Leaving Minnesota’s Tax Trap: Minnesota to Florida Estate Planning Lessons from Richard Schulze

By: Attorney J. O. Valentino
Reading Time: 15 minutes

Rich Planning vs. Poor Planning

Rich Planning and Poor Planning lead to very different families. I saw it firsthand. With Poor Planning, my family suffered a terrible probate when my grandfather passed away. It destroyed my family. My dad, uncle, and grandma litigated each other to death in probate court. My grandfather’s legacy was shattered. There was no peace. Our family was left in pieces.

After that, my mother married into a family who had great estate planning. I experienced Rich Planning. In my new family, our patriarch relocated from a high-tax, trust-unfriendly state to Florida. He established a dynasty trust, effectively preserving the family’s wealth for multiple generations.

I became a lawyer to promote Rich Planning and fix problems caused by Poor Planning. I help families experiencing the results of Poor Planning by litigating in probate court. I help affluent families implement Rich Planning to protect and grow their legacies.

These contrasting stories taught me one big lesson: where you live and how you plan make all the difference. In this article, I’ll show how a real-life billionaire from a tax-heavy state (Minnesota) saved his family hundreds of millions by moving to Florida. We’ll break down Minnesota’s punishing estate tax, Florida’s tax-friendly climate, and the steps to establish a Florida domicile (a service I provide). The centerpiece is Best Buy founder Richard M. Schulze’s journey—how he left Minnesota’s tax trap for Florida’s safe harbor, and what that means for his $3+ billion fortune and legacy.

Minnesota’s Estate Tax: Why Moving to Florida Protects Your Wealth

Minnesota is widely known as a tax-heavy state, especially when it comes to estate taxes. In fact, Minnesota is one of only 12 states (plus D.C.) that still impose a state estate tax. To make matters worse, Minnesota’s estate tax kicks in at a much lower threshold than most states. The exemption is only $3 million per person. (By contrast, the federal estate tax doesn’t hit until nearly $13.99 million in 2025, and Florida has no estate tax at all!) Minnesota’s $3 million exemption is among the lowest in the nation – the fifth-lowest of any state-level estate tax. That means even moderately wealthy families in Minnesota can get hit with a “death tax” bill.

Above that $3 million mark, Minnesota’s estate tax rates are steeply progressive, ranging roughly from 13% up to 16% of the taxable estate’s value. It maxes out at 16% for estates above about $10.1 million. Sixteen cents of every dollar over $10 million goes to the state’s coffers. Ouch. Unlike the federal estate tax, Minnesota does not allow “portability” of the exemption between spouses. This means a married couple doesn’t automatically get to protect $6 million – if one spouse dies and leaves everything to the other, the surviving spouse still only has one $3 million exemption unless careful trust planning was done. Many families don’t realize this, and it’s a costly surprise.

What do these numbers mean in real life? They mean that without planning, a sizable chunk of your legacy could be siphoned off by St. Paul. For example, an estate worth $15.1 million would face an Minnesota estate tax bill of about $1.675 million. That’s $1.675 million less going to your children or favorite charity. If your estate were $8 million (just $5M over the exemption), the state tax would be roughly $923,000 (or more, depending on the brackets) – nearly a million dollars gone. These are heartbreaking numbers for families. I’ve seen heirs forced to sell family cabins, farmland, or businesses because the estate had to scrape up cash to pay Minnesota’s tax.

In one extreme example, a single wealthy Minnesotan’s estate paid $112 million in state estate tax upon death. That single estate tax payment in 2005 was greater than the state’s entire estate tax collections in the previous year. Imagine – over a hundred million dollars that could have endowed charities or stayed in the family instead went to the government because of Minnesota’s aggressive tax policy. No wonder the estate tax is often dubbed the “death tax.”

And it’s not just estate taxes. Minnesota’s income tax is also among the highest in the country. The state’s top income tax rate is 9.85%, nearly as high as California’s, and it kicks in at relatively moderate income levels. Minnesota even taxes Social Security income partially, and fully taxes most retirement account withdrawals and pensions. For high-net-worth individuals, this can mean millions in state income taxes over a lifetime. If you’re a successful business owner or investor living in Minnesota, nearly 10% of your income each year might go to the state, on top of federal taxes.

Minnesota does spare you from a separate inheritance tax (tax on beneficiaries) – it doesn’t have one. But that’s cold comfort, because the estate tax is applied before assets ever reach your heirs. (Some states like Pennsylvania or New Jersey hit you with both an estate tax and an inheritance tax, which is even worse. At least Minnesota hasn’t gone that far.) Minnesota also currently has no gift tax, which means you can make lifetime gifts without a Minnesota tax – but there’s a “three-year clawback” rule: if you gift large amounts within 3 years of death, Minnesota will pull those gifts back into the estate for tax purposes. In short, you can’t cheat the estate tax by suddenly giving everything away on your deathbed. Minnesota has thought of that and will still attempt to tax those gifts.

All told, Minnesota is simply not a friendly place for preserving generational wealth. An analysis by one law firm put it bluntly: Minnesota has an extremely low exemption and no spousal portability, so any couple with more than $3 million is exposed to Minnesota estate tax without planning. Most states have gotten rid of their estate or inheritance taxes precisely because they were driving affluent residents away. Minnesota, however, has held onto it – at the fifth lowest exemption in the nation.

