Tax Considerations For Your Estate With Florida And Federal Estate Taxes
Putting an estate plan together can be an in-depth and intensive process because of the many aspects to think about and include. One of the most important to consider is how taxes will impact your wealth. Ultimately, no matter how rich you are preparing your estate plan to minimize your tax burden is usually a factor that matters. If you plan carefully, you may be able to keep more of your wealth to pass on to your beneficiaries and substantially reduce the taxes your estate will face.
If you are ready to put together an estate plan in Florida or if you have one that needs updating, The Villages tax planning attorneys at Millhorn Elder Law Planning Group can assist you with either task. When you work with an attorney at Millhorn Elder Law Planning Group you will have the benefit of legal counsel that knows how to meet the objectives you have for your estate plan while also reducing the taxes that are taken from it by the government.
Does Florida Have an Estate Tax?
Florida is not one of the states in the nation with an estate tax. But other states may have an estate tax and if you have property outside of the state of Florida it is important that you find out more about what your tax liabilities in other states could be.
When an estate or inheritance tax exists, the government takes its portion from the estate before beneficiaries get theirs. Essentially, after the government assumes their taxes on the estate, only then can the beneficiaries be distributed what is left after an individual dies.
Even though there is no estate tax in Florida, that doesn’t mean that an estate will not be subject to federal laws. While the rules and guidelines can and do change, currently, only those estates that have a value of over $12.06 million will have to deal with federal estate taxes. It is critically important that those individuals who have this type of wealth work with an estate planning lawyer. Although, even if you do not fall into this category you can still benefit from partnering with a lawyer who understands various tax advantages and exactly how to make the most out of them to benefit your estate.
In addition to state and federal death taxes, Florida does not apply a gift tax. The federal government will though, depending on how expensive the gift is. The annual exclusion amount is $16,000 or $12.06 million over a lifetime.
Speak with a Florida Estate Planning Attorney Today
Beyond these taxes above, retirement accounts, assets that generate income, or the proceeds from the sale of inherited assets can all be subject to tax implications. Not leaving money on the table if you do not have to with the wealth you worked for over your lifetime is essential. To make the most out of your estate plan and keep the majority of it going to your beloved beneficiaries, please call the Central Florida estate planning lawyers at Millhorn Elder Law Planning Group at 800-743-9732. Initial consultations are complimentary.