Florida does not collect state estate and inheritance taxes, but there are federal estate taxes to which one might be subject. In 2018, the federal estate tax exemption is $11.2 million per individual. There are several ways one can plan their estate so as to avoid estate taxes. One of the first steps would be to schedule an appointment with the tax law and trust & estate attorneys of Bach, Jacobs & Byrne, P.A. to review and update your estate plan based on current tax law. Call us today at (941) 906-1231 to set up a consultation.
The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.
Federal estate taxes are now only applicable to individuals with a taxable estate exceeding $11.2 million and to married couples with a taxable estate exceeding $22.4 million. In 2025, the federal estate tax is set to revert back to the exclusion amounts applicable in 2017.
In Florida, there is no state inheritance tax, so persons with assets of up to $11.2 million or couples with assets of up to $22.4 million do not need to worry about the impact of death taxes on the inheritance they leave to their heirs. The “generation skipping tax” has now also been effectively eliminated for combined estates less than $22.4 million between husband and wife, so it is now possible to establish so-called “dynasty Trusts” in Florida without worrying about subsequent generations inheriting extra generation-skipping taxes.
Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.
