The issue of where you are domiciled is relevant for everyone who writes a Will and very often misunderstood. A person’s domicile connects a person to a particular legal system and in doing so governs transactions such as marriage, divorce, succession of property and inheritance tax. A person’s domicile is related to a distinct legal jurisdiction such as a country such as England or Wales or a state within the USA but not to the United Kingdom or the USA as a whole.

Although a person may have more than one nationality, that person must always have a domicile. A person’s domicile is often attributed to their permanent or natural home but it can best be defined as the place with which a person has the closest personal connections and ultimately where they intend to live and die.

As so much can turn on a person’s domicile of origin, including for the purpose of inheritance tax planning, examination of a person’s background and family circumstances going back many years can occur to establish the domicile of origin. Ultimately, a person’s domicile of origin is fixed at the time of birth and is the same as that of the person to whom they are legally dependent.

A domicile of origin is hard to displace but not impossible. A domicile of choice is acquired by taking up residence in the country of choice with the intention of living there permanently. When people relocate overseas and have lived for a few years in a different country it is a common misconception that their domicile has also changed. However, when a person is posted overseas for work purposes, there is no presumption of a change of domicile. The necessary weight of proof and evidence required to establish a domicile of choice are difficult matters to access.

It is worth noting that there has been judicial tendency to accept a person’s domicile of origin and to attach less significance to their length of residency in another country and the likelihood of acquiring a domicile of choice there. In order for a domicile of choice to be recognised, amongst other things, a person can have no property, bank accounts or any other assets held in their domicile of origin. If a person intends to be buried or cremated in the country which is their domicile of origin, this will result in their domicile of choice having no relevance.