Minnesota to Florida Estate Planning: Why the Wealthy Move

The consequences of Minnesota’s heavy tax burden are predictable: wealthy people are moving out. When a state effectively threatens to take 10% of your income each year and up to 16% of your wealth when you die, any rational high-net-worth person will at least consider greener pastures. Florida, in particular, shines as an attractive destination. It’s no coincidence that Florida has become a magnet for billionaires and retirees alike, including many from Minnesota and other high-tax states.

Florida’s tax climate is the polar opposite of Minnesota’s. Florida has no state income tax at all. Zero. Your wages, dividends, capital gains – Florida won’t tax a penny of it. (Florida’s state constitution actually prohibits a personal income tax.) This means in Florida, your income, Social Security, 401k withdrawals, pension payments, etc., are all state-tax-free. It’s one of the most tax-friendly states for high earners and retirees in that regard.

Florida also has no estate tax and no inheritance tax whatsoever. As a Florida resident, when you die not one dime of your estate goes to Tallahassee. (Your estate may still owe the federal estate tax if you’re above the federal exemption, but Florida takes nothing on top of that.) In fact, Florida used to have an estate tax decades ago that was tied to a federal credit, but that tax was fully repealed in 2004 and hasn’t been in effect since. Florida law explicitly says no estate or inheritance tax may be levied beyond what the federal government allows as a credit (and currently the feds allow no credit). The result: No Florida “death tax.” If you’ve been reading this and thinking, “Wow, Minnesota could take $1 million or more of my kids’ inheritance,” guess what: moving to Florida could eliminate that state tax bill entirely.

Florida’s overall tax burden consistently ranks among the lowest in the nation. Aside from no income or estate taxes, Florida’s property taxes and sales taxes are middle-of-the-road (not zero, but not outrageous). Crucially for the ultra-wealthy, Florida also has very strong asset protection laws and a generous homestead exemption protecting your primary residence. (This is beyond the scope of this article, but Florida law shields homestead properties from creditors and offers other protections – another reason many affluent individuals plant roots here.) The bottom line is Florida lets you keep more of your money, during life and at death. As one analysis put it, Florida has no state income tax or surcharge on millionaires, no local income taxes, no estate or inheritance tax, and better asset protection – plus a great quality of life and climate.

Is it any wonder people leave states like Minnesota? Even Minnesota’s own government analysts have acknowledged the incentive. The Minnesota House Research Department noted that state death taxes create a strong incentive for high-net-worth individuals to change their domicile to no-tax states. Once the federal law stopped giving a credit for state estate taxes (after 2004), Minnesota’s estate tax became a real out-of-pocket cost, and affluent Minnesotans started voting with their feet. To avoid a multi-million-dollar tax hit, many simply establish residency in a state like Florida. Often these folks already have second homes in Florida (think wintering in Naples or Palm Beach), which makes it even easier to switch residency. One must only look at migration data: Florida has been a top destination for Minnesota’s net worth and income. (A study by the Center of the American Experiment found that Florida was the #1 recipient of net wealth leaving Minnesota from 2004–2014.)

Let me be blunt: If you’re a wealthy Minnesotan, moving to Florida could save your family millions. I’ve personally advised clients on this. They often feel relief when they see the comparison. By relocating, they not only escape Minnesota’s nearly 10% income tax on future earnings, but they also remove the looming 16% death tax on their estate’s overage. That can mean the difference between your heirs comfortably keeping the family business versus having to liquidate part of it to pay taxes. It can mean the difference between endowing a foundation versus funding a state budget.

To illustrate just how powerful this strategy is, let’s examine a real-world case: Richard M. Schulze, the billionaire founder of Best Buy and a lifelong Minnesotan—until he decided to take his fortune to Florida. His story teaches us valuable lessons about proactive estate planning and why Florida domicile is a game-changer.

Case Study: Richard Schulze’s Minnesota to Florida Estate Planning

Richard “Dick” Schulze is a Minnesota success story. He was born and raised in Minnesota and built Best Buy, the electronics retail giant, from a single store (originally called Sound of Music in St. Paul) into a Fortune 500 company. For decades, Schulze lived in the Twin Cities area, where he launched not only his career but also a major philanthropic foundation. In 2004, after stepping down as CEO of Best Buy, he established the Richard M. Schulze Family Foundation in Minnesota to give back to the community. That foundation grew rapidly; nearly twenty years later it became the 4th-largest private foundation in Minnesota, known for “hometown giving” in Minnesota. Schulze poured his heart into Minnesota through business and charity. So it raised eyebrows in the local press when, in his 80s, Schulze officially relocated his residence to Florida.

Yes, you read that right: the founder of Best Buy, one of Minnesota’s richest native sons, now lives in Florida. According to Forbes and other sources, Schulze’s primary residence is in the Naples, Florida area (specifically Bonita Springs). After a lifetime in Minnesota, he made Florida his home base. Why would an 80-something billionaire make such a move? Publicly, Schulze has emphasized his philanthropic mission—he plans to give away a good chunk of his fortune (targeting over $1 billion in lifetime giving) to charities in Minnesota and Florida. He wants his legacy to be more than just Best Buy; it’s about community impact. But it’s also widely noted that Florida’s tax climate aligns perfectly with those goals. Florida has no income or estate tax, meaning Schulze can manage his estate plan more freely and ensure that more of his $3+ billion fortune goes to his family and charitable causes, and less to taxes.

