When to use Affidavit of Domicile
When an individual passes away, the executor of that individual’s estate may need to provide various forms of legal documentation to any number of interested parties (including creditors, insurance companies and anyone affected by a transfer of property the deceased left behind) when managing the estate of the deceased. For example, proof of where the deceased lived before his or her death, proof of title or ownership for valuable property being passed on and proof of death may all be requested by interested parties during the management of a deceased individual’s estate. When an executor needs to transfer certain investments held by the deceased, such as certain bonds or stocks, an affidavit of domicile may be required in order to prove the state in which the deceased lived before he or she passed away.
Please note that an affidavit of domicile is not the same as an affidavit of residence. An affidavit of residence is generally used to prove the current address of a living person.
When an executor cashes out certain investments on behalf of a deceased individual’s estate, a number of documents must first be filed before an investment firm or other relevant organization will finalize the executor’s claim and pay the balance of the investments in their entirety. In addition to submitting a stock power letter, an affidavit of hardship and/or letters of appointment, an executor must generally prove the residence of the deceased through production of an affidavit of domicile. Once these documents are properly submitted and processed, the investment firm or other interested party will be empowered to release the affected assets.
One of the reasons why this document is critical is that it determines which state will levy death taxes against the estate of the deceased. As an affidavit is a sworn statement, it is imperative that it is accurately completed and properly notarized before it is used for legal purposes.