How Future Tax Considerations Impact Your Estate Planning Now

Estate taxes can create a financial burden for your estate without proper planning

Did you know that estate taxes, commonly referred to as “death taxes,” apply to the transfer of property at death? The federal government imposes estate taxes on estates exceeding certain thresholds. However, the landscape of state-level estate and inheritance taxes varies significantly across the country. For purposes of this article, we will focus on Florida.

In short, there are no estate or death taxes in Florida. Only a handful of states, including Florida stand out because no estate or death taxes are imposed. No state estate tax is a relief for residents, especially new residents, and simplifies estate planning from a tax perspective. This does not mean Floridians, however, can afford to overlook the broader spectrum of estate planning and tax considerations. Consider these reasons why Floridians still need to be tax-aware:

Federal estate taxes still apply.

Despite Florida’s stance, the federal estate tax remains a concern for estates that exceed the federal exemption threshold. This necessitates strategic planning to mitigate potential federal tax liabilities.

Property in other states remain subject to estate taxes.

When Floridians own property in other states, estate or inheritance tax laws of those states could affect their estate planning. Property ownership in a state that levies estate or inheritance tax requires cross-jurisdictional planning with your experienced estate planning attorney.

Anticipating legislative changes.

Tax laws are subject to change, both at the federal level and in other states where you may have ties. This often happens rapidly. A proactive approach to estate planning, with a keen eye on potential legislative developments, remains crucial.

Comprehensive estate planning.

Effective estate planning encompasses more than just tax considerations. It involves ensuring your legacy, your business, and your assets are distributed according to your wishes. Protect your family. Provide for your loved ones with minimal legal hurdles.

For Floridians, the absence of state estate or death taxes offers a unique advantage. Federal tax law complexity and the nuances of owning assets in or having ties to other states underscore the importance of comprehensive estate planning. An experienced Florida estate planning attorney is invaluable for navigating these complexities and ensuring your estate plan is robust. That includes addressing both tax and non-tax considerations.

Law Offices of John Mangan, PA
Palm City – Stuart, FL

CALL: 1 (772) 218-0480

Do you question the need for attorney guidance with so many online resources? Because laws and regulations are complex, and because every person has a lot at risk, more people than ever are seeking professional guidance from an experienced, knowledgeable source. That helps explain the rapid growth of our firm. Whether you happened upon this website by accident or are one of the many referrals we receive from a nearly 15-year collection of satisfied clients, our staff can provide customized estate planning guidance for you. Call us. Our number: 1 (772) 218-0480

Written by: John Mangan, JD, MBA

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