Let’s unpack what that means. In Minnesota, Schulze’s estate would have faced the full brunt of that 16% estate tax. And because he is very wealthy, we’re talking a massive potential tax. Minnesota’s exemption is $3M—nearly negligible to a billionaire—so essentially almost his entire estate would be taxable at close to the top rate. We will estimate the savings in a moment, but suffice it to say it could be on the order of hundreds of millions of dollars. By becoming a Florida domiciliary, Schulze eliminated Minnesota’s ability to tax his estate upon death. When he passes, there will be no Minnesota estate tax due. Florida won’t tax it either. Only the federal government’s estate tax (at 40%) will apply to the non-charitable portion of his estate, and even that can be mitigated by charitable bequests (which he is clearly planning in spades).

Schulze has not come out and blatantly said “I moved because of taxes” (wealthy folks often prefer to downplay that motivation). But the strategy is common knowledge among estate planners. Minnesota media noted that Schulze’s move “aligns with [his] estate planning” in light of Minnesota’s high taxes, and is emblematic of the “common strategy of establishing Florida domicile to minimize Minnesota’s high income and estate taxes.” In other words, he did what many savvy rich Minnesotans do: become a Floridian to protect the legacy. Even Minnesota’s nonpartisan legislative researchers have acknowledged that affluent individuals often change domicile to states like Florida specifically to avoid multimillion-dollar estate tax bills. Schulze’s decision fits that pattern perfectly.

It’s also telling to see how Schulze reoriented his charitable giving after moving. While he remains very generous to Minnesota institutions, he’s now doubling down on gifts in Florida as well. In 2023, his foundation gave a record $25 million donation to a Minnesota hospital (Allina Health in Minneapolis) – but that same year it also gave a $20 million grant to NCH Healthcare System in Naples, Florida (near his new home). In fact, Schulze’s foundation now explicitly accepts grant requests only from organizations in the Twin Cities (his old home) and in Lee and Collier Counties, Florida (his new home area). He’s literally directing his philanthropy to Florida institutions as part of establishing his community ties there. This is a common strategy: when wealthy folks establish Florida domicile, they often start contributing to local charities, joining Florida boards, etc., to strengthen the case that Florida is truly their primary home (and because they care about their new community). Schulze exemplifies this, having made large gifts to Florida Gulf Coast University, local hospitals, and other Florida causes.

Now let’s look at the numbers behind Richard Schulze’s fortune, and just how much Minnesota stood to gain (and how much he saved by leaving).

Asset Breakdown: How Florida Residency Transformed Schulze’s Estate Plan

So what did Richard Schulze have at stake? Let’s break down the major components of his wealth around the time he changed his domicile from Minnesota to Florida:

• Best Buy Stock: Schulze is Best Buy’s founder and was its longtime CEO. Even after retiring, he retained a large ownership stake. In fact, he’s still the largest individual shareholder of Best Buy, owning roughly an 11% stake in the company. To put a dollar figure on that: Best Buy Co., Inc. (BBY) has a market capitalization that has fluctuated between about $15–$20 billion in recent years. An 11% stake would be valued around $1.5 to $2.2 billion (depending on the stock price). For example, in 2023 Forbes estimated Schulze’s net worth at $3.8 billion, much of that derived from his Best Buy shares. So, roughly half or more of his fortune is tied up in Best Buy equity. (This also means a lot of his income may come from dividends or stock sales—income that Florida won’t tax, whereas Minnesota would’ve taken nearly 10%.)
• Private Foundation Assets: The Richard M. Schulze Family Foundation, while a separate charitable entity, is funded by Schulze’s wealth and has significant assets. As of a recent report, the foundation held about $257 million in assets (mostly funded by Schulze’s contributions of Best Buy stock and other wealth). Schulze has said a “substantial piece” of his estate will go into this foundation upon his death. When that happens, those assets will be used for charitable purposes for generations. (It also means whatever portion goes to the foundation would be deductible for estate tax purposes, reducing the taxable estate—one reason charitable planning is key for billionaires.) At the time of his move, though, this foundation represented a quarter-billion that he’d already set aside for philanthropy.
• Real Estate (Minnesota): In Minnesota, Schulze owned some notable properties. He even branched into real estate investment – for instance, he owns the Westin Edina Galleria Hotel in Edina, MN, which was his first venture into hotels. He likely owned a primary residence in Minnesota as well (perhaps in the Twin Cities suburbs), and possibly other MN real estate or lake property, though details are private. Any Minnesota real estate he kept is still subject to Minnesota estate tax if he were still a Minnesota resident or if not structured properly. (There are ways to minimize MN tax on MN-situs property even for non-residents, e.g. through certain LLC structures, but that’s beyond today’s scope.)
• Real Estate (Florida): In Florida, Schulze purchased a home to establish residency. Public records and reports suggest he owns a luxury home in the Naples/Bonita Springs area. Florida Trend magazine noted he has a waterfront home in Naples valued around $14 million. (Naples is known for its beachfront estates and has attracted many billionaires.) Owning a high-value Florida homestead is often part of showing domicile, and Florida’s homestead laws offer significant property tax exemptions and asset protection to residents. Schulze likely also spends the majority of his time in Florida now, enjoying that Sunshine State lifestyle.
• Business and Investments: Beyond Best Buy stock, Schulze likely has a diversified investment portfolio (bonds, funds, other stocks), perhaps interests in other companies or venture investments. He’s known to invest in health and wellness initiatives and possibly other enterprises. For example, he has invested in hospitality (the hotel) and sits on boards. Any such investments, if generating income or gains, benefit from Florida residency (no state tax on those gains).
• Cash and Personal Property: Certainly he has personal assets like any wealthy individual – perhaps art, collectibles, etc. One can assume a man of his net worth has significant liquid assets or trust accounts that his advisors manage.

