What is estate tax?

Estate tax is a kind of property tax imposed by the state of Florida on the estate of a deceased person. It is collected from the estate’s beneficiaries and is used to pay off the taxes owed by the deceased person. Estate tax applies when the fair market value of the estate is greater than the state’s exemption limit. The amount of estate tax owed depends on the total value of the estate. The state of Florida has a progressive estate tax rate range that increases as the taxable amount increases. The rate for estates valued up to $5 million is 0%, but for estates valued above $10 million, the rate is 4%. In Florida, the estate is responsible for paying the taxes owed from the estate. Beneficiaries of the estate are not personally responsible for paying the estate taxes, but they can use their share of the estate to pay it off. In addition to estate tax, there may be federal estate tax imposed on the estate. The federal estate tax rate is much higher than the state rate and follows a different exemption limit. The federal exemption limit is currently up to $11.58 million per person. Estate taxes can be a complicated and confusing topic. It is important to consult with a trust and estate lawyer in Florida to determine what taxes are owed and to find out what steps need to be taken to properly settle the estate.

Related FAQs

What is a pour-over will?
What is a spendthrift trust?
What is a generation-skipping trust?
What are the benefits of estate planning?
What is an irrevocable trust?
What is a trust distribution?
What is a revocable living trust?
What is a special needs trust?
What is an executor?
What is a trustee?

What is estate tax?

Related FAQs

Related Blog Posts