Interview with Carl Burnham III, CLU, CHFC®
Thinking about retiring out of state? You are not alone.
According to a 2024 study done by AARP over 266,000 retirees moved across state lines for a different way of life.
Whether it's to escape the snow and gray winters, reduce taxes, or enjoy a more affordable lifestyle, more and more retirees are packing up and making a new state their primary home. But before you put a "For Sale" sign in the yard, there are some important financial and legal factors to consider.
I sat down with Carl Burnham III, CLU, CHFC® who leads the Wealth Management and Financial Planning team at Deschutes and has more than 20 years of experience helping clients, families, and business owners achieve their goals.
His expertise includes:
- Complex financial planning
- Estate Planning
- Gifting and charitable strategies
- Insurance consulting
Carl has also developed a niche in helping people retire out of state. In this interview, he shares key trends, state-to-state comparisons, and actionable tips for establishing residency elsewhere while protecting your wealth and legacy.
Question 1) Carl, you have been helping people retire for many years. What are some of the trends you have noticed over the last few years?
Answer: By far one of the most popular questions I get from our clients either getting ready to retire or who already are retired, is if they should make their primary residence outside of their home state. My answer is usually yes but every situation is different. Many clients have close ties to Oregon, or wherever they have been living and therefore want to maintain a residence for at least part of the year. We see many people choose to sell their primary home and replace it either with a small condo, home, or even a rental.
Question 2) What are some of the reasons clients are choosing to have a primary residence outside of their current home state?
Answer: Each situation is unique but some of the primary reasons include:
1)Better weather in the winter months. Many clients simply want to do the activities they enjoy for more of the year. Typically, after spending a few years traveling, we see retired clients settle on a favorite place to vacation during the winter.
2)Retirement Communities offer built-in lifestyle activities and amenities. After spending many years helping people retire, I know that staying active both physically and socially is very important. Many of my clients who have moved to retirement communities out of state find they are living an almost resort-like retirement with many opportunities to connect and make new friends. In addition, many of my clients find that their family and friends come to visit more so they can also enjoy the amenities.
3)Cheaper cost of living - Choosing a State with a lower cost of living means retirees can either stretch their retirement dollars out for more years, buy more houses, and travel more. For example, a couple living on $160K pre-tax in Oregon would only need about $136K to maintain the same lifestyle.
Here’s a Cost of Living Calculator:
i. https://www.nerdwallet.com/cost-of-living-calculator/compare/portland-or-vs-phoenix-az
4) Paying less in taxes - Unfortunately, our state of Oregon is one of the most expensive states for retirees. Oregon has a top marginal rate of 9.9%. Portland has the highest combined local income tax in the nation at 4%. Comparatively, Arizona has a flat tax of 2.5%. Here’s a link for State Tax Rates.
i. https://taxfoundation.org/data/all/state/state-income-tax-rates/
5)Leaving more of their estate to their heirs. The Federal Estate Taxes are imposed on estates valued at $13.99 million. The state of Oregon only exempts estates under $1Million.
6)Moving closer to children and grandchildren. Emotional connection and caregiving needs become front and center for some in retirement.
Question 5) You currently have many clients spending time during the winter months in another state, what guidelines someone should follow to establish residency in a new state?
Answer: While every state has different rules for establishing residency, here are some typical requirements:
1) Spend 183+ Days in the New State. Many States follow the 183-day requirement which means that individuals must spend more than 6 months of the year in the new state.
2) Register to Vote. Sign up in your new state and cancel your old registration.
3) Get a New Driver’s License & Register Your Vehicles. Update your ID and plates—typically required within 30–60 days.
4) Buy or Lease a Home.Establish a physical address that supports your intent to stay.
5) Change Your Mailing Address. Notify USPS, financial institutions, Social Security, Medicare, etc
6) Update Financial Accounts. Use your new address on bank, brokerage, and retirement accounts.
7) File a Part-Year or Non-Resident Tax Return.This helps avoid confusion or dual taxation in your former state. If you recently moved or spent considerable time in another state, check out the residency rules that apply to you. www.investopedia.com
8) Update Estate Planning Documents. Laws vary by state—review your will, healthcare directives, and powers of attorney.
Question 6) What other tips do you have for clients, considering moving out of state?
Answer: Of course, I suggest clients update their financial plan before making the final decision to move out of State. In addition, they will need to update their Estate Plan, establish new health providers, and update any professional licenses (CPA, Financial Advisors, Insurance Agents, Attorney, Physicians etc).
The Bottom Line: Plan the Move, Don’t Just Make It
If you’re dreaming of palm trees, resort-style communities, or simply a better tax situation, moving your primary residence out of Oregon can be a smart decision—but it’s not as simple as changing your driver’s license. From updating your estate plan to following the right steps for residency, proper planning is essential.
Before you decide to relocate, talk with your financial advisor and estate planning attorney. The right strategy can help you avoid double taxation, stretch your retirement dollars, and leave more of your estate to loved ones.
As Carl reminds us, "Every situation is unique—there’s no one-size-fits-all solution, but there are smart steps everyone should consider."
Thinking of making the move? Our advisors are here to help. Get In Touch