In total, at the time he became a Floridian, Richard Schulze’s net worth was roughly $3.5–4 billion (as of the early 2020s). Forbes listed him at about $3.8 billion in 2023, and he actually rose to $4.3 billion by 2025 according to Forbes updates. The growth is due in part to Best Buy’s performance and other investments. Importantly, his estate plan indicates much of that will go to charity or be held in trust for family over generations. By relocating to Florida, Schulze set the stage for those transfers to occur with minimal interference from state taxes.

Florida Residency Savings in Minnesota to Florida Estate Planning

Now for the big question: How much money did Richard Schulze save by moving to Florida? Let’s run the numbers on what he avoided in Minnesota taxes:

• Avoided Minnesota Estate Tax: This is the real jackpot. Had Schulze remained a Minnesota resident until his death, his estate would have faced Minnesota’s estate tax of up to 16%. With an estate in the $3–4 billion range, the taxable amount (after the tiny $3M exemption) would be enormous. Let’s assume, hypothetically, an estate of $3.8 billion (to use the Forbes 2023 figure) passing to his heirs/foundation. Under Minnesota’s brackets, essentially all value above $10.1 million would be taxed at 16%. That works out to roughly $600 million in state estate tax! (For a quick estimate: $3.8B – $3M exemption ≈ $3.797B taxable. Minnesota’s tax would be about $1.355M on the first $10.1M, plus 16% on the remaining ~$3.787B. That totals around $607 million to Minnesota. If his estate were $4.3B, the number would be closer to $680+ million.) Even if he gives a lot to charity, unless he gives everything away, the tax could easily be in the hundreds of millions. By becoming a Florida domiciliary, Schulze slashes that figure to $0. Florida will not take a cut of his estate. So we are looking at perhaps over half a billion dollars saved for his family and charitable foundation. Put plainly, that could mean $500+ million more for his children and grandkids, and more for the causes he supports, rather than going to Minnesota’s treasury.
• Avoided Minnesota Income Tax: Schulze also saves on income taxes each year by being a Florida resident. While retired from day-to-day business, he still earns income – dividends from Best Buy stock (Best Buy pays hefty quarterly dividends), interest, capital gains when he sells investments, etc. Minnesota would tax those at up to 9.85%. Florida taxes them at 0%. For a billionaire, investment income can be substantial – possibly tens of millions per year. (For example, a 4% annual yield on $3.8B is $152 million; even if mostly unrealized gains, at some point assets are sold or produce income.) If Schulze had, say, $20 million of taxable income in a year, Minnesota would take about $2 million. Florida takes $0. Over a decade, that’s tens of millions saved in income taxes alone, further boosting the assets available to give away or invest. We can reasonably estimate that by relocating, Schulze likely saves seven figures (maybe high seven figures) every year in income taxes that he no longer pays to Minnesota. That’s money that can be reinvested or donated, instead of trickling to a state government.
• Other Tax/Financial Benefits: There may be other savings that are harder to quantify. Florida has no tax on intangible assets (Minnesota used to have an intangibles tax long ago, Florida did too – both gone now). Florida’s homestead property tax exemption might save him some on property taxes for his Florida home compared to what a similar home might cost in property tax elsewhere. Florida also has no estate tax on any future generations, whereas Minnesota taxes each generation’s transfer. By establishing a dynasty trust in Florida, theoretically the family can avoid state taxes on wealth transfers for multiple generations (Minnesota law wouldn’t reach trusts properly situated). These long-term savings are complex but very real for “dynasty” planning.

In summary, by moving to Florida, Richard Schulze potentially saved on the order of $500–600 million (or more) in estate taxes that would have applied had he stayed in Minnesota. Instead of Minnesota taking a slice, that money can fund his charitable legacy and support his family. Additionally, he’s saving millions annually in income taxes during his lifetime. It’s hard to overstate how significant this is. For a man who is passionate about philanthropy, it’s actually quite logical: why give that money to a state tax collector when you could give it to a children’s hospital or a scholarship fund? Florida residency enables him to maximize his philanthropy. One report noted he’s more than halfway to his goal of giving away $1 billion in his lifetime – and I suspect not paying Minnesota $600M in death tax will help him reach that goal (since that money can be given to his foundation instead).

The lesson for the rest of us (even if we’re not billionaires) is clear. If you live in a state like Minnesota (or New York, New Jersey, Illinois, etc. – many high-tax states), establishing domicile in Florida can be the single most effective estate planning move to protect your wealth. It’s not just for the ultra-rich either; even families with $5 or $10 million estates can benefit immensely, as those examples earlier showed. In Schulze’s case, the numbers are eye-popping, but proportionally the strategy works at smaller scales too.

Of course, moving states is a big decision and must be done correctly to be recognized legally (more on that next). But as an attorney practicing in Florida, I can confirm: I’ve helped multiple clients through this process, and the savings and peace of mind are very real.

