Among the most frequent matters that we address when people are planning their estates are the impact that estate taxes will have on their heirs. It is understandable that people would want to avoid as many of these taxes as possible while maximizing the value of their estates. Fortunately, estate taxes impact only a small portion of Fort Lauderdale estates.
There is currently no state estate tax that impacts any estate in Fort Lauderdale. However, similar taxes in other states may lessen the ability of heirs to receive the full benefits of their inheritances. In addition, the federal estate tax may still apply to estates of exceptional value. Marc Brown, P.A., our skilled probate attorney, can provide more information about the estate tax in Fort Lauderdale probate cases and how to craft plans that limit their influence on the future.
Fort Lauderdale No Longer Levies an Income Tax
A monumental change in estate planning occurred on January 1, 2005. On this date, federal laws changed in a way that rendered Florida’s estate tax obsolete. Due to this change, the estates of any person who dies after January 1, 2005, do not need to pay a state income tax. However, personal representatives may still need to submit Form DR-312 to the state’s department of revenue to certify that there is no need to pay estate taxes.
Our experienced attorney can help guide you through the process of filing any applicable estate tax forms.
Other States May Retain Relevant Taxes
Although Florida does not levy an estate tax, governments in other jurisdictions may still have these laws on the books. In addition, they may employ inheritance taxes that seize a portion of a person’s inheritance after they receive assets at the conclusion of probate. While this will not affect the estate in this state, it may lessen the overall value of property.
Because of this, it is important to research the applicability of these laws when selecting heirs and beneficiaries. Our knowledgeable lawyer can help you perform the necessary research and act to craft estate plans that aim to limit the impact of other states’ estate taxes.
When Does the Federal Estate Tax Apply?
One tax that has the potential to apply to every estate in the country is the federal estate tax. This remains in effect for all people who pass away anywhere in the United States. Even so, it only impacts a small portion of the estates that go through probate.
The Internal Revenue Service has laws say that estates with an initial value of $11,700,000 or more are subject to taxation. The federal government will seize a portion of the estate that is in excess of this amount. As the value of the estate grows, so too does the percentage of the estate that must go to the IRS. This means that this is a progressive tax. Our well-versed attorney can explain the federal estate tax and determine whether it will lessen the value of an estate.
Contact an Attorney about Fort Lauderdale Estate Taxes in Probate Cases
When forming an estate plan, it is vital to take every step that aims to help an estate retain its maximum value. This includes understanding the various estate taxes that may apply and acting to minimize their impact.
The state does not levy an estate tax. However, others may seize a portion of an inheritance if an heir lives in those locations. Proper beneficiary selection can help to lessen this loss of value.
In addition, you must determine whether the federal estate tax will apply to your case. This involves estimating the value of your estate as only estates with a value in excess of $11 million will lose a portion of their value. Reach out to Marc Brown, P.A. now to evaluate the estate tax in Fort Lauderdale probate cases.