TAX PLANNING

FLORIDA TAX BENEFITS

As a resident of Florida, you can take advantage of many benefits not offered in other states.  Florida has no personal income tax. Florida has no intangible tax, such as a tax on stocks, bonds or other intangible personal property.  Florida has no estate or gift tax.  Florida has limits on increase of property taxes for your residence.  Non-residents will be subject to much steeper property tax increases.  If you are debating whether to make Florida your primary residence, the tax savings are clear compared with states such high tax states as New York and New Jersey.

TRUSTS FOR TAX PLANNING  

There are a number of types of trusts both revocable and irrevocable, domestic and off shore, which would protect and preserve your assets from taxes.  This may include revocable trusts which can include a marital trust, family trust, generation skipping trust, or an irrevocable trust which can include a dynasty trust or life insurance trust.

PLANNED GIVING

What you have accumulated can either go to your loved ones, charity and/or the IRS. Good planning means you will only leave the IRS what is absolutely required, if anything at all. If you begin with lifetime giving to lower your estate, gifting of cash to charities will entitle you to an immediate tax deduction.  Gifting through your IRA will ensure you pay no income tax (up to $100,000) if you are over 70 ½ .   Gifting retirement accounts to charity at death will both avoid the income tax, capital gains tax, and estate tax.  This will allow you to leave gifts of the appreciated assets to family. Gifts to charities can be of cash, insurance, appreciated properties or securities, the portion of an asset (bargained sale), pension plan interests, and gifts of remainder interests”. Use of charity trusts, such as “charitable remainder trust” and “charitable remainder annuity trust” and “charitable lead trusts” can avoid taxes and leave assets for beneficiaries. The financial benefits can include income, capital gains, gift and estate tax relief, among others.

FAMILY LIMITED PARTNERSHIP

A family limited partnership is created with a limited partnership agreement and is used to reduce gift and estate taxes through discounting, split income to those in lower brackets, help others in family learn how to manage assets among other things. It is not recommended for those having simple estate plan needs or where the estate is largely comprised of securities.