Taxes and estate planning

Are you concerned about the best way to handle your estate planning in Florida? Does the thought of paying large amounts of your estate out in taxes bother you? Your concerns and questions are shared by many other Floridians. There are different ways to manage and limit the tax liability of your estate and what is the best way for you to do this may well be different than the best way for your neighbor to do this.

U.S. News and World Report cautions people from believing that their retirement assets funded with pre-tax dollars are safe from additional taxation after they die. For example, if your adult child is the named beneficiary on your 401K account worth $250,000 at the time of your death, do not expect that he or she will receive the full $250,000 as it will be taxed.

If avoiding or minimizing taxation is a primary objective for you, there are different avenues for you to try. One could be establishing a trust and then gifting from that trust to someone else who is taxed at a lower rate than yourself. Any gifts from trusts are taxed based upon the recipient’s tax level, not yours. Gifting money while you are still alive is another way of bypassing post-death taxes for your estate or your heirs.

It is also important to have a will or trust in place in order to avoid the costs that can be associated with probate that then reduce the amount your heirs will receive even further. To learn more about tax concerns for your estate, please visit the taxes and beneficiaries page of our Florida estate planning website.



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