Is Florida A Tax-Free Paradise For Retirees?
There are plenty of things to fear in Florida. The Sunshine State has the largest alligator population in the U.S. It is also home to our nation’s only native population of crocodiles; the range of the American crocodile extends to the southernmost parts of Florida. Even if you are prudent enough to avoid crocodilians by staying on dry land, Florida has more lightning strike fatalities than any other state, and more hurricanes make landfall here than anywhere else in the United States. The willingness to resort to outrageous behavior for fame or notoriety has become a nationwide, if not worldwide, phenomenon, but Floridians are among the most enthusiastic and visible participants in this trend. If the thing you fear most is running out of money, then feast your anxieties on Florida. Not only will you find flashy vehicles that seem to be daring you to upgrade your ride, but Floridians of a certain age tend to spend so much money on their appearance that they appear to age in reverse. Even if you are committed to living within your means, Florida is plenty expensive, but one thing you do not have to fear here is taxes. Some of the taxes that, in other states, are constantly threatening to knock wealthy people out of the top one percent do not exist in Florida. To find out more about the taxes that the estates of Florida residents do not have to pay, contact a Tampa estate planning lawyer.
You Will Not Find Estate Taxes in Florida
The laws surrounding probate differ from one state to another. For example, each state has its own rules about how low the value of an estate must be for it to be exempt from probate. Likewise, some states charge estate taxes on estates that are above a certain value, usually several million dollars. The estate tax is a percentage of the value of the estate, and the percentage increases with the estate’s value.
Florida does not charge estate taxes, no matter how valuable your estate is. The only taxes you must pay before the estate can settle are any tax obligations associated with the decedent’s final tax return.
Florida Does Not Have Inheritance Taxes, Either
Inheritance taxes, like snow, are another annoyance that people in other states have to deal with, but which we are free from in Florida. In states that charge inheritance taxes, the heirs must pay a percentage of the money they inherit to the IRS as soon as they inherit it. In Florida, inherited money does not count as taxable income.
In other words, you have made probate less of a hassle simply by making Florida your legal domicile. To help your heirs save even more money, you can transfer some of your property to non-probate assets, where it will be safe from creditor claims.
Contact David Toback About Reducing the Tax Burden on Your Estate
A Central Florida estate planning lawyer can help you find money-saving strategies for your estate plan. Contact David Toback in Tampa, Florida to set up a consultation.
Source:
floridarevenue.com/taxes/taxesfees/Pages/estate_tax.aspx
