What is the current estate tax exemption rate?
Some states charge a tax on an estate and others do not. While Florida is a state that does not charge taxes on an estate, you may still owe taxes to the federal government. However, depending on how much your estate is worth, you might not have to pay any estate taxes to the federal government at all.
What is the current estate tax exemption?
The Tax Cuts and Jobs Act (TCJA) of 2017 doubled the federal estate tax exemption to $11.18 million for single people and $22.36 million for married couples. These measures are to remain in effect through 2025, although it is possible the laws could change before then. However, as of 2021, the TCJA estate tax exemption rule is still in effect.
Estates that are worth more than $11.8 million for singles or $23.6 million for married couples are subject to a steep tax rate with a top of 40%.
Please refer to this chart from SmartAsset to see what your estate might owe in taxes to the federal government if it does not qualify for exemption.
Talk to a ProVise CFP® professional about your estate planning strategy
If you want to make sure your loved ones are cared for and your assets are distributed according to your will, you may want to establish an estate plan. However, estate planning is not a simple process. There is a lot to navigate in the financial and legal landscapes, but with the right professionals by your side, you can reach your goals and be at peace knowing your family will be cared for when you pass away or are incapacitated.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about your estate planning strategy? Contact ProVise today to schedule a complimentary consultation.