How to Establish Florida Domicile in Your Minnesota to Florida Estate Plan

You might be wondering, “Alright, what does it actually take to become a Florida resident for legal purposes?” The good news is, establishing a Florida domicile is quite straightforward if you genuinely move here. Domicile essentially means your true legal residence – the state you intend to be your permanent home. It’s about intent and action. You can only have one domicile at a time, so switching from Minnesota to Florida requires demonstrating that you’ve made Florida your primary and permanent home.

In practical terms, here are the typical steps and requirements to solidify a Florida domicile (this is exactly what I advise clients to do, and we often assist in the process):

• Spend Time in Florida: Plan to live in Florida at least 183 days (more than half the year) each year. This is important not so much for Florida law (Florida doesn’t mandate a minimum, but for asset protection purposes 183 days is a good benchmark) as it is for satisfying other states’ rules. Minnesota, for instance, uses a 183-day test as one factor for tax residency. So you want to clearly be out of Minnesota more than 6 months a year. Many folks become “snowbirds” – spending winters and more in Florida, and only summers up north. The key is to build the case that Florida is where you actually live the majority of the time.
• Buy or Lease a Home in Florida: You need a physical residence here that you call home. Owning a home (especially a homestead) is ideal. You should then apply for Florida’s Homestead Exemption on that property (if you own), which not only saves you some property tax but is a strong indicator of permanent residency. Schulze, for example, bought that home in Naples; many of my clients purchase a condo or house in Florida before changing domicile.
• File a Florida Declaration of Domicile: Florida provides an official affidavit you can file in the county public records called a Declaration of Domicile. It’s a simple form where you swear that you’re a bona fide Florida resident and intend to maintain Florida as your permanent home. I often file this for clients in the county where their new home is. It’s not strictly required by law, but it’s highly recommended as evidence of intent.
• Obtain a Florida Driver’s License/ID: This is a must-do. You are expected to get a Florida driver’s license (or at least an ID card) within 30 days of moving here. So go to the DMV, turn in your old license, and get that Florida DL with your new address. Similarly, register your vehicles in Florida and get Florida plates. This shows you’ve transferred your life here.
• Register to Vote in Florida: Cancel your Minnesota voter registration and register to vote in Florida. Being a Florida voter is a strong sign you consider Florida home. (And bonus: you can vote in Florida’s elections, which might be more exciting than voting in Minnesota, depending on your perspective!)
• Update All Legal and Financial Documents: Change your address to Florida on all bank accounts, credit cards, insurance policies, estate planning documents, etc.. Your wills or trusts should be updated to reference Florida as your domicile. Inform any professional licensing boards or associations of your new residence. Essentially, you want your paper trail to all point to Florida.
• Sever Ties or Downsize in Former State: While not strictly required, it helps to minimize your connections to the old state. For example, if you keep a house in Minnesota, consider selling it or renting it out (or at least not keeping it as a significant, lived-in residence). Close local accounts there if possible. The more you look like a “visitor” when you are in Minnesota, the better. Many of my clients keep a summer cabin up north – that’s fine, but they might homestead their Florida house and not the cabin, etc.
• Community and Miscellaneous: Do the little things that show you’ve transplanted your life: get a new doctor and dentist in Florida, move your favorite possessions here, join local clubs or places of worship, transfer your house of worship membership to Florida, get involved in local charities (as Schulze did), move your pets and get them licensed with a Florida vet, even move safe deposit boxes to Florida banks. All these details can serve as evidence if Minnesota ever tries to claim you back for tax purposes.

The concept of domicile boils down to where is your true home. One court definition I often quote is: “the place where a person has his true, fixed, and permanent home and principal establishment, and to which he intends to return whenever absent.” If you do the steps above, Florida will clearly be that place for you.

And Florida welcomes you with open arms – there’s no lengthy residency waiting period beyond moving here and taking these actions. Practically, you can accomplish most of these within a few weeks. (For example, file domicile declaration, get your license, register to vote all in one week.) Many new Floridians love how easy the state makes it: no special taxes to pay, no complex approvals needed.

One caution: If you are leaving a state that aggressively taxes (Minnesota, New York, etc.), be meticulous. Those states sometimes audit former residents to argue they never truly left (because they miss your tax dollars!). I ensure my clients document everything – keep a log of days in each state, keep receipts, etc., for that first year of transition especially. We want to be able to show, if challenged, that “Yes, Mr. Smith was in Florida for 190 days and only 175 in Minnesota, see his travel logs and utility bills. He changed his voter reg on X date, sold his MN house on Y date, here’s the filed domicile declaration, etc.” When done correctly, the old state usually concedes that you’re no longer their resident. After that, you just have to avoid accidentally triggering residency again (like don’t spend more than half the year back in Minnesota, etc.).

In short, obtaining Florida domicile is a straightforward process, and my firm guides clients through it step by step. We provide checklists, help with the legal filings, and coordinate with your tax advisors to ensure all bases are covered. I’ve been doing this since our firm opened in 2016 – we’ve helped many affluent families make Florida their home in the eyes of the law. It is one of the most satisfying parts of my practice, because I know I am helping clients secure a tax-safe haven for their wealth and a brighter financial future for their families.

Now, with the technical and factual pieces laid out, let’s step back and consider a more relatable scenario. Not everyone reading this is a billionaire like Richard Schulze. But many of you might be wealthy enough to care about these issues (or you wouldn’t be reading a lawyer’s blog on estate taxes!). The following example illustrates, in human terms, what can happen with Poor Planning vs. Rich Planning when it comes to state taxes and moving to Florida.

