Florida does not impose an estate tax on residents or an inheritance tax on beneficiaries (those receiving a decedent’s assets through wills, trusts, or gifts). Similarly, the federal government does not tax assets if they fall below the stated cap, which is currently more than $13 million for individuals and more than $25 million for couples. Individuals and couples whose wealth exceed these amounts should work with a seasoned estate planning attorney.
Determining the value of your assets and applying the cap is the basis for exploring various irrevocable trusts that can assume ownership of assets that exceed the cap, thus preserving them for your family instead of being taxed. Contact our Coral Gables estate tax planning lawyer now to determine what you need to do next.
Estate taxes are sometimes called “death taxes” because they result from an executor’s final accounting of an estate’s worth after the owner has died. Assets are anything that has value, from real estate and bank accounts to paintings and business holdings. As of 2024, the initial $13.61 million in assets for individuals or $25.84 million for married couples is not taxed – only the value of assets above those thresholds is taxed. For an estate of a married couple worth $14.61 million, only that last million that exceeds the $13.61 million cap will be taxed at 40 percent. The first $13.61 million does not get hit with the 40 percent tax.
However, unless Congress changes the law, the caps will revert back to $5 million in 2025. This means more estates would be subject to the tax.
Estate tax exemptions are subject to portability for spouses, which means if one spouse dies but their estate did not come close to the $13.61 million cap, the unused exemption balance can be added to the surviving spouse’s exemption. The result is that when the second spouse passes away, they have their own exemption plus the unused exemption of the spouse that died first. For example, if the first spouse dies leaving a $3.61 million estate to the surviving spouse, that spouse’s estate value grows by $3.61 million; but through portability the exemption grows also, to $23.61 million, because the surviving spouse received the unused exemption of the deceased spouse. Even if the surviving spouse’s estate is well below the threshold, it is presumed it will increase in value if they live many more years but would still be protected by the increased exemption.
The estate tax planning lawyers at the Law office of Ana M. Veliz have been part of the Coral Gables community for years. We care about our neighbors and their ability to preserve wealth for their loved ones.
Irrevocable trusts are a beneficial way to preserve assets and lower or escape the estate taxes. The grantor, which is the person creating the trust, transfers assets into it. Unless there is a court order, they cannot make changes afterward because the trust assumes ownership of the assets, thus removing taxable assets from the grantor’s estate. Some examples of asset protection irrevocable trusts are:
There are other customized plans that a Coral Gables estate tax planning lawyer can create for clients to maximize what their beneficiaries receive.
You are working hard to accumulate wealth, and the more you preserve for your loved ones, the more likely it is that they will reach adulthood on a solid financial footing. It is one of the greatest gifts you can give them.
We can help you deliver that gift by assessing your estate tax vulnerability and creating a plan to minimize the impact of the potential burden. Our Coral Gables estate tax planning lawyers protect family wealth in our community, and we look forward to helping you too.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917