Tampa Estate & Gift Taxation Attorney

In recent years there has been an ongoing political debate over federal estate and gift tax. In reality, these taxes will only ever apply to a small number of Florida estates. But if you do own substantial assets, you need to consider the possibility that your future estate will be subject to such taxes. This is where careful estate planning can save you–or more to the point, your family and other beneficiaries–thousands if not millions of dollars.

The rules governing gift and estate taxes are in a constant state of flux. So it is essential that you work with an experienced Tampa estate and gift taxation attorney who can keep you apprised of the current state of the law. Knudsen Law is a full-service Florida estate and probate firm that can review your current financial situation, advise you on the best legal strategies for minimizing potential estate and gift tax obligations, and help provide you and your family with peace of mind on this often-complicated subject.

How Federal Estate and Gift Taxes Work

The State of Florida eliminated its estate tax in 2004. So if you are a Florida resident, then you only need to concern yourself with potential federal estate and gift tax issues. Even then, there is a good chance that your estate will not be subject to either tax.

The federal estate tax is basically a levy on your right to transfer property at your death. It is often paired with the federal gift tax, which applies when you give someone money or property while you are still alive. The estate tax applies to anything you own or have a legal ownership interest in at the date of your death. This can include property that is typically excluded from your probate estate, such as a revocable living trust. Everything is included in your “gross estate,” which is liable for tax unless the total value falls below the federal estate tax exemption.

The exemption represents how much property you can transfer upon death without incurring estate tax liability. Congress typically changes the exemption amount each year. For persons who die in 2024, for instance, the exemption is $13.61 million. This election is effectively double for married couples. So if you die and leave all of your property to your spouse, their future estate can claim a $27.22 million exemption.

The federal gift tax exists largely to discourage people from simply giving away all of their property before they die to avoid the estate tax. But as with the estate tax, there are generous exclusions you can take advantage of to avoid gift tax liability. For instance, you may give as many people as you wish up to $18,000 per year (as of 2024) as a tax-free gift. There is also a lifetime gift tax exemption, which is equal to the current federal estate tax exemption of $13.61 million.

Reach Out to Our Tampa Estate & Gift Taxation Attorneys

If you have any concerns that the federal gift or estate tax may apply to your Florida estate, you should not delay in seeking qualified legal advice. The Tampa estate and gift taxation attorneys at Knudsen Law will be happy to answer your questions and assist you in preparing an appropriate estate plan. Contact us today at (727) 398-3600 to schedule a consultation.