When planning for the future, you want to provide your loved ones with support. It is important to consider how taxes might affect the inheritance you leave to your loved ones. What should you know about taxes?
Will your estate have to pay estate taxes?
Firstly, it’s important to note that Florida does not impose a state estate tax. However, if your estate is above a certain size, your estate may need to pay federal estate taxes. In 2025, the federal estate tax exemption is $13.99 million per individual. This can reduce the amount your beneficiaries receive.
Will your loved ones have to pay taxes on their inheritance?
Florida does not impose inheritance taxes, but beneficiaries might need to pay a federal capital gains tax of they sell property they inherit. When they inherit property, the “step-up in basis” rule applies. This rule adjusts the asset’s value to its market value at the time of the decedent’s death, rather than its original purchase price. If beneficiaries sell that asset, they will have to pay taxes on any increase in value that occurred after
What if you own property in multiple states?
While Florida does not have its own estate or inheritance taxes, it is essential to consider other state-specific regulations that may impact your estate planning. For example, if you own property in another state, that state’s tax laws could apply, potentially affecting your overall estate plan.
Can you plan for these tax issues?
To mitigate potential tax liabilities, many Floridians utilize trusts and other estate planning strategies. Consulting with an estate planning attorney can help you use tools like trusts to achieve your goals and maximize the inheritance your loved ones receive.
You can minimize the impact of taxes
While Florida residents are not subject to state estate or inheritance taxes, taxes could still impact the amount your loved ones receive after your passing. The right guidance can help you minimize the impact of taxes and ensure that your loved ones receive their inheritance according to your wishes.
