As Florida resident who is also the recipient of an estate, you will need to handle the estate taxes. You may be wondering what taxes, if any, you are personally responsible for covering. Matters of estate taxes can be quite complex, after all.
FindLaw breaks estate taxes down into the taxes that will be paid by you, and ones that will be paid by the estate. Some states have inheritance tax laws. The inheritance tax is what you, the recipient of the state, will be paying. However, exemptions to this tax exist. Additionally, the rates can possibly vary depending on who inherited the property. For example, a spouse will typically have a lower rate. It should also be noted that inheritance taxes are being phased out in many states.
On the other hand, state death or estate taxes are typically covered by the estate itself. The rate can once again vary depending on who receives the property. It typically favors spouses or direct relatives as opposed to distant relatives. Like inheritance taxes, some states are also phasing this out.
Finally, there are pickup taxes. This occurs when the tax is filed, but the money is pulled out of what the estate is already paying to the IRS. This often is the case even in states with inheritance or estate taxes. This allows the recipient of an estate to not have to pay more than what the government is already receiving.
Due to the complex nature of tax laws and the potential severe penalties associated with filing incorrectly, you may want to seek out an attorney’s help during this process.