Although some assets may not have to go through probate, they may nevertheless count toward an estate's valuation.
The American Tax Relief Act of 2012 allows for the portability of an applicable exclusion amount between two spouses. In other words, the portability election allows for transference of an unused estate tax exclusion of a spouse that has died to go to the surviving spouse.
In the past, for many Floridians, as well as people in other states across the nation, consideration for the possible federal estate tax liability was among the factors taken into account during their estate planning. While the changes to the federal estate tax exemptions have resulted in fewer people owing federal estate tax on inheritances, there still may be situations in which it is a good idea to plan for death taxes.
Readers in Miami-Dade, as well as in other localities throughout the U.S., may or may not be aware of the estate tax liability that may be imposed on a person’s estate before it can be disbursed to his or her beneficiaries. Legally married couples, however, are covered under a marital deduction from having to pay an estate tax on property or assets that were transferred to them by their spouse upon their death.
Readers in Miami-Dade are likely aware that assessing the value of a person’s assets is a large part of settling their estate after they die. Not only does the valuation process, in many cases, help to determine specific inheritance amounts, it also is the basis for deciding the estate tax liability.