J. Kelly Kennedy, Attorney/CPA, PLLC

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Inheritance tax a factor after receiving loved one's FL estate

After a loved one's death, there are many steps that often need accomplishing. Whether their death was sudden or expected, loved ones closest to the deceased usually need to plan a funeral. When the immediate obligations of the funeral are over, it is time to think about what to do next. If a loved one left a will with a potential inheritance plan, this is likely the next place to turn.

Regardless of whether or not an inheritance plan was explicitly set out for family members after a loved one's death, there are often assets and other items that need tending to. Property, valuables, and money market accounts are all examples of assets that need be recognized by the family so that they can be distributed to beneficiaries accordingly. It may be important to acknowledge any liabilities that also existed prior to a loved one's death, as they can certainly affect an inheritance.

Those Floridians who inherit an estate often have to confront inheritance taxes. Florida state tax and federal taxes are just two that could affect a new inheritance. These taxes can be difficult to get around and will likely need to be paid. Sometimes the inheritance itself covers the taxes and other times there is a tax assigned to the receiver of the estate. One needs to be aware of these taxes as there could be additional fees and penalties if estate taxes are left unpaid.

Each person's will or estate has special perks and challenges. Hopefully, the loved one met with a professional to discuss the day when their estate would no longer belong to them. This usually makes the process much easier for loved ones, saving time and money. Those who wish to learn more about estate planning and how taxes may affect them should consider contacting a legal professional.

Source: FindLaw, "State Laws: Estate Taxes," accessed Sep. 12, 2016

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