Tampa Estate & Gift Taxation Attorney

Generally speaking, estate and gift taxes apply only to people with significant assets. Still, without careful planning, even a small estate can be subject to estate taxes. When an estate is heavily taxed, it is very detrimental to the beneficiaries and heirs of the estate. Additionally, there are changes made to the estate tax every year, sometimes quite drastically. If you want to protect your family from these consequences, our Tampa estate and gift taxation attorney can help you do it.

What are Estate and Gift Taxes?

In a way, gift and estate taxes are two different types of taxes. The gift tax applies to gifts you give throughout your lifetime. The estate tax is applied to the estate you leave behind.  Due to the fact that the federal government exempts a certain amount from taxation and that is a unified amount, gift and estate tax planning are typically considered together. Essentially, if gifts made during your lifetime and your estate’s value exceed the applicable exemption, the non-exempt value is subject to taxation.

Gift Taxes

Gifts have a maximum amount allowable, which is $14,000 per person every year. Married couples can gift twice that amount every year without negative tax impacts. Any gifts over the allotted amount by an individual or married couple must be reported to the Internal Revenue Service (IRS). The amount over the allotted amount is subject to taxation, although there are a few exceptions.

Interspousal gifts are not subject to taxation, nor are charitable gifts, even if these exceed the threshold. Other payments that could be classified as gifts otherwise are also exempt from the gift tax, even if they are valued over the allotted amount. These exceptions include paying for someone else’s school tuition, medical expenses, if the payments are made directly to the educational institution or medical provider. As such, making these payments can benefit your heirs while also helping you avoid the gift tax.

Estate Taxes

Florida does not have an estate tax, but some estates are still subject to the federal estate tax. Only estates of a certain value are taxed at the federal level, and the amount changes regularly. Like the gift tax, married couples can double the amount of their exempted estate tax. Any portion of the estate that exceeds the threshold is subject to the federal estate tax. This tax can be as high as 40 percent, so it is critical to plan carefully to avoid this negative impact on the estate.

Our Estate and Gift Taxation Attorney in Tampa Can Help You Plan for the Future

When creating an estate plan, there are many things to consider that can protect you and your family. At BBDG Law, our Tampa estate and gift taxation attorney can advise you of your options and create a comprehensive plan that will shield your assets so they can be distributed among your heirs and beneficiaries. Call us now at (813) 221-3759 or fill out our online form to schedule a consultation and to get the legal help you need.