My Experience

Having practiced law for nearly a decade (I founded my firm in 2016), I have extensive experience in both estate planning and probate litigation. I’ve seen both sides of these situations: families who planned well and families who did not. My experience litigating in probate court has shown me the costly, painful mess that Poor Planning leaves behind – family members pitted against each other and assets dwindling due to taxes, fees, and conflict. On the flip side, my experience crafting estate plans for high-net-worth clients has reinforced how effective proactive planning can be.

When I counsel a client about changing domicile to Florida, I’m not just speaking from book knowledge – I’ve personally guided real families through that transition. I know the common pitfalls (like failing to change a particular registration, or not convincing the former state you’re gone). I also know the profound relief clients feel when they realize they’ve shielded their legacy from an avoidable tax. One client told me, “It feels like I just won a battle I didn’t even know I could fight – now my family and charities will get the fruits of my life’s work, not some state.” Comments like that are what make me love this work.

In my years of practice, I’ve also built a network of trusted professionals – CPAs, financial advisors, trust companies – so that when complex issues arise (like exit taxes, or setting up trusts to own out-of-state property), we tackle them in a coordinated way. My experience extends beyond just paper and statutes; it’s hands-on problem-solving. For example, I once had to prove in a Minnesota tax audit that an elderly couple truly moved to Florida. Drawing on my experience, I assembled a compelling dossier of evidence and navigated the audit successfully – saving the family over $200k in taxes. The tax agent remarked that rarely had he seen such a thorough residency case. That comes with having done this repeatedly.

In sum, my experience has shown me that Rich Planning works. I’ve made it my mission as an attorney to use that experience to benefit my clients – ensuring they don’t repeat the mistakes I’ve seen in my own family’s past or in courtroom battles. I treat each case with the personal care as if I were protecting my own family’s legacy. With that in mind, let’s look at an illustrative story that ties everything together.

Example

The Family Patriarch (let’s call him “Father”) sat at the head of the table during a tense family meeting. Father was a successful business owner in Minnesota, about to retire and thinking about his legacy. His son (“Son”) and daughter (“Daughter”) were there, along with the family’s long-time Banker and their Family Attorney (yours truly).

Father: “I’ve spent 40 years building our company. It’s worth about $50 million now. I want it to stay in the family when I’m gone. I also want to give a lot to our charitable foundation. But I’m hearing from my Attorney that the state will take a big chunk if I don’t act. I need you all to understand what’s at stake.”

Attorney: nodding “That’s correct. As things stand, if you remain a Minnesota resident, your estate would be subject to Minnesota’s estate tax. Given your net worth, we’re looking at an estate tax bill of roughly $7 million to $8 million to the state, at least, upon your death. That’s on top of any federal estate tax. Minnesota’s exemption is only $3 million, remember.”

Daughter’s eyes widen. Daughter: “Seven million dollars… to the government? Dad, that could be the difference between keeping the company or having to sell part of it. We’d have to find that cash within 9 months of you passing. That scares me.”

Son: leaning forward anxiously “We’d likely have to sell some of your stock in the company or take out a loan. Worst case, we sell the whole company if we can’t come up with $7 million quickly. That could mean layoffs or losing control of what you built.”

Father’s face looks troubled. The Banker clears his throat. Banker: “I’ve seen other clients face that situation. One family had to sell valuable real estate that had been in the family 100 years to pay the estate tax. It was heartbreaking. We should avoid that if possible.”

Attorney: “Absolutely. Now, one clear solution is to establish Florida domicile. I’ve mapped out a plan for Father to become a Florida resident. This involves him buying a condo in Florida – which he’s already done in Naples – and officially changing his residency. He’ll spend at least half the year there, file a Florida Declaration of Domicile, get a Florida driver’s license, register to vote, etc. Meanwhile, he would lessen his ties to Minnesota – for example, he’s considering selling the Minnesota lake house or putting it in Daughter’s name now.”

Daughter: smiling a bit “I wouldn’t mind that, Dad, I love the lake house.”

Father: manages a chuckle “We’ll see, honey. I might just gift it to you now rather than let Minnesota tax me for it later.”

Son: “So, if Dad becomes a Floridian, what happens when… the time comes?” He has trouble saying “when he dies.”

Attorney: “If he passes away as a Florida resident, the estate would owe no Minnesota estate tax. Zero. Florida has no estate tax. We would only deal with the federal estate tax. And we already have plans to use the charitable foundation and trusts to reduce that significantly. We could be looking at saving the family roughly $7 million or more in state taxes. That means $7 million more in assets could go to you two and the grandkids, or to the foundation your father set up for scholarships.”

Daughter exhales in relief. Daughter: “That’s incredible. It sounds almost too good to be true. But is it… easy? Will Minnesota just let him go without a fight?”

Attorney: “We have to do it correctly. Minnesota can be sticky – they’ve audited folks. But your father is ready to do everything by the book. He’s already spending winters in Florida because of his health and the weather. He’s ready to make that permanent. We’ll make sure to document that he’s truly a Florida resident. I’ll help with all the steps: homestead exemption, new wills citing Florida law, notifying Minnesota that he’s no longer a resident for tax purposes, etc. I’ve done this for others; as long as we’re thorough, Minnesota will have a hard time arguing he’s still a resident.”

