When a loved one passes away, the last thing we want to worry about is taxes. However, understanding how estate taxes are handled in Florida is an important part of the probate process. Here are some key things to keep in mind:
The Basics of Estate Taxes in Florida
Florida does not have an estate tax, which means that the state does not impose a tax on the transfer of assets after someone passes away. However, the federal government does have an estate tax, which may be levied on larger estates.
Federal Estate Tax Exemptions and Limits
As of January 1, 2023, the federal estate tax exemption is $12.9 million per individual ($25.8 million for couples), which means that estates valued below that amount are not subject to federal estate taxes. If an estate is valued above that amount, the excess will be taxed at a rate of up to 40%.
Valuing and Appraising Estate Assets
One of the key steps in probate is valuing and appraising the assets of the estate. This can be a complex process, as it may involve real estate, investments, and personal property. It is important to work with a qualified appraiser to ensure that all assets are valued properly.
Deductions and Credits for Estate Taxes
There are a variety of deductions and credits that may be available to reduce the estate tax liability. For example, if the deceased person was married, their estate may be able to take advantage of the unlimited marital deduction. Other deductions may be available for charitable donations.
Work with an Experienced Florida Probate Attorney
Navigating the probate process can be challenging, especially when it comes to taxes. That's why it's important to work with an experienced probate attorney at Adrian Philip Thomas, P.A. who can provide guidance and support throughout the process. An attorney can help you understand the tax implications of the estate and ensure that all necessary steps are taken to minimize the tax liability.
Understanding how estate taxes are handled in Florida probate is an important part of the process. By working with a qualified probate attorney and taking advantage of available deductions and credits, you can help ensure that the tax liability of the estate is minimized. If you need assistance with probate or estate planning, contact Adrian Philip Thomas, P.A. today.
Contact us online or dial (954) 764-7273 to schedule a consultation and learn more about estate taxes.
