Do I Need to Pay Estate Tax in Plantation?

Estate tax, also known as inheritance tax or “death tax,” is a common concern for many Florida families. You may be particularly concerned about this issue if you have a high net worth. That being said, most individuals want to leave behind as much wealth as possible to their loved ones, regardless of how much financial success they have had during life. Will you need to pay estate tax in Plantation? If so, how do you reduce this burden?

There Are No Estate Taxes in Florida

Florida is an attractive state in terms of tax planning, and this extends to estate tax. In the same way that there is no income tax here, there is also no estate tax or inheritance tax. This should be reassuring to the vast majority of families in Florida. However, you may still incur federal estate taxes if you pass away with substantial assets. You might want to discuss your unique situation with an experienced estate planning lawyer if this is the case.

Only the Wealthy Need to Worry About Estate Taxes

While Florida lacks estate taxes, the federal government may still enforce them. That being said, federal estate taxes only “kick in” when estates reach relatively high values, ($15 million per person or $30 million per couple in 2026). Even if you pass away with millions of dollars to your name, your family may not incur any estate taxes before inheriting the assets.

How Do I Avoid Estate Taxes?

If you are planning on leaving behind a relatively substantial fortune worth tens of millions of dollars or more, you can benefit from various estate planning strategies to reduce estate taxes. Perhaps the most obvious approach is to establish a trust. Many high-net-worth families rely on generation-skipping trusts to reduce multiple rounds of estate taxes. This type of trust skips a generation and distributes assets directly to grandchildren. However, a generation-skipping trust is only one example of a strategy that might prove effective. Speak with a lawyer for more personalized guidance.

Can a Plantation Estate Planning Lawyer Help Me?

A Plantation estate planning lawyer may be able to help if you want to deal with the issue of estate tax. Although this problem is reserved for relatively high-net-worth families, it always makes sense to reduce burdens for your loved ones wherever possible. You can do this by speaking with a lawyer and assessing various strategies. Continue this conversation with 411 Probate today.

Source: 

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