How Does Florida Tax Large Estates?
If you are planning for the future and how you want your estate and wealth to be distributed to your heirs you likely want to give them the most possible once you pass on. However, if you have a large estate, you have to be concerned about how taxation can impact what is taken from your estate before it goes to your heirs. For questions about tax and estate planning, The Villages tax planning attorneys at Millhorn Elder Law Planning Group are here for you to address your questions and provide you with strategic legal guidance.
How Much Can Florida Take from a Large Estate?
If you were able to amass enough wealth that you have what is considered a large estate, then there is no doubt that tax considerations are on your mind. This is why working with a Florida tax planning attorney can be so beneficial. In the beautiful community of The Villages, Florida, Millhorn Elder Law Planning Group is a tax planning and estate planning law firm that can help you take advantage of any of the options in the tax code that can minimize your financial burden.
The good news for residents of Florida is that the state itself does not inflict an estate tax on its population. However, the federal government does. And, the government is quick to take as much as they can from one’s estate. The federal estate tax rate can be as high as 40% which is quite substantial.
When tax planning with a robust estate, as of 2021, the first $11.7 million of one’s estate is exempt from federal estate taxation. Beyond that, however, taxes can be very steep. Though, for a married couple, as much as $23.4 million may be exempt from taxes.
Individuals that have much larger estates than these are not out of options when it comes to sheltering wealth. Irrevocable trusts are one method that could be used to minimize estate tax liabilities. These trusts allow a grantor to place their assets, but after they do, they lose their rights to ownership of them. Then, any terms of the trust cannot be changed unless permission is granted by the trust’s beneficiaries.
Unlike revocable trusts, irrevocable trusts are often used as a means for tax-shelter benefits. Once the trust is set up, those assets held within are taken away from them what would be left under the ownership of the grantor and therefore subject to taxation. If the assets continue to generate income while in the trust, the grantor would not be accountable to pay the tax burden on the additional money.
Speak to a Florida Tax Planning Lawyer Today
If you have done well in your life and you would like to learn more about how you can bypass excessive taxes on your estate, the Florida tax planning lawyers at Millhorn Elder Law Planning Group can help you devise a plan best suited to your needs. Call Millhorn Elder Law Planning Group today to speak with a Florida tax planning lawyer during a free consultation at 800-743-9732.