Throughout the nation, many people worry about an estate tax. But is there a Florida estate tax? Twelve states and the federal government levy estate taxes against the assets you leave to your heirs, so it’s only natural to wonder about Florida’s position on estate taxes and whether your own assets will become subject to this penalty. At Elder Law, we work with individuals like you who are trying to prepare themselves and their assets for the future. Often that includes tackling questions about the Florida estate tax.
Does Florida Have an Inheritance Tax?
Florida is easily one of the tax-friendliest states in the nation. There’s no income tax, the property taxes are low, and that likely won’t change in the near future. Florida doesn’t have an estate tax either, but just because the state of Florida doesn’t have one doesn’t mean your estate won’t be subject to taxes.
But What Exactly is an Estate Tax?
Estate taxes are sometimes called “Death Taxes” or “Inheritance Taxes,” and for good reason. They’re aimed at those who inherit assets of any kind from a decedent’s estate. A decedent is someone who has passed away.
When You May Have to Pay Estate Taxes
In most cases since there is no Florida estate tax, you will never have to pay estate taxes in Florida, and neither will your heirs. If, however, you inherit property or assets in another state, you may have to pay taxes to that state based on what you inherited. For example, in Pennsylvania, if you inherited a million-dollar property from someone living in the state, you would owe an inheritance tax to the state of Pennsylvania, even if you live in Florida.
Your heirs also won’t have to pay a Florida estate tax. Despite that fact, though, if your estate is worth more than $11.7 million, your heirs will have to pay the federal estate tax. There is an exception for married couples – they may leave an estate size of up to $23.4 million before estate taxes are required – but generally the larger the estate, the higher the federal estate tax rate. It could be as high as 40%.
Avoid Estate Taxes With Planning
Hoping to avoid estate taxes if you can help it? We can help. Our dedicated professionals can help you create the ideal estate plan so your beneficiaries can inherit your property without the worry of estate taxes. To learn more, contact us today.