Have you recently inherited a lot of wealth? If you are the heir of a deceased relative and your name is mentioned in it, you will inherit wealth. But it’s not as easy as you think. Inheriting property involves legal complexities. There are various tax laws that will affect your inheritance. But there is nothing to be confused about even if the tax laws relating to inheritance are complicated.
If you’re wondering why Florida’s inheritance tax laws are so hard to understand, it’s because the tax is currently going through a “phased write-off” period. This means that the government is trying to eliminate taxes over a period of time.
If you’re wondering whether you need to pay state taxes at all, you should consult a lawyer. He can explain all the details to you and help you understand if you owe the state inheritance taxes. As of now you can go through the following points which will give you a rough idea of whether you need to pay inheritance tax.
• If you are the spouse of the deceased, it is only natural that you inherit the property. A widow or widower does not owe inheritance taxes to the state. They are not expected to pay the state to receive some of their spouse’s property.
• Florida inheritance law also does not require taxes if money has been received from a deceased person’s life insurance plan. The money received by the heirs as insurance amount is not considered as taxable income.
• Starting in 2008, people who inherit assets of no more than $2 million are not required to pay inheritance tax. The limit was increased to $3 million in 2009 after the law was revised under the Tax Reconciliation and Economic Growth Act. The law is expected to be repealed in 2010.
• An inheritance tax may apply if you acquire the property before the person dies. Your relative can give you some of his property before he dies. This property will be considered part of the inheritance but may be taxed.
If you want to know more about Florida inheritance law consulting an experienced attorney would be a wise decision.