will keep my banking account in my current credit union in Michigan and still be partly employed in Michigan and work virtually on the road. Sounds easy, right?

Except I just found out that I can't keep my Michigan vehicle insurance even if I buy my motorhome in Michigan because my address will be in Ohio, so I need to get an Ohio insurance agent when I sell my condo.

ALso, I will need to title my new vehicle in Ohio, and I need to be careful that if I buy it in Michigan, they don't think I bought it there to avoid Ohio sales tax and try to charge me an extra sales tax! Also, I will no longer be eligble to keep my Michigan driver's license, so I will have to get a new one in Ohio. (This will all be tricky because my vehicle plates and drivers license expire in the middle of June, which is about when I am doing all of this.)

A worse problem is that a patient advocate form I sign in Michigan or Ohio is probably not going to be valid in any other states I travel to!! Ditto for my will.

I am seeing my lawyer (Michigan) on Monday afternoon to discuss all of these things and see what I can do to have some documents that will give my son permission to make medical decisions and find out what else I don't know!!!! ALso going in Tuesday AM to see Social Security to make best decision exactly when to apply, etc.

Determined to clean out all the drawers and closet in my second bedroom and finish cleaning out my dresser in my bedroom over the weekend!! I want to get things down to the very minimum so there is not much packing to do when I do sell my condo. Which reminds me that I need to contact my old real estate friend. Whew.

[Bethers]

Take the time to look at other options for your residence. I did like you at first and everything was in Alabama (using a friend's address). It cost me money - as you really want to make your domicile a state at least with no state income taxes. The states most full-timers use are SD, TX, or FL. I changed to SD a couple years ago. Look into it before you make all the changes. It was a pain to do it all twice It saved me considerable money to use one of these states, and SD, for various reasons, was my best option. I only have to go there once every 5 years to renew my drivers license

[Birdie]

Judy one of the really big things to research is that if you are getting insurance it is based on your zip code. That can make some huge difference in your planning. Where I live with my brother and SIL, it is very large multi-generational with many young families. Not much crime, and not a lot of us "older folks" so that makes my medicare supplement and car insurance cheaper than if I were living at my place in Oklahoma. Check it out first before you make the final decision.

By the way, you travel in your motorhome but you don't live in it. That is because lender's don't do that, insurance people don't want to hear it, etc. I co-habitate with my brother and SIL and because they are so glad to have me around they don't charge me any rent. I do travel a lot doing sight-seeing but I always come home to rest up and find something else to see.

[ali1257]

We have kept our state as Washington while we are here in Texas and will continue to do so until at such a time we find it necessary to change. We use our PO Box as our mailing address and if we are asked for a permanent address we give Ron's sister's address.

[JudyJB]

Good points. I think I still have to pay income tax in Michigan because my employer is located there. Something to check into. I won't have that much income I don't think anyway.

Good to know also about traveling versus "living".

If my domicile was someplace other than my son's place, wouldn;t I have to use a mail service??

I do have an aunt and uncle in Florida with an empty condo they rent part of the year, but I hate for them to have to get my mail.

So much to think about.

[JudyJB]

One consideration is that my son wants me to use Cleveland Clinic for any medical issues I have. His doctors are there currently, but they live in a small town near Mansfield which is quite a ways away, but still better to be hospitalized somewhere near him if I have to be. He was treated there for cancer last year and was very happy with his doctors. It has excellent results and is doing extremely well.

My doctors are all at the University of Michigan hospital and I also was treated there for some major problems a few years ago, and like my doctors, but it would really be difficult to be hospitalized there again. If I get seriously sick, I am going to have to consider switching doctors.

Guess I want a Medicare Advantage program where I can be treated just about anywhere, however.

[Birdie]

I have forgotten about what the "Advantage" is over the other items. I have stayed away from anything insurance-wise that ties me to a spot. I travel to see my doctors twice a year. I expected during 2013 that I will investigate finding doctors closer to my home base of San Antonio - might consider Austin as it has a good University setup with doctors. San Antonio (SA) has a smaller version, but I haven't gotten into researching that yet. Next year or as Miz Scarlett sed, tamarra.

I have a friend who just signed up with something insurance-wise (HMO) that she is tied to a group of doctors in her City. So I asked her what happens when a Great White Shark bites you in California? She thinks she is still covered just like she is here...I am not so sure. Probably for emergency treatment, but after that she would have to see her group doctors. But I don't know how that works. Do you?

[Bethers]

Birdie, that can differ with each insurance. But our Sharon can tell you - she couldn't see doctors while she was traveling as they were outside her plan, except in an emergency I think. She's intending to get that changed. I looked into one insurance program and they had doctors only in a portion of one state. Otherwise, I'd only be able to go to an emergency room - and if it wasn't deemed an emergency, nothing would be paid. Of course, that wouldn't work for me. So you have to really look at what you have.

Judy, if you make Ohio your residence and work out of MI, you could end up paying taxes to both states. Check with an accountant. I used a friends for a couple years, as I said, and overtime, I hated him having to call me about mail etc. I'm much happier using a mail service now. And my address with my mail service is my legal address for everything - drivers license, insurance, voting, etc. If you go with a mail service, you want to make sure you go with one that understands rver's - usually were started for rver's. In TX, I'd use the Escapees service. There are a couple I know of in FL and 2 good ones I know of in SD. I'm sure there are others - but those are the ones I remember, and researched the most after dropping others out of the running.

