Seniors Can Save Money On Taxes By Retiring To Florida
If you are looking for an affordable place to retire, you probably will not find it. Yes, you can retire to a remote island somewhere, but it will cost a bundle to fly your family out there to visit you for the holidays, and the spotty Internet connection will leave you constantly worrying about your loved ones who are not only far away but also hard to reach. Prices have gotten so expensive that dollar stores have started to be honest with customers about the fact that they can no longer afford to cap their prices at one dollar. Meanwhile, cushy jobs are in short supply, and full-time gig workers must now compete for gigs with people who use gigs to supplement their income from their permanent jobs. The inheritance your children or your nieces and nephews will receive from you is a lifeline; it may be the only financial freebie they ever get. If you retire to Florida, you might still have to spend some of your retirement savings on your own expenses instead of just living on your and your spouse’s Social Security checks, but you will make it less expensive for your surviving family members to inherit from your estate. To find out more about making Florida your legal domicile after retirement, contact an Orlando estate planning lawyer.
All of the Sunshine and None of the Estate Tax or Inheritance Tax
Estate tax is money that the estate must pay to the IRS before it settles. It is calculated as a percentage of the value of the estate. Only the most valuable estates, the ones worth millions of dollars, must pay estate taxes. By contrast, inheritance taxes are obligations on the heirs when they inherit money from the estate. When a family must pay both inheritance taxes and estate taxes, the amount that the heirs inherit is considerably less than what the testator originally left for them.
Fortunately, we do not have to worry about that in Florida, because Florida does not have inheritance taxes or estate taxes. No matter how valuable the estate is, you do not have to pay taxes on money simply because someone is inheriting it. This does not mean that probate does not diminish the value of the estate, though. You must still file a final tax return on behalf of the decedent and pay any taxes that the decedent owed in his or her last year of life. You must also settle creditor claims if creditors seek repayment of debts from the estate. Therefore, estate planning can save you money. Making Florida your legal domicile is a start, but it is also worthwhile to transfer some of your property to non-probate assets.
Contact Gierach and Gierach About Estate Planning for Frugal Floridians
An estate planning lawyer can help you revise your estate plan to pay as little in taxes as possible during probate. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
floridarevenue.com/taxes/taxesfees/Pages/estate_tax.aspx
