Living Trust Florida

Estate taxes

Florida does not have its own estate tax or inheritance tax.

However, the federal government has an estate tax for individuals with large estates. Federal law allows assets to pass tax-free and gift-free to a spouse. This is called the unlimited marital deduction.

Estate taxes are due within nine (9) months of the deceased's passing.

For a person passing in 2009, estates over $3.5M were subject to the federal estate tax.

In 2010, there is no estate tax unless congress retroactively institues one. Some estate planners believe congress will extend the $3.5M estate tax limit indefinitely.

Otherwise, in 2011, the estate tax limit drops to $1M and amounts over $1M can be taxed over 50%.

THe net value of an estate is used to calculate estate taxes. Life insurance owned by the deceased is included in the value of the net estate.

Many of the trusts not discussed on this website are used specifically to address estate taxes. Disclaimer trusts, bypass trusts, A-B trusts and charitable trusts are a few examples of trusts used by married couples to minimize estate taxes.

Contact an attorney if your estate could be subject to estate taxes to determine the best estate planning method to minimize estate taxes.

Related estate planning documents and topics

• Resources
  
• Wills
  
• Financial power of attorneys
  
• Living wills
  
• Living trusts