We’re pleased to announce that

Ellis Law Group has joined
Wiggin and Dana LLP

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For any questions,
please contact Seth Ellis.

Boca Raton Estate Tax Planning Attorney

BOCA RATON ESTATE TAX ATTORNEY ASSISTING FLORIDA INDIVIDUALS AND FAMILIES WITH ESTATE TAX MATTERS

Do you have questions about the taxes imposed on your estate or that of a loved one?  Are you unsure about your options for reducing taxes or maximizing estate tax benefits?  If so, an experienced Boca Raton estate tax attorney at Ellis Law Group can help you.  Our firm is dedicated to assisting clients with a wide range of estate planning matters, including those pertaining to taxes. Contact us today to discuss your options with a member of our firm.

WHAT IS AN ESTATE TAX?

All property is eventually subject to taxation at the state and federal levels. An estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own, or have certain interests in, on the date of your death. The estate tax is payable by your estate, typically before property is distributed to your beneficiaries.  

DOES FLORIDA HAVE ESTATE TAXES?

Florida has no estate tax. Florida repealed its own estate tax in 2004, when federal law stopped allowing state estate tax deductions. What that means is that regardless of the size of your Florida estate, your beneficiaries will never have to pay Florida state estate taxes on the Florida property they inherit. 

However, they may still be liable for paying federal estate taxes, and that can end up taking a hefty chunk out of their inheritance.

WHAT ARE FEDERAL ESTATE TAXES?

Floridians don’t have to worry about a state tax on property they inherit, but the same is not true for federal taxes. 

Federal estate taxes are typically expensive (the 2018 rate was 40%). The standards for determining the value of assets and the related tax liability change from year to year. Federal estate taxes must be evaluated and paid in cash within 9 months of your date of death. A federal estate tax return can be filed via federal Form 706 or 706NA. Sometimes the personal representative of the estate may need to complete Florida form DR-313 in order to remove Florida’s automatic tax lien.

OUR BOCA RATON ESTATE TAX ATTORNEY EXPLAINS IF THE ESTATE TAX APPLIES TO YOU

In 2020,  the IRS explains that an estate tax only applies if the assets of the deceased person are worth $11.58 million or more. First, your “gross estate” is determined using fair market value. Then certain deductions are applied and accounted for to determine your true taxable estate (these may include estate administration expenses and property passed to qualified charities, for example). The value of lifetime taxable gifts is added and the tax reduced by the available unified credit.

ABOUT FEDERAL ESTATE TAX EXEMPTIONS

There are a variety of advanced estate planning options, like  Family Limited Partnerships and Grantor Retained Annuity Trusts, that are designed to reduce estate taxes. These options are favorable because they allow you to maintain an income stream for life, which ofen alleviates the fear of running out of money before you die.

Working with a Boca Raton estate tax attorney allows you to determine a strategy that will both limit your overall estate tax burden and help preserve your wealth.

WHAT IS THE ESTATE TAX MARITAL DEDUCTION?

There is no federal estate tax when a person leaves all of their property to their legal spouse. The marital deduction (also called the unlimited marital deduction) is an estate preservation tool that essentially allows married couples to delay the payment of estate taxes upon the death of the first spouse. Upon the death of the second spouse, the property in the estate is subject to estate tax.

HOW A BOCA RATON ESTATE TAX ATTORNEY CAN HELP

Tax laws are constantly changing. For example, in 2018 The Tax Cuts and Jobs Act (the “Act”) took effect and significantly changed the landscape of trust and estate taxation by  doubling the federal estate and gift tax exemption.

Utilizing a professional to help limit your tax liability ensures you are taking full advantage of the most recent laws. Our Boca Raton estate tax lawyers identify and analyze new laws in order to help clients take advantage of opportunities; we help clients modify existing plans to obtain the most favorable tax benefit and work with clients to minimize income, gift, estate and generation-skipping taxes through a range of tax-planning strategies.

CONTACT OUR ESTATE PLANNING LAW FIRM FOR ALL YOUR ESTATE TAX NEEDS

If you have questions or concerns regarding tax-related matters for your estate, an Ellis Law Group lawyer can address them.  Our firm is dedicated to protecting the rights and best interests of our clients and will help you establish a plan of action that reduces the taxes on your estate as much as possible.  To speak with an experienced Boca Raton estate tax attorney today, contact our firm by phone at  561-910-7500 or contact us online

 

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