When you die, your estate will be subject to taxes. One type of tax that may apply is an estate tax.
The state of Florida imposes an estate tax on certain estates. However, there are ways to avoid paying this tax. This blog post will discuss three methods of avoiding the Florida estate tax.
1. Use a trust.
One way to avoid paying the Florida estate tax is to use a trust. A trust is a legal entity that can own property and assets.
You can transfer ownership of your property and assets to the trust before you die. This means that the property and assets will not be included in your estate when you die. As a result, your heirs will not have to pay estate tax on them.
2. Give gifts during your lifetime.
Another way to avoid paying the Florida estate tax is to give gifts during your lifetime. You can give each of your heirs up to $10,000 per year without incurring any gift tax consequences. If you give more than $10,000 to any one heir in a year, you will have to file a gift tax return. However, the first $1 million of gifts that you give during your lifetime is exempt from gift tax.
3. Move out of state.
If you move out of state before you die, your estate will not be subject to the Florida estate tax because it will only apply to estates of Floridians who die while living in Florida. However, if you move back to Florida before you die, your estate will be subject to the estate tax again because it will apply to any Floridian who dies while living in Florida, regardless of how long they have been living in the state.
The best way to avoid paying the Florida estate tax is to use a trust or give gifts during your lifetime. If you move out of state before you die, your estate may also be exempt from this tax . Consult with an experienced attorney to discuss which method is best for you and your family.
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