What You Need to Know About Inheritance Tax in Florida

Inheritance tax laws vary by state, and if you’re dealing with an estate in Florida, understanding how inheritance tax works here is important. Whether you’re planning your estate or preparing to inherit, knowing the facts about inheritance tax Florida helps protect your assets and beneficiaries.

Is There an Inheritance Tax in Florida?

Florida does not have a state inheritance tax. Instead, the state uses local transfer taxes in some situations, so heirs usually don’t have to pay inheritance tax to Florida when they receive an inheritance.

However, federal estate taxes or other taxes may still apply depending on the estate’s value.

What Is Inheritance Tax?

Inheritance tax is a tax some states charge on assets passed to heirs after someone’s death. It’s usually calculated based on the value of the property inherited and the beneficiary’s relationship to the deceased. Assets like money, real estate, and investments can be subject to this tax.

Since Florida doesn’t impose an inheritance tax, beneficiaries don’t pay this tax at the state level here.

How Does Florida Handle Inheritance Tax?

Florida relies on local transfer taxes rather than a state inheritance tax. This means that beneficiaries typically won’t owe inheritance taxes when receiving property in Florida. Still, it’s important to be aware of potential federal taxes or other fees that might affect your inheritance.

What Are the Exemptions in Florida?

Because there’s no inheritance tax in Florida, close relatives such as spouses, children, and parents aren’t taxed by the state on inherited assets.

That said, federal estate taxes could apply if the estate is large enough, so proper planning is key.

How Is Inheritance Tax Calculated?

Florida doesn’t calculate inheritance tax because the state doesn’t impose one. But federal estate tax and capital gains tax can affect what heirs owe. The amount depends on:

• Your relationship to the deceased

• The value of the inheritance

• The kind of assets inherited

Who Pays Inheritance Tax in Florida?

In states with inheritance tax, beneficiaries pay the tax. In Florida, since no state inheritance tax exists, heirs usually aren’t liable for inheritance tax here. However, they should be aware of any federal taxes or other costs.

Why Is Planning Important?

Even without a state inheritance tax, estate planning is essential. Working with an experienced attorney or CPA can help reduce taxes, avoid probate issues, and ensure your heirs receive their inheritance smoothly.

Regular updates to your estate plan and clear communication with beneficiaries help protect your legacy.

How Can an Attorney Assist You?

An estate attorney can help you:

• Understand federal tax responsibilities

• File necessary tax forms

• Plan strategies to reduce taxes

• Navigate probate and legal procedures

Having expert guidance makes the inheritance process easier and protects your interests.

Let Mary King Help with Inheritance Tax in Florida

At The Law Offices of Mary King, we have extensive experience helping clients understand and manage inheritance tax and estate planning in Florida. Contact us today to discuss how we can help safeguard your estate and support your heirs.