Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Out-of-state inheritance and estate taxes

Many families are spread across the country these days. This leads to a unique set of issues with interstate transfers of estate property. Florida does not collect death taxes, but other states may do so.

Depending on the value of an estate, inheritors might need to use the tax totals from other jurisdictions for further calculations. Accurate calculation is necessary to avoid potential conflict with the IRS. The good news is that relatively few states have inheritance or estate taxes. 

Tax law is complex: It is made up of federal and local codes that change from one year to the next. According to The Tax Foundation, there are six states that levy inheritance taxes, and 12 that have an estate tax. Among these are some of the most populous and wealthy:

  • Illinois
  • New York
  • Maryland / Washington D.C. 
  • Hawaii

When Florida residents pass away, the IRS would need information about the taxes paid on and the value of both local and out-of-state holdings. The Florida Statutes outline the process of calculating federal estate value. Other states have various rules on these taxes, so it is often necessary to review the applicable code and case law to ensure that the inheritance charges are valid.

Luckily, most people need only worry about paying estate tax in other states, rather than determining to what extent out-of-state taxes paid diminish the overall burden. It bears mentioning that federal tax issues are unlikely to concern most Floridians. This is because the federal tax exemption is quite high, and also because people often make efforts to reduce estate value -- via trusts, for example.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Aventura, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions