When you create your estate plan in Florida, you have to prepare for everything. This not only includes ensuring all your assets are accounted for but also that you plan ahead for what happens after you die when it comes to taxes. While the state may assess estate taxes on your estate, the federal government does as well.
According to the IRS, taxes paid on any property transferred as part of your estate are estate taxes. These may not affect you as they are only for an estate worth $11,180,000 or more as of 2018. Most people will not have an estate that large. However, if you do, it is essential that you understand the tax implications.
The taxes levied are based on the fair market value of your estate. As with income taxes, there are deductions available. These may include mortgage payments, debts, charity, property given to your spouse, expenses for the estate administration and business interests. A unified credit is also applied to reduce the amount of taxes owed. The IRS basis the amount of tax owed on the net amount.
The estate must pay the federal estate taxes and any other estate taxes levied by other government tax agencies at the state level. As mentioned, most people will not have an estate large enough to have to pay federal taxes, but state estate tax laws may be different. It is essential that you discover what taxes your estate faces so you can prepare for that as part of your estate planning process. This information is for education and is not legal advice.