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.
Estate taxes, or death taxes, are taxes imposed by the government on the estates of recently deceased persons. In states that do have estate taxes, the tax only kicks in on estates worth a certain amount, which vary from city to city. According to Smart Asset, Florida is one of 38 states that does not levy estate taxes. This is true regardless of an estate’s size. The state abolished these taxes in 2004.
In addition to not imposing an estate tax, Florida also does not impose an inheritance tax. An inheritance tax is one the government levies on money that a deceased passed to his or her heirs via a will, trust or gift.
Though Florida does not levy estate or inheritance taxes, your estate and gifts may be subject to federal taxes. If your estate is worth $11.8 million or more, your heirs would have to pay the federal estate tax. Likewise, if you gift a gift with a value of more than $15,000, the federal gift tax may apply to you as well.
The content shared in this post is not meant to serve as legal advice. It is for educational purposes only.