Written by Jeffrey Skatoff • December 28th, 2009
We are often asked whether Florida imposes an inheritance tax or estate tax on the estates of deceased persons. Thankfully, there is no Florida inheritance or estate tax. There are estate taxes that Florida residents need to be aware of: the Federal estate tax, and the estate taxes and inheritance taxes that other states might impose.
The current federal estate tax exemption amount is $5.25 million (as of 2013), indexed for inflation. The current estate tax rate is 40% (as of 2013). A more in depth treatment of the federal estate tax is available.
Residents of Florida who own real estate in states that impose a state estate tax could be subject to such taxes in the absence of good planning. Those states with a state estate tax include many of the states where Florida residents have migrated from, including Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, and Rhode Island.
Finally, some states impose an inheritance tax on property owned within that state, even if the deceased did not reside in that state at the time of death. The inheritance tax is imposed on the recipient of the property, but normally only if the recipient is a resident of the state imposing the inheritance tax.
The lawyers of the firm have experience in helping our clients reduce the incidence of the Federal estate tax through the use of creative estate tax planning techniques. We can also help our clients reduce or eliminate state estate and inheritance taxes imposed by states other than Florida.
Should you wish to discuss a Florida inheritance, estate, probate, or tax matter, please contact Jeffrey Skatoff or Craig Dreyer, at (561) 842-4868.
Written by Jeffrey Skatoff.