Video Summary
What are the tax implications for my heirs under my current estate plan? Well, if you are a Florida resident, whenever you pass away, the state of Florida has done away with the state taxes so that there’s no estate taxes due to the state of Florida. The federal government has raised the estate tax limitation to just under $14 million. So if your assets don’t equal $14 million, well there won’t be any federal estate tax. If you own real estate outside the state of Florida, that state may impose the estate tax on whatever the property is in that particular state. As far as income tax is that beneficiaries do not have to pay income tax on assets that they receive from the estate or trust as a result of your death. Under the Internal Revenue Code, you get what they call a step up basis for the date of death value of the property. By way of example, that if I purchased a property for $200,000 and 2000 and then I pass away in 2025 and the property is worth $400,000, my beneficiaries take the property for $400,000. That’s called a step up in basis. So if they would sell the property for $400,000, there would be no tax. If they sell it for more than the $400,000, the difference between the 400,000 what they sell it for would be long-term capital gains. If you have any questions concerning this, give me a call at (727) 847-2288.