Video Summary
Are there any tax implications when an estate is settled? The number one, is Florida has done away with estate taxes, and the federal government has raised the federal estate tax limitation in 2024 to above $13 million. So, there’s no estate tax implications in most estates in Florida. The personal representative is charged with filing a tax return for the estate for any income that it received. And so, the tax implications are, is that you deduct the administration costs from the income of the estate, and if there’s any income that’s been distributed out to the beneficiaries, they’ll receive K one and must pay income tax on it. One of the big benefits of inheriting property, however, is you get what they call a step up in basis and the property. If you inherit property or stock, and that you take the asset at the date of death value. And so, if the date of death value is a hundred thousand dollars and you later sell it for a hundred thousand dollars, you don’t have to recognize any gain. You don’t have to go back and determine how much the decedent paid for the property. If you have any questions, give me a call at (727) 847-2288.