How Does The State Of Florida Handle Estate Taxes?

The state of Florida handles estate taxes in a manner that is quite different from most other states. This means that your estate must be managed in a slightly different manner than, say, if your estate plan was developed in Oregon.

Going over how the state of Florida handles estate taxes, and speaking with a lawyer, will allow you to protect your estate from unnecessary taxation.

Does The State Of Florida Have An Estate Tax? 

To answer the question above, “No, the state of Florida does not have an estate tax.”

What this means is that the state of Florida does not have any sort of estate tax, allowing you to transfer assets to another person, without any taxes being imposed on that transfer.

Just as an example, if you want to give your house to your daughter, then you can do so, without paying any estate taxes that the state of Florida has imposed upon you.

Even though the above is true, this does not mean you will never need to pay any estate taxes. And, the reason for this is as follows: the Federal government has its own estate tax and, given the fact that this is a Federal tax, it must be abided by, no matter what state you live in.

What Is The Federal Estate Tax? 

The Federal estate tax exemption is $13,610,000. Or, if you are married, the Federal estate tax exemption becomes $27,220,000.

If your estate is smaller than that, then you do not need to pay any Federal estate taxes. But, if your estate is valued at more than 13.6 million dollars, then you will need to pay federal estate taxes.

The exact amount you will need to pay is dependent on the value of your estate.

Just as an example, if your estate is especially valuable, there is a chance you may need to pay a taxation rate that is close to 40%.

Even though the above is uncommon, it can happen, if your estate is especially valuable. You will not need to pay Florida estate taxes, though, which can make things a little easier.

What About Inheritance Tax And Gift Tax? 

The state of Florida does not rely on an inheritance tax. Or, for that matter, a gift tax.

If you develop an inheritance, or are set to receive one, you will not need to pay any state taxes on that inheritance.

The same is true of gift taxes. You will not need to pay them, should you give your loved ones a gift, or receive a gift that was given to you.

Even though the above is true for the state of Florida, the Federal government does have its own gift tax. This gift tax exemption is $18,000, which means that if you give someone a gift that is worth more than $18,000, there are taxes that must be dealt with.

Speak With A Florida Estate Planning Lawyer Today

If you would like to develop an effective estate plan, but aren’t sure how, then you need legal help. Speak with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today and we will help you do so.

Sources: 

floridarevenue.com/taxes/taxesfees/Pages/estate_tax.aspx

irs.gov/businesses/small-businesses-self-employed/estate-tax