Key Considerations When You Own Property in More Than Florida

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What are “death taxes”?  They are estate taxes, usually referred to as “death taxes” and they apply to the transfer of property at death. In regard to the federal government, it imposes estate taxes on estates exceeding certain thresholds. However, in regard to the state-level estate and inheritance taxes, it varies significantly across the country. In the context of state-specific considerations, the state of Florida presents a scenario which is unique. We want to share what that uniqueness is. 

That uniqueness is that in Florida there are no estate or death taxes.  In fact, Florida is one of only a handful of states that does not impose its own estate or death taxes. For many current and new residents of Florida this fact is a relief and from a tax perspective it can simplify their estate planning. However, this does not mean Floridians can afford to overlook the broader spectrum of estate planning and tax considerations.  As Florida estate planning attorneys working with our clients, we have some key considerations to share with you, as why Floridians still need to be know about taxes, especially if they own property outside the state of Florida:

  • Know that when it comes to federal estate taxes, they still apply. Even with Florida’s stance, the federal estate tax remains a concern for estates that exceed the federal exemption threshold. This requires strategic planning to mitigate potential federal tax liabilities.
  • Know about and be aware of taxes on your property in other states. Floridians who own property in other states need to be aware that the estate or inheritance tax laws of those states could affect their estate planning. When you own property in a state that levies an estate or inheritance tax, this requires careful cross-jurisdictional planning with your experienced Florida estate planning attorney.
  • Know and anticipate legislative changes. Remember, tax laws are subject to change, both at the federal level and in other states where you may have property. This may happen quickly. Therefore, a proactive approach to estate planning, with a keen eye on potential legislative developments, remains crucial.

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

There is a unique advantage for Floridians in regard to the absence of state estate or death taxes. However, the complexities of federal tax laws and the nuances of owning property in or having ties to other states underscores the importance of good comprehensive estate planning. Choosing to work with an experienced Florida estate planning attorney is very important for navigating these complexities and ensuring your estate plan is robust, addressing both tax and non-tax considerations.
We know this article raises more questions than it answers. Our firm is here to support you now and available to answer your questions.  No matter where you are in life’s journey, we can help. The most important thing is to protect yourself and those you love.  Whether you need to update your estate plan, are preparing for future long-term care needs, or have a loved one entering or already in a nursing home, we are ready to assist you. We have three convenient locations and are ready to serve the communities around Highlands and Polk County, Florida. Take your first step by contacting us today.

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