Whether you are a lifelong resident of Florida or you wish to make the Sunshine State your new home post retirement, it is important that you understand the various taxes your estate beneficiaries will have to pay upon your passing. Fortunately, there is not much to understand, as Florida does not levy estate taxes, or many taxes for that matter.
A spendthrift trust is a trust over which the beneficiary does not have control. Rather, a trustee, which can be an asset management company or registered investment advisor, oversees the trust's funds and assets and distributes them in a controlled manner. The trustee assumes control over the trust once the creator has made the trust irrevocable or died. If you wish to create a trust for your Florida estate, consider creating a spendthrift trust.
The probate process can be challenging for a myriad of reasons, and those who are struggling with the recent loss of someone they love may be incredibly stressed out when it comes to managing the estate. For example, someone who is in charge of managing their loved one's estate may not be familiar with the process or fully aware of all of their responsibilities. Or, they could feel overwhelmed and may even be accused of wrongdoing. On the other hand, beneficiaries may also become upset with how the estate is being managed or how assets have been divided. These issues can be especially challenging when they result in a rivalry between siblings.
Estate administration can get complicated after the death of a loved one, especially if the deceased was your last remaining parent. You likely received an inheritance, which could include a monetary sum, as well as your parents' possessions. In fact, your parents may have had more stuff than you are prepared to deal with or want to have in your own home. You and other Florida residents in the same situation may want to consider holding an estate sale.
Even with tax cuts regularly in the news and media cycles, many Florida [BW1] residents fail to understand exactly how the changes will affect them and their estate, specifically in relation to the gift tax. A gift is considered a transfer of money to another person or party without anything in return, according to the Internal Revenue Service. These gifts are taxed at certain rates and with different limits, and those have recently changed.