Estate Tax
A comprehensive estate plan will ensure that you and your family are protected and provided for in the event of your incapacity or death. To that end, one of the primary goals in creating your estate plan should focus on protecting your assets from unnecessary and costly estate taxes. You don’t want to work hard all of your life only to have your family lose a considerable amount of your estate to the government.
While Florida has no estate tax, the Federal estate tax is something that everyone should be aware of. Of course the goal of every estate plan is to eliminate the Federal estate and gift tax altogether so that your entire estate may pass to your heirs as you intended. But even if these taxes cannot be avoided entirely, they can be reduced dramatically with proper planning.
Your estate for federal estate and gift tax purposes consists of virtually everything you own. While not an exhaustive list, the following assets are included in your taxable estate:
- All of your cash accounts (certificate of deposits, money market accounts, checking and savings accounts)
- Stocks, bonds, brokerage accounts, mutual funds, treasury bills, notes and bonds
- All of the real estate that you own
- IRA, 401(k), 403(b), Thrift Savings Plans and other “qualified retirement plans”
- Annuity contracts
- Life Insurance Policies (with some limited exceptions)
- Tangible property (furniture, jewelry, works of art, cars, and boats)
The above list applies not only to assets owned solely in your name, but also assets owned jointly by you and another person, including your spouse. It is also important to note that your assets are not static. You should consider that your taxable estate today will not look like the taxable estate you possess when you pass away. Therefore, it is our goal in developing your estate plan to provide for the many contingencies that could and may occur.