If your loved one died recently and you find yourself in charge of their estate, it is essential to have a clear understanding of your responsibilities. Estate administration can become quite complex, especially if an estate plan involves significant assets. As someone who oversees an estate, you could have numerous duties, including the possibility of filing an estate tax return and paying taxes.
It is vital to familiarize yourself with estate taxes and go over different issues at the state and federal level.
Important estate tax issues to go over
According to the Florida Department of Revenue, Florida got rid of estate taxes in 2005 due to changes at the federal level. That said, Florida places an automatic estate tax lien on some Florida estates, and some personal representatives have to fill out paperwork in order to remove the lien.
Although no estate tax is due at the state level for decedents who passed away after 2005, it is important to keep in mind that paying federal estate taxes are necessary, in some instances.
Reviewing federal estate taxes
While Florida does not collect estate taxes, the Internal Revenue Service reports that estate taxes kick in for Gross Estates worth $12,060,000 or more in 2022. If you are in charge of an estate with significant assets, it is pivotal to carefully calculate the Gross Estate and determine whether filing a federal estate tax return is necessary. Moreover, make sure you carefully handle any issues related to estate taxes correctly, from filing paperwork with the state of Florida to filing and paying federal estate taxes.