Obama proposes tax hike on inherited property. What would this mean for your Florida inheritance?

Depending on the value of the assets you own or control when you die, the executor of your estate may have to pay federal estate taxes before your assets can be fully distributed to your loved ones, beneficiaries, and heirs.  Luckily, however, Florida imposes no separate estate tax.

Federal estate taxes are different from, and in addition to, Florida probate expenses.

• Federal estate taxes are expensive, typically 35-55% depending on the asset inherited.
• And they must be paid in cash by your estate, usually within nine months after you die.
• Since few estates have this kind of cash, estate assets often have to be liquidated.
• But if you plan ahead, you can reduce and even eliminate Federal estate taxes.

Tonight, President Obama outlined certain tax changes in his 2015 State of the Union Address.  One change in particular was highlighted by the Wall Street Journal on Sunday.

You may be asking, “Do I have to pay tax on property I inherit in Florida?” Or, “How much tax does the government take on my inheritance?” This change will affect certaininheritance taxes on your Florida estate inheritance. Specifically in you inherited property, or a house.  The tax hike affects property that was gifted in a will or through probate court, and may place a tax on certain property that was previously exempt.  Check with your Palm Beach probate attorney, or Riviera Beach estate planner, to see your exact responsibilities to the IRS.

See http://www.pankauskilawfirm.com/ for videos and information on Wills in Florida, Florida Trust Law, Estate Planning, and Estate Administration in Florida.