You’re doing your estate planning, and you want to ensure that you pass as much of your estate as possible on to your heirs. That’s why you’re working so hard to plan in advance.
One major concern you have is paying estate taxes. You’ve moved around a lot during your life, and you know that some states collect a hefty tax after death. Is Florida one of those states?
It is not, and it has not been for more than a decade. You do not have to pay any estate taxes at the state level, regardless of the size of your estate.
It has not always been this way. All you have to do is look back at 2004 to find that Florida did have an estate tax. They often called it a “sponge tax” or a “pick-up tax.” That changed on Jan. 1, 2005, and now the state does not require you to pay anything.
That change put the estate tax laws a bit more in line with the rest of Florida’s tax laws. For instance, you probably know that Florida does not charge state-level income tax, but did you know that only seven states in the entire country have that policy? Florida is definitely in the minority in that regard, showing the attitude toward taxes that lawmakers have adopted and doing away with the estate tax embraced this approach.
It is crucial to know how the current laws impact your estate plan and to keep an eye on any potential changes in the future that may mean you need to make updates and changes.