Florida is a retirement destination state for reasons beyond the natural beauty and incredible climate. There are many communities that cater to the needs of retired adults across the state and plenty of social opportunities. The laws in Florida are also friendly to retirees in many ways, ranging from laws that help deter elder abuse to beneficial tax laws.
If you intend to spend your golden years in Florida, that may mean that Florida probate laws will apply to your estate. Will you have to worry about estate taxes eating away at the resources that you want to pass on to the next generation of your family?
Florida does not levy an estate tax
The good news for those moving to or staying in Florida for their retirement is that under Florida probate laws, there is no state estate tax. There also is no state inheritance tax. However, inheritance taxes from other states may affect beneficiaries of Florida estates in some circumstances.
Additionally, testators might still need to worry about the federal estate taxes. If your estate will have a total value of $12,060,000 or more when you die, then you may need to plan for estate taxes at the federal level. The federal estate tax could cost as much as 40% of your estate’s total value if you don’t plan ahead to reduce you are estate tax obligations.
Trusts, strategic gifts and other estate planning solutions can help you limit how much of your legacy you lose to Uncle Sam. Learning more about the probate laws that govern Florida estates can help those adjusting their estate plans for a retirement in Florida.