Are you a non-resident who is investing in West Palm Beach real estate? Did you know that inheritance taxes may suck up around forty percent (40%) of whatever you make on your investment if you die unexpectedly? West Palm Beach probate litigators know how to use commercial corporate structures and other business entities to insulate you from high tax liabilities.
Inheritance Tax Exemption
- The inheritance (estate) tax does not hit that hard for most of us living in West Palm Beach.
- Your first 5.43 million will be exempt and that doubles to 10.86 million if you are filing jointly.
- The truth is that for a lot of people that is plenty of exemption to be safe.
- It is important to attempt total exemption do you know why?
- Currently the Federal Inheritance or Estate tax is up to forty percent!
- Can you imagine losing forty percent of an inheritance to Uncle Sam?
- Not a cent of that is from West Palm Beach or the State of Florida, it is all Federal.
- Want to know how this can get even crazier?
- If you are not a U.S. resident or citizen your West Palm Beach investment property could be susceptible to a much higher tax liability.
- For those investing from outside the United States the tax rate remains the same but what about the exemption?
- Only the first $60 thousand is exempt if you are not a citizen or U.S. resident.
- In other words almost all of your investment is going to be subject to the inheritance tax.
- What can you do?
Estate and Tax Planning in West Palm Beach
- Experienced West Palm Beach probate litigators do a lot more than just draft wills and trusts.
- Estate planning includes tax planning.
- If you are worried about being subjected to high inheritance tax given your status in this country, there are solutions.
- Offshore companies can act as a holding company and own local LLCs that manage and own property.
- This may be just the way to avoid that humongous tax liability.
- If you are unsure about how your current estate plan works for tax purposes you need to talk to a trusted and experienced Palm Beach probate attorney.
- Often times West Palm Beach investors rely on the advice of realtors who are not attorneys for tax advice that ends up being flat wrong.
- It might be too late!
Want to learn more about estate and tax planning as an out of country investor?