We plan to start RVing full-time in a few years and we are currently researching domicile options. Our top consideration is eliminating any potential legal challenges, particularly related to health insurance coverage. Our concern is not initial eligibility, but if a significant health event were to occur in the future and cause the health insurance company (e.g., BCBS) to place our claim(s) under a microscope, we do not want our “legal” address, time spend in the domicile state, etc. to cause our health insurance coverage to be cancelled/challenged.

We are considering Delaware, Texas and South Dakota –in that order. I am hoping some RV-Dreams full-timers who previously considered Delaware as a domicile could share why they ultimate choose or did not choose Delaware.

We are currently not residents of any of these states and do not have relatives/friends living in these states—so we would likely need to use the address of a mail forwarding service as our legal address. Delaware is attractive, because we have family members who live in adjacent states, so we will be in the Delaware area annually, if not more regularly (i.e., domicile/residency intent would be strong.) Texas is attractive because of the Escapee address, since that “legal” address was previously challenged (and legally validated) at least from the standpoint that full-time RVers using that address have a right to vote. Our current state is not a domicile option; the available health insurance options only allow for emergency room services out-of-state as well as we do not have plans to spend time in that state.

I realize that Delaware has a State Income Tax (2.2-6.75%) and has a vehicle registration/title fee of 3.75% on new vehicle purchases as well as when a new resident registers an existing vehicle (i.e., there is a registration/title fee of 3.75% on the vehicle’s NPV.) From a cost perspective, based upon my review of our likely health insurance costs, RV and truck sales taxes/registration fees as well as income taxes – the costs are not significantly different across the three states, if I look at a several year average, or at least not enough to have me potentially risk a legal challenge related to our domicile choice.

Although I have looked at related threads on RV-Dreams and other blogs as well as Delaware related websites, I have not been able to determine if Delaware recognizes the address of a “Mail Forwarding Service” as a “legal” address for someone who is a full-time RVer. Additionally, is there a requirement about the amount of time that someone must spend in the state, from “legal” address perspective or for BCBS health insurance? I noticed that an older RV-Dreams blog entry mentioned a Delaware 6 month residency requirement, but given the blog entry is several years old and I have not been able to locate any corroborating information, I am not sure that is still accurate.

Any insights would be greatly appreciated. Thank you!

Lyn,

Sounds like you have done your homework.  Well done!

Of course the biggest issue among the three states you are comparing is the state income tax of Delaware.  But if, as you have determined, that's not a large issue for your circumstances, then Delaware might very well be a good choice.

Delaware has a long-standing reputation for being business-friendly and allowing businesses across the country to incorporate there for favorable treatment whether or not they conduct most of their business in the state.  Thus there are bunches of mail-forwarding services for businesses, but I can only find a few that cater to RVers.

One is Delaware Mailboxes, LLC.  And yes, they do offer a street address rather than a P.O. Box.  I would check with them about the number of RVers they have on their roster and whether there have been any legal challenges or issues.

I would also check with the state and BCBS.  It's delicate and sometimes the less they know the better.  However, if you have concerns, it is better to get something official in writing.

Since health insurance is still a state-by-state thing, I know some states do have length of residency requirements on health insurance, but they aren't easy to find.  Again, I would inquire directly with the health insurer to see if that's an issue.

I suspect the income tax and the fact that Delaware isn't very convenient in most full-timers' travels are the two biggest reasons folks don't "domicile" there.  But, as you have learned, sometimes the best state for you isn't necessarily the most popular state for everyone else.  

Howard,

Thank you for your reply!

Great idea to contact Delaware Mailboxes, LLC and ask them about the number of RVers they have on their roster and whether there have been any legal challenges or issues.

As you stated, I will likely need to contact Delaware State and BCBS directly. I was hoping to validate information with them versus having those conversations focus on fact finding -- as you shared, it can be a delicate conversation and the more information I have prior to speaking with Delaware and BCBS would likely be to our advantage.

Howard, thank you again for your reply and great suggestion!

So others can also benefit, I contacted Delaware Mailboxes, LLC. They were very helpful and informative. They let me know that although they provide customers with a street address (rather than a P.O. Box), Delaware DMV will not allow the use of that address for Vehicle Registration, Vehicle Licenses, etc. Delaware State requires a residential street address.

Delaware Mailboxes additionally shared that some Full-Time RVers had tried to use the mail forwarding street address for DMV purposes and were unsuccessful. The Full-Time RVers who use their mail forwarding services either retained their Delaware residential address or potentially are using the residential address of a family member or friend.