Every year, tax brackets and exemption amounts are adjusted to reflect cost-of-living increases. For individuals creating or updating their estate plan, recognizing and understanding the impact of such changes is vital for beneficiaries.
An experienced lawyer can promptly review your estate plan, as well as the estimated tax and exemption changes for 2019, and determine if you need to make any amendments to your existing plan. If you are thinking about setting up an estate plan in Florida, your attorney can explain how the tax brackets and exemption amounts may affect the legacy you intend to leave behind.
Estate tax exemption increase
Florida does not have an estate tax. However, depending on the size of your estate, you may be subject to the federal estate tax. In 2019, the Federal Unified Gift and Estate Tax Exemption will increase from $11.18 million to $11.4 million per person. This is the amount of money you can legally transfer to your heirs during your lifetime or at death without worrying about estate tax repercussions. If you are a married couple, with proper planning, you may leave twice this amount.
Gift tax exclusion
The annual federal gift tax exclusion was $15,000 in 2018 and will remain the same for 2019. This is the amount of money you can legally give to others in a single year without a deduction from your federal lifetime exemption. Married couples can gift twice the annual exclusion or $30,000 per person. If you have a large estate, consult with an experienced estate planning lawyer as soon as possible. A savvy attorney can swiftly evaluate your situation and explain options for reducing tax consequences in an easy to understand manner.
No inheritance or estate tax in Florida
As previously mentioned, Florida does not have an estate tax. Nor does it have an inheritance tax. This means that if you die in Florida and your estate is less than the federal exemption amount, your heirs do not need to worry about estate, inheritance or “death” taxes. Inherited retirement accounts are the exception. Income taxes are due as funds are withdrawn. Keep in mind, if you live in Florida, and inherit assets from someone who lives out-of-state, local state laws will still apply. For example, if you have a deceased relative in Pennsylvania, any inheritance they leave to you must first pass through the state’s inheritance and estate tax laws. No estate or inheritance tax doesn’t mean you don’t need to create an estate plan.Every person needs their own plan or their state of residence will create one for them.
Experience estate planners protect your assets
The Law Offices of Hoyt & Bryan works diligently to help you create the perfect estate plan for your family. For more information about estates in Central Florida, call (407) 977-8080 today or contact us online to speak with an experienced estate planning attorney.