Forewarned is forearmed when it comes to estate taxes

Though changes in the law in the past decade have eliminated estate taxes for most, a closer look at your estate plan is still warranted if the value of your assets exceeds $11.2 million, you established an estate plan before 2018, or you plan to move from Florida to another state in the future. At The Law Offices of Gregory W. Kabel, P.A., Attorney Kabel’s more than 32 years of experience is an invaluable asset when addressing any of your estate tax planning needs. With his exclusive focus on probate and estate planning, he possesses unique knowledge and experience that ensures all potential pitfalls are managed skillfully.

How does the federal estate tax affect Floridians?

Florida levies no estate or inheritance taxes on a state level. However, your estate may still be impacted by these types of taxes on a federal level. More commonly referred to as estate or death taxes, these levies are really transfer taxes, payable when you transfer your assets to your beneficiaries or heirs, whether while you are still living or after your passing. Individually, these taxes are called gift taxes, estate taxes and generation-skipping transfer taxes (GSTT), and together referred to as the federal Unified Transfer Tax. In 2013, the federal government set an exemption for this tax at $11.2 million ($22.4 million for married couples), adjustable each year for inflation. Essentially, this means your estate will be subject to the federal estate tax, up to 40 percent, if it exceeds these amounts.

Note that the exemption combines the estate taxes and gift taxes. Therefore, you can use up some or all of your exemption during your lifetime via gifts. Although there does exist an annual gift tax exclusion of $15,000 which does not count against your lifetime exemption. If you are married, this amount is doubled. So, what does this mean to Floridians? Well, generally speaking, unless you own more than $11.2 million in assets or plan to move to another state that does have estate or inheritance taxes, you likely won’t need to worry too much about estate taxes.

Smart estate tax planning

If you have a large estate valued at over $11.2 million, get to an estate planning lawyer post haste. Without the right tools in place and with tax rates as high as 40 percent, your loved ones may need to sign over a substantial portion of their inheritance to Uncle Sam. There are other situations where smart estate planning is essential as well, such as:

• Relocating – Unlike Florida, there are still states that levy their own death taxes in addition to the federal unified transfer taxes. If you are a new Florida permanent resident, you want to include Domicile Planning as part of your comprehensive estate plan.
• Outdated estate plan – If you created an estate plan several years ago to evade the estate taxes that were levied on individuals with more than $1.5 million in assets, you need to have a lawyer review your plan to avoid any unwanted and expensive consequences. You may also be able to reap the benefits of additional tax savings under the new laws.
• Same sex couples – Whether you have married your same sex partner or not, with the changing landscape in marriage equality, it’s advisable to confer with a skilled estate planning lawyer who is experienced in dealing with the needs of the LGBTQ community to ensure your interests are being seen to in this and all estate planning areas.

Get sound, honest financial advice from leading Fort Lauderdale estate tax planning lawyer today

Don’t assume federal estate taxes won’t impact your loved ones. Get answers to all your estate tax planning questions from the experienced Fort Lauderdale estate planning attorney at The Law Offices of Gregory W. Kabel, P.A. Contact us by phone at 954-761-7770 or contact us online to schedule an appointment to discuss your estate. Serving Fort Lauderdale, Wilton Manors and all of Broward County.