When planning for the future, it’s important to consider what will happen to your estate after your passing. If you’re like most people and you’ve worked hard for the money you earn, you may be shocked to learn that the government can take a considerable portion of your assets through estate taxes. However, with help from Tampa estate planning lawyers, you can help protect your assets and loved ones. Keep reading to learn more about these matters.
What Are Estate Taxes and How Do They Work?
Estate taxes are a form of taxation imposed on estates valued over a certain amount as a means of taxing property that will be transferred upon your death. These taxes can be imposed at the state and federal level. Generally, the federal tax only applies to estates valued at $13.99 million dollars. As such, if your estate is not valued at or over this amount, you won’t have to pay estate taxes.
It’s important to understand that an estate tax is different from an inheritance tax. The inheritance tax is imposed on beneficiaries, whereas the estate tax is levied against the estate itself.
You should note that as of 2025, Florida does not impose any estate or inheritance taxes. However, you may still be responsible for federal taxes, in the event your estate is valued over the exemption limit.
It’s also important to note that if you pass away and leave your entire estate to your spouse, there are no estate taxes. This is because there is an unlimited exemption for spouses.
Can I Reduce My Taxes?
If you are worried about your estate taxes, it’s important to understand your estate planning options to reduce the taxes. Generally, you’ll find that one option is to gift assets prior to your death to reduce the size and value of your estate. However, you must be mindful of the federal gift tax. As of 2025, you can gift up to $18,000 per recipient annually without incurring the gift tax. There is a lifetime gift tax of $13.61 million dollars that you must keep in mind when making tax-free transfers to your beneficiaries.
In addition to utilizing the gift tax to make transfers to reduce the size of your estate, you may want to create an irrevocable trust to house your assets. By creating an irrevocable trust, you are removing assets from your estate and transferring ownership to the trust. As such, these assets are not considered part of your estate. Not only do these assets reduce the size of your estate, but creating an irrevocable trust also offers protection from creditors in the event of a lawsuit and helps avoid probate after your passing.
As you can see, planning for the future is incredibly important to ensure your wishes are honored and that your loved ones are protected. That is why it’s in your best interest to connect with an experienced estate planning attorney with Tampa Law Group. Our dedicated firm understands how overwhelming these matters can be, which is why it’s our goal to help you make the most informed decision for your unique circumstances. When you need help, contact our team today.
