Before comparing states, it makes sense to narrow the list to places you would actually want to live. Instead, identify the locations you are genuinely open to, then build scenario plans around those real options.
Here are seven key topics we encourage high-net-worth families to consider.
1. Lifestyle Alignment Comes First
A lower-tax state that does not align with your lifestyle can mean more travel, a second home, or even another move later, all of which can result in stress and extra costs. Before comparing tax rates, decide what you want retirement to look like:
- Do you want to be close to children, grandchildren, and longtime friends?
- Do you picture outdoor recreation, cultural amenities, golf, travel, or a slower pace?
- Do you want one primary residence, or do you expect to split time between multiple homes?
For many families, retirement is less about slowing down and more about shifting priorities. Location decisions should reflect how you want to spend your time, not just how much you want to save.
2. Residency Rules and Practical Reality
Establishing residency is not always as simple as purchasing property in a new state. The states, especially high-tax ones, that people leave scrutinize residency claims carefully, and the bar is often higher than people expect. Spending more than half the year in a new state can support a residency claim, but day count alone is not enough. The full picture of how your life is structured still matters.
Auditors look at a range of domicile factors, including:
- Where you spend the majority of your days
- Where your doctor is located
- Where your bank accounts and investment accounts are held
- Where you’re registered to vote
- Where your driver’s license was issued
- Where your club memberships are
- Where your closest family ties are
3. Total Cost of Living and Wealth Preservation
Property values, insurance costs, healthcare access, travel needs, and overall cost of living can vary significantly by location. For high-net-worth families, these factors often have a greater long-term impact than tax rates. Moving to a state with no income tax, for example, may be a net loss if housing, insurance, or lifestyle costs are materially higher.
A more complete analysis looks at total cash flow, long-term asset preservation, liquidity needs, and how spending may evolve over time. This is where scenario planning becomes especially valuable.
4. Estate Planning and Generational Considerations
Where you live can influence how your wealth is transferred and protected.
State-level estate taxes, trust laws, and asset protection rules can vary significantly. Oregon, for example, taxes estates starting at $1 million, well below the federal threshold, while neighboring California and Nevada have no estate tax.
Some families may find it worthwhile to evaluate favorable trust jurisdictions, such as Nevada, South Dakota, or Delaware, while maintaining residency elsewhere. Others may need to coordinate multi-state strategies or revisit how assets are structured and transferred.
More importantly, your retirement location should align with your broader goals for family, philanthropy, and legacy.
5. Flexibility and Optionality
Retirement planning is rarely a single, permanent decision—and the location decision shouldn’t be either. Before committing fully to a new state, it’s worth spending some meaningful time there to be sure it’s everything you hope for.
Many high-net-worth families maintain multiple homes, split time between states, or ease into a new location by renting for a season first. That flexibility allows them to test whether a location truly suits them while preserving options as family dynamics, health needs, and priorities evolve.
6. If You Own a Business, the Analysis Gets More Complex
For business owners, the decision about where to retire has an added layer as business income may be taxed differently than personal income. A move that looks beneficial from a personal tax perspective may not look quite as good once business income is factored in.
If a liquidity event is part of the picture, the stakes are even higher. Your state of residency at the time of a sale, recapitalization, or ownership transition can have a meaningful impact on the after-tax outcomes. Planning ahead of a transaction may create opportunities, while moving too late in the process may limit your options.
A major transaction can also change a family’s financial life almost overnight, raising new questions about investment oversight, tax coordination, estate planning, charitable giving, and broader financial decision-making. In some cases, a Family Office, or a Family Office-style approach, may make sense for the next chapter.
7. Not Planning to Move? There Is Still Plenty You Can Do
Not everyone wants to relocate in retirement, and in many cases, staying put is the right decision. Even without a move, there are meaningful steps you can take:
- Review how income will shift once earned income changes
- Evaluate opportunities to manage taxable income
- Revisit estate documents and trust structures
- Plan for housing, insurance, and aging in place
- Build liquidity for early retirement years
- Address concentrated positions or complex assets
- Adjust withdrawal strategies across accounts
- Revisit charitable and gifting strategies
- Evaluate whether a second home or relocation still makes sense
- Retirement is not a single event. It is an evolving phase of life, and your plan should evolve with it.
