Understanding Estate Taxes

Estate taxes can cut into inherited wealth. Luckily, Florida does not have a state estate tax—although the federal government does.

If you own property in other states, your property may be subject to other state estate taxes—and, of course, the federal estate tax. Here is what you need to know about estate taxes:

The federal estate tax

If you have an estate worth over $12.06 million, it will be subject to the federal estate tax. Anything under $12.06 million, in Florida, will not be taxed. The estate tax is assessed on the fair market value of the assets. In other words, the tax is calculated based on what the assets are worth as of the date of death, not the value at the time of purchase.

The estate tax threshold is doubled for married couples: you would have to have an estate over $24.12 million before it is taxed by the federal government. Above that threshold, tax rates can be as high as 40 percent.

In the end, working with a skilled estate planning attorney can help you maximize your assets for your heirs. Call the experienced estate planning lawyers at Baumann Kangas Estate Law in Tampa, FL today. We can help you determine how to manage your wealth and estate plan.