12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

A Primer on Estate & Inheritance Taxes in Fort Myers, FL

A Primer on Estate & Inheritance Taxes in Fort Myers, FL


Me and my dad are the biggest promoters of an estate tax in the US. It's not a popular position.
 
- Bill Gates


When you die, you leave your home, your possessions, your money, and other things of monetary value to spouses, children, family members, friends, charity or religious institutions. The government wants its share. Some argue that estate taxes can provide for future generations. Others argue that is robs inter-generational businesses of the capital they need to keep growing.

Your estate may be subject to inheritance tax, estate tax, state and federal tax statutes, and a host of exemptions that can pass more of the estate to inheritors of your choosing.

What are the differences between Estate Taxes and Inheritance Taxes?

Let's start with estate tax. Your estate is the total of your possessions and debts left behind when you die. An executor, either named in the will or appointed by law, will pay off outstanding debts, cover funeral expenses, and administrative costs (e.g. executor's fees). If necessary, executors may liquidate property to pay taxes, debts, or fees. After federal and state estate taxes are paid, the remainder goes to the heirs. So, the estate tax is a tax on the total amount of the estate, after creditors are paid but before any heirs get their bequest. The tax is paid by the estate itself.

Inheritance tax occurs after the heirs receive their payouts. It is a tax on the amount received and is paid by the heir. Inheritance taxes are levied by the states. This means that in many cases an estate is taxed twice -- first by the federal estate tax, then by the state inheritance tax.

The estate includes cash on hand, bank accounts, financial assets (stocks, bond, mutual funds, etc.), real estate, automobiles, boats, art pieces or rare collections, personal property, debts owed to the estate, business interests, etc. An estate is made up of all of these things. An appraiser will determine the fair market value of everything to determine the taxable value of the estate.

Inheritance Tax Exemptions

For large estates, sophisticated estate planners will work with the family and utilize trusts, charitable donations, non-taxable gifts and other techniques to meet the family's needs and minimize the tax burden.

For small estates, there are exemptions are applied to the taxable amount before estate taxes are collected. Exemptions can be relation based and amount-based.


There is an exemption when the estate is passed from a deceased person to their US citizen spouse. It will not be subject to any federal estate tax. States that levy an estate tax generally follow the federal government's rules for this, as well. If the estate is passed to children, siblings or golfing buddies, the exemption doesn't apply.

Amount-based exemptions are $5.34 million for an individual, $10.68 million for a couple as of 2014. It is indexed for inflation, so it will probably grow over time.

State inheritance taxes vary a great deal and can make things much more complicated. There might be exemptions for some family members, or different tax rates depending on whether you are a spouse, a child or just a friend. Many states tie their inheritance tax directly to the federal estate tax and exemption rate. Some have much lower thresholds than the federal threshold.

There are a few other miscellaneous deductions, such as a mortgage, usually deducted from the estate's value before taxation. Family businesses and farms may be taxed at a lower rate. Inheritance taxes tend to be set up on a progressive scale, meaning as the value of the estate increases, the tax rate rises and the taxes increase exponentially.

 
Personalize & Print a Free FL Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free FL Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Fort Myers, FL
Eihausen Law Firm
13581 Eagle Ridge Dr
Fort Myers, FL 33912
(239) 690-9916
General Practice Attorneys, Legal Service Plans, Attorneys
Berthiaume Michelle
2551 4th St
Fort Myers, FL 33901
(239) 415-9907
General Practice Attorneys, Attorneys
Chappell Howard E
5237 Summerlin Commons Blvd, Suite 366
Fort Myers, FL 33907
(239) 337-9875
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Pilarski John L
6300 Corporate Ct # 103
Fort Myers, FL 33919
(239) 590-9864
Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, Estate Planning,
Duckwall Robert H
5237 Summerlin Commons Blvd
Fort Myers, FL 33907
(239) 939-9800
Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
Ringsmuth & Ringsmuth
2215 1st St
Fort Myers, FL 33901
(239) 244-9682
Attorneys, Sexual Harassment Attorneys, Criminal Law Attorneys
Agoston David
1415 Dean St
Fort Myers, FL 33901
(239) 337-9569
Family Law Attorneys, Attorneys, Legal Service Plans
Kevin F. Jursinski, PA
15701 S Tamiami Trl
Fort Myers, FL 33908
(239) 344-9547
Entertainment & Sports Law Attorneys,  Attorneys,  Federal Law Attorneys,  Civil Litigation & Trial
Wetter Steven H
1617 Hendry St # 213
Fort Myers, FL 33901
(239) 476-9531
Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys, Legal Service Plans
Brian L. Edwards, Esq.
2133 Winkler Avenue, Suite 310
Fort Myers, FL 33901
(239) 791-9463
Legal Service Plans, Criminal Law Attorneys, DUI & DWI Attorneys, Attorneys
Vaughn Robert L Atty
2080 Collier Ave
Fort Myers, FL 33901
(239) 936-9393
General Practice Attorneys, Attorneys
Vaughn Robert L
6371 Presidential Ct # 4
Fort Myers, FL 33919
(239) 936-9393
General Practice Attorneys, Attorneys
Aaron J O'Brien
1617 Hendry St Ste 314
Fort Myers, FL 33901
(239) 337-9355
Criminal Law Attorneys, Attorneys, Legal Service Plans
Allan T. Griffith
2100 McGregor Boulevard
Fort Myers, FL 33901
(239) 334-9199
Legal Service Plans, Bankruptcy Law Attorneys, Family Law Attorneys, Attorneys
Pittman Law Firm, P.L.
8211 College Pkwy #178
Fort Myers, FL 33919
(239) 243-9166
Personal Injury Law Attorneys, Civil Litigation & Trial Law Attorneys, Attorneys
Moran James M
7370 College Pkwy
Fort Myers, FL 33907
(239) 277-9000
Attorneys, Legal Service Plans
Aiken, O"halloran and Banyai
2257 Cleveland Ave
Fort Myers, FL 33901
(239) 334-8890
Criminal Law Attorneys, Attorneys, Legal Service Plans
Green Schoenfeld & Kyle LLP
1380 Royal Palm Square Blvd
Fort Myers, FL 33919
(239) 935-8882
Attorneys,  Federal Law Attorneys,  Business Law Attorneys,  Arbitration & Mediation Attorneys,  Com
Conant Jonathan
2022 Hendry St
Fort Myers, FL 33901
(239) 332-8855
Attorneys, Mediation Services, Arbitration Services
Barthel Cynthia
4575 Via Royale # 201
Fort Myers, FL 33919
(239) 936-8838
Family Law Attorneys, Attorneys, Legal Service Plans
Arnowitz Martin G PA
1625 Hendry St Ste 102
Fort Myers, FL 33901
(239) 332-8818
Accident & Property Damage Attorneys,  Attorneys,  Malpractice Law Attorneys,  Civil Litigation & Tr
Hagen Law Firm
6249 Presidential Ct
Fort Myers, FL 33919
(239) 935-8792
Attorneys, Commercial Law Attorneys
Anderson Brett R
14521 Grande Cay Cir
Fort Myers, FL 33908
(239) 728-8752
Family Law Attorneys
Pendas Lou
4244 Evans Ave # A
Fort Myers, FL 33901
(239) 245-8673
General Practice Attorneys, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US