Almost everyone needs an estate plan, no matter how simple or complex their finances may be. However, your estate’s plan should always reflect your individual circumstances. Even though most people should write a will and execute powers of attorney, wealthy families face obstacles in succession that others don’t—obstacles like the possibility of litigation, or the very real threat of debilitating estate taxes. Here, we share how our Palm City and Stuart estate planning lawyers can help you protect your assets and your loved ones while building generational wealth. Schedule a Vision Meeting Table of Contents Lay the Foundation of a Florida Estate Plan Anticipate Taxes and Other Obstacles Build a High-Net-Worth Estate Plan Do You Need to Speak to an Estate Planning Lawyer? Lay the Foundation of a Florida Estate Plan Your estate plan in Florida should include basic safeguards to protect yourself, your family, and your estate from threats like intestacy and incapacity. In general, this means: Writing a will. Drafting and executing a last will and testament is the only surefire way to shield your estate from the risk inherent to an intestate succession. Executing powers of attorney. Powers of attorney let a trusted agent make decisions on your behalf in the event that you are ever incapacitated by injury or illness. Different powers of attorney serve different purposes and can be used to ensure that your finances stay stable if and when you’re incapable of managing them yourself. Establishing an advance care directive. An advance care directive sets conditions on the treatment you should receive if you are ever incapacitated and unlikely to recover. Anticipate Taxes and Other Obstacles Florida eliminated its state-level estate tax in 2005, but high net-worth families still face steep risks in the form of the federal estate tax. The federal estate tax is applied if and when the total value of an estate exceeds a predetermined threshold. Only the excess amount, termed the “taxable amount,” is subject to taxation. In 2024, the federal estate tax threshold was $13.61 million, with rates set at the following levels: A tax rate of 18% on taxable amounts between $1 and $10,000 A tax rate of 20% on taxable amounts between $10,000 and $20,000 A tax rate of 22% on taxable amounts between $20,000 and $40,000 A tax rate of 24% on taxable amounts between $40,000 and $60,000 A tax rate of 26% on taxable amounts between $60,000 and $80,000 A tax rate of 28% on taxable amounts between $80,000 and $100,000 A tax rate of 30% on taxable amounts between $100,000 and $150,000 A tax rate of 32% on taxable amounts between $150,000 and $250,000 A tax rate of 34% on taxable amounts between $250,001 and $500,000 A tax rate of 37% on taxable amounts between $500,001 and $750,000 A tax rate of 39% on taxable amounts between $750,001 and $1 million A tax rate of 40% on taxable amounts above $1 million Since the estate tax is graduated, tax levied at lower brackets could be inconsequential. However, for families worth substantially more than the federal exemption threshold of $13.61 million, the risk presented by a flat 40% rate almost always warrants extensive preparation. Build a High-Net-Worth Estate Plan You need more than the foundation of an estate plan if you own or control assets within the mere range of the Internal Revenue Service’s exemption limit. Depending on your circumstances and your aspirations, Beacon Legacy Law could help you explore the benefits of wealth-transfer strategies including, but not limited to, the following: Grantor Retained Annuity Trust (GRAT). The grantor receives annuity payments from this irrevocable trust. Assets may be transferred tax-free to heirs. Generation-Skipping Trusts. Also known as dynasty trusts or legacy trusts, these trusts allow assets to be transferred to the grantor’s grandchildren to reduce estate taxes. Irrevocable Life Insurance Trusts. Insurance benefits may be paid into this type of trust, which holds them in trust for your beneficiaries. Spousal Lifetime Access Trust (SLAT). This trust allows a married couple to benefit from the trust while naming descendants as beneficiaries. Do You Need to Speak to an Estate Planning Lawyer in Palm City or Stuart? If you need help creating an estate plan to secure your future, call (772) 266-5108 or contact us online to schedule a vision meeting. We’re proud to serve residents of Stuart, Palm City, Jensen Beach, Jupiter, Jupiter Island, Tequesta, Hobe Sound, and Port St. Lucie.