Father: resolute “I’m willing to do this. I love Minnesota, it’s my birthplace. But I can’t justify giving them $7 million that could go to my family and our charity. I can still summer up here with Daughter and the grandkids. But Florida will be home base going forward.”

The Banker raises a practical point. Banker: “Father, you also realize you’d save on your personal income taxes, right? No state income tax in Florida. Last year you paid about $500k to Minnesota in state income tax on your various incomes. That would drop to $0 in Florida. That’s extra money to donate or invest each year.”

Father looks pleasantly surprised. Father: “I hadn’t even thought of that. More money for the foundation each year, then. Wonderful.”

Son: “What about the business? If it stays based in Minnesota, does that cause any tax issues?”

Attorney: “Good question. The estate tax is based on Father’s residency. As long as the business interests are held in a trust or pass to you both, and Father is a Florida resident at death, Minnesota cannot impose its estate tax on the stock shares. We might still pay some Minnesota income tax on the company’s operations, but that’s a different matter; it’s a company tax, not an estate tax. We could also look at possibly moving some operations to Florida down the line, but that’s not necessary for the estate plan to work. The key is Father’s domicile.”

Judge (Probate Court) – If we peek into an imagined future: Fast forward a few years. Father passed away peacefully in his Florida home. In a Florida probate court, the Judge reviews the estate filings and notes that there is no Florida estate tax due (Florida law doesn’t require any estate tax affidavit for post-2004 deaths). Minnesota authorities did take a look, because Father still owned a small cabin up in Minnesota, but since he was clearly a Florida resident, Minnesota only taxed that cabin’s value (a minor amount) and not his whole estate. The Judge signs off on the estate distribution. The Court Clerk smiles, seeing a thick file of proof that Father was a Floridian – the kind of file that heads off disputes. No litigation ensues, no giant checks to the state. The Daughter and Son, now co-trustees of Father’s foundation, proceed to use the saved millions to fund a new children’s hospital wing named in Father’s honor.

This example shows two alternate outcomes: In one, if Father had stayed a Minnesotan, the family business might have been sold or heavily encumbered to pay a tax bill, and a lot less would be available for the family’s use. In the other (the Rich Planning route), Father’s foresight in changing domicile to Florida spared the family and business that fate, and even allowed more charitable work to be done with the saved funds.

Breakdown

Let’s dissect the example to apply the real laws and outcomes:

In our scenario, Father’s Minnesota estate was around $50 million (a sizeable estate, though not as big as Schulze’s). If he remained a Minnesota resident, the estate tax on $50M would be very roughly calculated as follows: $50M – $3M exemption = $47M taxable. Minnesota’s top bracket (16%) applies on almost all of that. The tax might be on the order of $7.5 million (we estimated $7–8M). This aligns with the attorney’s warning in the story. That means the family would have to find $7.5M in cash within nine months of death (the typical time to pay estate taxes). The likely result: selling assets. Often, that could mean selling part of the business or taking out loans (which the business’s next generation then has to pay off). It’s a significant drag on the continuity of a family enterprise.

In contrast, by switching to Florida domicile, Father’s estate for state purposes is governed by Florida. Florida’s estate tax is zero. The only tax due is federal. Now, $50M is above the current federal estate exemption (~$13M), so there would be federal estate tax due at 40% on the amount above the exemption. But even that can be mitigated by planning: The Father could, for instance, set up trusts to use both his and his late spouse’s federal exemptions (if applicable), and direct a large portion to the family foundation which qualifies for a charitable deduction (charitable bequests are fully deductible for estate tax). In practice, savvy planners often reduce the federal tax dramatically for estates that intend to give to charity. In a perfect scenario, Father’s $50M estate might pay little to no federal tax because maybe $30M goes to a charity (deductible) and $20M to kids within exemption limits via planning tools. The details aside, the key point: Minnesota gets nothing. Florida doesn’t tax the estate either. The family business can pass intact.

From a legal standpoint, the example underscored what steps must be taken: Father had to truly change his domicile. The attorney character emphasized obtaining the Florida legal markers (license, voter reg, etc.) and reducing Minnesota ties. This is true to life. If Father had not done those properly, Minnesota could claim he was still a resident and try to impose its tax. But since he followed through (like Schulze did, presumably filing all the right paperwork and spending the time in FL), Minnesota’s argument falls apart. They might try to tax any Minnesota real property (Minnesota can tax in-state real estate owned by nonresidents in a limited way), but that’s trivial compared to taxing the whole estate. In the story, they mentioned Minnesota would tax just the cabin’s value – indeed, states can tax in-state real estate via estate tax even if you’re out-of-state, but it’s proportional and usually a small portion. We often advise clients to put such property in an entity to even avoid that, but I digress.

The Banker’s note about saving on income taxes is accurate. Father was paying, say, $500k per year to Minnesota in state income tax. Florida residency saves him that annually. Over, say, 10 years of retirement, that’s $5 million saved – which could be given to his foundation or reinvested. It’s a reminder that the benefits aren’t just at death; they accrue during life too.

The latter part of the example imagined the probate/administration after death, showing the difference. In Florida, probate for a domiciliary is done in Florida courts. There’s no requirement to file a Minnesota estate tax clearance if not a MN resident (except possibly to deal with property there). Florida’s process doesn’t involve any state estate tax forms after 2005. So it’s generally smoother. The example showed the Judge and Clerk being satisfied because all was in order – a contrast to a scenario where there might be litigation or audits if residency was unclear.

