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Serving South Florida
since
1982
Board Certified Elder Law
Attorney
By the Florida Bar and
National Elder Law Foundation
West
Broward
Fort
Lauderdale area
(954) 726-6602
Boynton
- Delray
(561) 496-0077
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Please call us for a free elder law report. |
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Florida Estate
Tax Planning
For a person dying
in 2003, the amount that a person can leave to heirs estate-tax-free is $1,000,000. This is called the
lifetime exemption and it
applies to gifts at death and gifts during life.
Any amount left in excess of $1,000,000 not
left to a spouse or charity (the unlimited marital or charitable
deduction) will be subject to federal estate taxes. The estate tax rate
begins at 37% and goes up as high as 55%.
Question: What can be done to avoid
paying estate taxes that does not incur attorney fees or require
giving money away?
Answer: NOTHING!
That's right! Once you are over the lifetime
exemption your future planning to limit estate taxes will require
the services of an expert. However, here are some basic estate tax
avoidance tools:
GIFTS: This one is easy! Each year
you can give away up to $10,000 per year ($20,000 to a couple) to
as many people as you wish. This includes relatives and non-relatives. The gift must be a completed gift with no strings
attached.
EDUCATIONAL OR MEDICAL EXPENSES:
Payment of education or medical expenses paid directly to the provider
or educational institution, not to the individual, does not reduce the $10,000 yearly exemption.
This provision for educational and medical expenses is unlimited (See
Fall 1999 newsletter)
CHARITIES: There is an unlimited
charitable deduction for any gifts made to qualifying charities.
MARITAL/ CREDIT SHELTER TRUSTS: It is
a misconception that if a person has a $1,000,000 lifetime exemption
that a married couple automatically has $2 million exemption. In order to take advantage
of both deductions a marital trust must be set up while both
spouses are alive. Otherwise, the deceased spouse's deduction
will be wasted.
LIFE INSURANCE: An irrevocable life
Insurance trust will not only save estate taxes but will also
carry out the desires of the decedent. Insurance proceeds are not
subject to probate, and if the policy is purchased by the trust,
the proceeds are not an asset of the decedent's estate. |
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West
Broward (Fort Lauderdale area)
Cinnamon Tree Plaza
Click here for directions
5701 N. Pine Island Rd, Suite 260
Tamarac, Florida
33321
Phone: (954) 726-6602
Fax: (954) 721-0910 |
Boynton
- Delray
Delray
Commons - SW Corner
Click here
for directions
2160
West Atlantic Avenue, 2nd Floor
Delray Beach, Florida 33445
Phone: (561) 496-0077
Fax: (954) 721-0910 |
Florida
Elder Law, Estate Planning &