I'm not saying not to use your son's - just suggesting you find out what is best for you before you do that. As for insurance, you want to make sure it'll cover you anywhere. Your son may want you to go to the doctors he likes, but if you're traveling you might not be in that area if/when you need a doctor.

[HorizonSeeker]

Girls you have given me some things to think about. Now insurance wise I think I'm OK. I worked an extra year at teaching in order to take an early retirement WITH insurance. And I know it works in non emergency instances because I just used it here in GA last week to see a doctor, get meds and an xray with no problems. I do still think of Dr. Bob as my doctor and he knows I travel a lot. His words at my last visit "Let me do a chest xray before you take off for Timbuktu."

But I am still using a Tennessee license and my car and rv are tagged in TN. License doesn't renew for 3 more years but car and rv tags will need renewing this summer. I also still own a home in TN that is rented currently although I hope to sell it this year. Right now my mail is forwarded to my brother's house which is only a few hours from where I am here in southern Georiga and I do visit him to pick up my mail. My insurance is through an agent in TN too.

After reading all this I am revisiting this situation in my mind and SD is looking good to me. Not really concerned about it til I sell the house. My income is from mine and my husband's retirement and goes by direct deposit to my credit union which is tied to a nationwide system that I can access in all 50 states. But having to go back each year to renew tags on the vehicles is a pain. Will work this year but hopefully the house will sell and then it will definitely be an inconvenience. I talked to some folks while I was in KY about the SD residence and their mailing service. I am leaning in that direction.

[BirdbyBird]

Check what the requirements are in the different states. Here in Ohio I renew my vehicle tags each year by mail and they send out those little stickers that I have to remember to actually put on the plate BEFORE my birthday. ...not that anyone would forget to do that step and then travel in their rig somewhere one year.......

[Colliemom]

Judy, is there anybody in Michigan where you can use an address from to keep MI as your home base for now? I have been having the same thoughts about this stuff too and is one of the things that has held me back from selling my place and traveling for awhile. MI does not want you to use a P.O. Box as your residency either, you have to have a permanent location someplace. They sure do make it hard to do things like this. One thing I do like about MI residency is that I have a permanent plate on my TT and never have to renew it again as long as I own it. That's one less thing to bother with.

But you have given me some things to chew on too, like the will, insurance etc. Would you do me a favor and keep in touch with what you find out about some of that stuff. I have a will all set here in MI as well as a Power of Attorney for Health Care etc. If I have to go through all kinds of legal stuff just to change it all, I will keep MI as my permanent address even if I have to use my cousin' address or something. Would love to get out from under the income tax though since our lovely state has now decided to tax pensions and a few other things that weren't taxed before, not that I have a pension coming anyway.

As to SS, you need to apply three months before your birthday.

[JudyJB]

Birdie, I know almost every insurance will cover you outside of your home area during an emergency.

After that it depends on the policy and the choices you made. Some Advantage Plans (especially HMOs) are very narrow and will cover you in a true emergency, but then they require that you go back to your Home area for any additional care. Others are more broad. I will be choosing one that is broader and will allow me to get care wherever I want. You need to read your potential policy very carefully.

One thing thing that a lot of people don't know about is that Medicare does NOT cover you while you are outside of the United States. There is limited coverage in Canada, but NONE in Mexico. They might even demand cash!!! http://www.medicare.gov/publications/pubs/pdf/11037.pdf I discovered this when I took my mother briefly to London. The most important part of travel insurance when you travel is the medical insurance you can purchase that will handle large and small emergencies and accidents. What if you break a hip and cannot return back to the US in a regular airplane, for example?? Or if you need specialized care not available in that country and must travel only by ambulance? Most special travel policies will fly you back in a medivac plane. They will also fly in a relative to stay with you, etc.

I always purchase this coverage because I am more concerned about an accident or serious illness while abroad than losing my luggage or a plane delay!

[JudyJB]

As I was researching residency and vehicle titles, etc. one thing I did notice was notices about committing fraud in residency, so I want to be careful about that.

I will have to pay income taxes on my earnings in Michigan regardless of where I live. I have no pensions so no taxes on those, however. All I will have in income is my part-time wages for teaching online, so it should not be too much. I need to see if Ohio will excuse that since it was earned and already taxed in another state. Some states do that.

I will let you all know what else I find out--still researching.

[Bethers]

None of us suggest commiting fraud. Some people doing the Montana registration of their motorhomes have had to make sure they don't get to that point. It's confusing for people and places to understand "full-timing" but more and more are getting there. When I started out there were only 2 insurance companies that I could find that had legitimate full-timers coverage. And having anything less is not a good thing. Now, many are getting on the band wagon. You just have to make whatever state you elect for your domicile the one that you claim for everything. Whether it's using your son's address or using a mail service. My mail service takes care of all my tags. Speaking of which I had them mailed to me here, have received them and have not yet but them on the vehicles. Need to do that.

[HorizonSeeker]

Yes, the insurance outside of the US thing is a bit sticky. I actually had a policy while I was in Asia but never had to use it. The school where I was teaching required me to be enrolled in their plan and deducted $3.00 a month from my check for my premium. I actually did have a skin reaction one time and had to go to the hospital. I went to the hospital the school had their plan with and because I was in my uniform (yes, teachers wore uniforms as well as the kids) it was a breeze. But I didn't know I would have coverage through work so I had the traveler policy and it covered a contingency like air amublance back to the US. Not cheap but had I needed it I liked knowing it was there. And I was traveling around the area after I left my job so glad I had it. I retired with TN BCBS but the union switched to Cigna last summer and so far it seems to be good coverage.