Finally, let’s connect it back to emotions and legacy: In the good outcome, the kids preserved the business, and Father’s legacy was honored (even a hospital wing named after him using the tax savings). In the bad outcome (had he not moved), the legacy could have been tarnished by financial strain or even the sale of the company he built (which might mean losing the family’s identity or local jobs, etc.). This reinforces why Rich Planning is not just about dollars – it’s about what those dollars represent: family continuity, jobs, philanthropy, harmony, and peace of mind.

This hypothetical example, while simplified, is very close to situations I see with clients. The roles (Father, Daughter, Son, Banker, Attorney) all play parts in real life estate planning for wealthy family businesses. Often there is a family meeting just like that, weighing the move to Florida. I’ve sat in those meetings myself, as the attorney at the table.

The takeaway from the breakdown is clear: Legally and financially, establishing Florida domicile can neutralize Minnesota’s taxes. But it requires careful execution and guidance.

Let’s wrap up with a personal note from me and some resources for further reading.

Author’s Note

I want to speak to you now not just as an attorney, but as someone who deeply cares about families and their legacies. I got into this field because of what happened in my own family with Poor Planning – I’ve felt that pain, and it drives me every day to help others avoid it. Every time I assist a client in moving to Florida to protect their wealth, or in setting up a trust to shield their kids from turmoil, I feel a sense of fulfillment. I’m not helping faceless dollars; I’m helping moms and dads, sons and daughters, preserve dreams. The businesses you built, the nest egg you amassed, the charitable causes you care about – those are pieces of your heart. I understand that on a human level.

When I tell someone, “We saved your family $7 million in taxes,” I don’t see just a number – I see college educations funded, charities endowed, maybe a family vacation home kept for future generations. I see peace of mind. I see a patriarch or matriarch breathe easier knowing their loved ones won’t be burdened or torn apart. That is why I do what I do.

I also know that making these big life changes – like relocating in retirement – can be emotional. You might feel guilty about leaving your old state, or anxious about the unknowns. I’ve walked that road with clients. I reassure them: you’re not “abandoning” your home state or being unpatriotic; you’re making a wise decision for your family’s future. You can still love Minnesota (or wherever) and even keep a foothold there. You’re simply choosing the optimal environment for your financial well-being. And Florida is a pretty welcoming place – I’ve seen even skeptical clients grow to love their new Florida lifestyle, finding new friends and communities here.

Trust is vital in this process. When you work with me, you’re not just getting a technician to file forms. You’re getting someone who truly cares about what keeps you up at night. I listen to your worries about family dynamics, your hopes for your grandchildren, your charitable passions. We craft a plan that’s technically sound and aligned with your values. And I’ll hold your hand through it – whether it’s dealing with a confused relative who doesn’t get why you’re moving, or a tricky state auditor down the road. I’ve got your back.

In the end, my goal is that you feel understood, protected, and empowered. I want you to sleep well knowing you’ve done everything in your power to secure your legacy. The smile of relief on a client’s face when a plan is set – that’s my reward. I truly love helping people in this way. It’s more than legal work; it’s legacy work, it’s healing work (sometimes healing generational wounds by preventing new ones).

So, if any of this resonates with you – if you’re thinking “maybe I should explore this Florida strategy” or “I want to be a Rich Planner, not a Poor Planner” – I’m here. It would be my honor to bring my experience, expertise, and heart to your family’s situation.

Thank you for reading this comprehensive deep-dive. It means you care about doing right by your family. And that’s the first step toward Rich Planning.

Books Worth Reading

I’ve written several in-depth guides that you may find helpful as you continue to educate yourself and plan for the future. You can download them for free:

• The Essential Guide to Florida Estate Planning – Protecting Your Legacy and Family – Download
• Star Spangled Planner – Protect Your Family and the Second Amendment with Estate Planning – Download
• Global Family’s Guide to U.S. Inheritance Law – The Gold Card Advantage – Download
• The Florida Realtor’s Guide to Probate Properties: From Listing to Closing – Read Now

Feel free to grab any (or all!) of these resources. They’re packed with insights drawn from my experiences and are written in a reader-friendly way.

Fun Learning with Celebrity News Videos

For a lighter take on estate planning lessons – often drawing from celebrity news and cases – check out my short videos on social media. I believe learning can be fun and engaging, and I use current events to illustrate legal concepts.

• Follow me on Facebook: JOValentino – where I post updates and videos.
• Subscribe on YouTube: @JOValentino/shorts – quick-hit videos with estate planning tips & celebrity estate dramas.
• Follow on Instagram: @valentinojov – for behind-the-scenes and informative reels.
• Follow on X (Twitter): @JesusOValentino – join the conversation and see my takes on trending probate news.

Connect with me on those platforms for ongoing education – I often cover how famous estates (from Prince to Val Kilmer to Elvis’s family) handled things right or wrong, and what we can learn from them. It’s an entertaining way to stay informed.

You have three ways to get in touch with me:

1. Call me at (305) 634-7790
2. Email me at JO@JOValentino.com
3. Fill out the contact form on my website: JOValentino.com/contact

I encourage you to reach out if you have any questions or if you’d like personalized guidance on your situation. The sooner we start planning, the better the outcome can be.

This article is for informational purposes only and does not create an attorney-client relationship. The only way to establish an attorney-client relationship with me is through a signed written agreement confirming that I have agreed to represent you.