Florida Estate Tax Planning Law Firm Puts Clients First

North Central Florida Attorneys Experienced in Estate Tax Planning

Estate taxes are a type of death tax, whereby taxes are imposed on the right to transfer or review property upon the property owner’s death. Estate tax is assessed on everything you own or have interest in at the time of a person’s death.

Except in special circumstances, most US citizens and Florida residents will not have to pay estate taxes upon death. The federal estate tax exemption currently is $5.43 million. Estates with a value less than this amount will generally not owe federal or State of Florida estate tax.

How are Estate Taxes Calculated?

Estate tax calculations begin with the gross estate, which includes all of the assets owned by the deceased or his estate, including all probate and non-probate assets.

The gross value of the estate is reduced by the following:

• Funeral expenses
• Estate administration expenses
• Claims against the estate
• Unpaid mortgages on, or any indebtedness in regard to, property where the value of the decedent’s interest is included in the value of the gross estate

The net figure after deductions is the adjusted gross estate. Once the marital deduction and charitable deductions are subtracted from the adjusted gross estate, the remainder is called the taxable estate. Then any taxable gifts are added to arrive at the tax base, which is multiplied by the appropriate tax rate. In order for certain transferred or gifted assets to remain out of the estate, they must pass the three year rule, which applies to transfers of life insurance by the insured and any gift tax paid out of pocket on gifts within three years of death.

If you have concerns that you might have an estate tax issue, don’t be alarmed. With proper planning, you can reduce or even eliminate estate taxes. Jon and Sue Dean have advised many people throughout Marion, Sumter, Citrus, and Lake counties on estate tax planning. Contact us online or call (352) 368-2800 to schedule your initial consultation with Jon or Sue Dean today.