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Estate Tax Planning in Florida


Lake Mary, Winter Park, Longwood, and Maitland, Florida Estate Tax Planning Attorney

Although Florida has no estate tax, Florida residents are still subject to Federal gift and estate tax.  In 2012, each person has an applicable exclusion amount of $5,120,000 from gift and estate taxes, meaning that up to a total of $5,120,000 can be cumulatively given away during lifetime and upon death.  Thus, for a decedent dying in 2012, if total lifetime gifts and death transfers are under that figure, there is no estate tax.

In addition, each person can give away up to $13,000 per year to any number of individuals under what is known as the Annual Exclusion Gift.  Such gifts do not count toward the applicable exclusion amount so are completely gift and estate tax free.

Through the use of a properly crafted living trust, married couples can double up their applicable exclusion amount and give away a total of over $10,000,000.

However, the current applicable exclusion amount, which was established under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, will expire on December 31, 2012.  If congress fails to act to extend it, then the applicable exclusion amount will drop down to its 2001 lever of $1,000,000 per person.  Thus, if your estate is over $1,000,000 for a single person or $2,000,000 for a married couple, you may wish to consider making gifts this year in order to take advantage of the current law.

In additional to a properly crafted living trust, there are other ways to avoid or minimize estate taxes, such as the Irrevocable Life Insurance Trust.  For more information on estate tax and how to minimize or avoid them, please contact us. 

Florida Estate Planning Attorney, Vincent J. Profaci, P.A., assists Clients with Estate Planning, Probate & Trust Administration, Corporate Law and Business Succession Planning, Real Estate Transactions, Elder Law, Long Term Care Planning, Florida Medicaid, Medicaid Crisis Planning, Wills & Trusts, Estate Administration, Asset Protection, Estate Tax Planning, Charitable Planning, Special Needs Planning, and Guardianship, in the cities of Winter Park, Longwood, Lake Mary, Maitland, and Heathrow, Florida, and the surrounding areas.  

 

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