Have you recently inherited a lot of wealth? If you are the heir of a deceased relative
and you name was mentioned in his or her you will inherit the wealth. But it is not as easy as you think. Inheriting property involves legal complexities. There are various tax laws that are going to affect your inheritance. But there is nothing to get confused even if tax law concerned with inheritance is intricate.
If you are wondering why Florida inheritance tax law is so difficult to comprehend, it is because the taxes are currently undergoing the "phase out" period. It means that the government is trying to get rid of the taxes over a certain period of time.
If you are wondering whether you at all need to pay the state any tax you should consult a lawyer. He can explain all the details to you and help you to understand if you owe inheritance tax to the state. As of now you can go through the following points that will give you a rough idea of whether you need to pay inheritance tax.
If you are the spouse of the deceased it is quite natural that you will inherit the property. A widow or a widower doesn't owe any inheritance tax to the state. They are not expected to pay the state for receiving a sum from their spouses' estate.
Florida inheritance law also doesn't ask for tax if the money has been received from a life insurance plan of the deceased person. The money that the heir receives as insurance amount is not considered to be taxable income.
As of 2008, people who have inherited property worth not more than 2 million dollars were not required to pay the inheritance tax. The limit was increased up to 3 million dollars in the year 2009 after the law revised under the Tax Reconciliation and Act of Economic Growth. The Act is expected to be repealed in 2010.
Inheritance tax can be applicable if you get the property before the person dies. Your relative can give you a part of his or her property before he or she dies. This property will be considered as part of inheritance but it can be taxable.
If you want to know more about Florida inheritance law consulting an experienced lawyer will be a wise decision.