There are two things you cannot avoid, death and taxes. Florida Probate deals with both. If you inherit over five million dollars you may owe estate taxes and you should be cautious about making sure they are paid. A woman from the United Kingdom learned that lesson the hard way after she was jailed for two years. Are you concerned you owe estate taxes? How can you know if you owe estate taxes?
- Theresa Bunn, 56 inherited one and a half million pounds (or over two million US dollars). She told the tax man that she had inherited only 285,000 pounds. She also lied about several gifts given to her prior to the death of a wealthy relative (her aunt).
- In Britain estate taxes are collected on an estate that is inherited and valued ar over325,000 pounds but if you are married you can jointly inherit up to double that or 650,000 pounds.
- Much like in Florida, only gifts within certain strict limits are exempt from inheritance tax.
- Apparently Ms. Bunn wont be enjoying her inheritance any time soon and she is also paying a penalty for the late taxes!
Did you inherit over five million dollars from a wealth relative, then you may owe an estate tax. Tax Court is no place you want to be and the government will get what they are due, with plenty of extra funds set aside for penalties.
- In Florida a Personal Representative is always represented by counsel, and if you are serving make sure to ask your attorney about tax obligations.
- If you are NOT the Personal Representative you have a right to independant counsel to advise you on your rights and obligations.
- Ignorance of your tax obligations is not an excuse, and if they have to wait until your dead to get it they still will. As I said in the beggining there are two things you cant avoid: death, and taxes.
Want to learn more about inheritance taxes, estate planning, will contests, guardianship and more? Check out our FAQ video library here.