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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 36967
Experience:  Texas lawyer for 30 years in Estate law
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In 2010 the Death Tax was at zero percent. Last year it was

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In 2010 the Death Tax was at zero percent. Last year it was 35%. It looks like on next year the Death Tax will be at a permanent rate of 40%. What amount of the individual's estate is exempt from the 35% and 40% rates? Is there a legal way to avoid paying the Federal Death Tax? Does the state of Florida have a death tax? Although I have resided in Florida for the past 10 years, can my former resident state of New York claim that my estate owes a Death Tax too? What is the NY State Death Tax rate?
Thanks for your question and good morning.

New York taxes estates that have a value of over ! million dollars.So if you were a resident at the time of death or you owe property in NY at the time of death above the million dollars you would owe state taxes and a return would be due.

The way to avoid this, liquidate any NY real estate, or make a gift while alive here, or a trust that avoids probate.All of these are options to avoid estate taxes in NY.

Reference to NY..

http://www.tax.ny.gov/pit/estate/etidx.htm

Florida currently has no state estate tax.So if all your assets are here within the state the state has no tax due on it at all.

Reference

http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=29


The federal exclusion for 2013 is $5.25 million so unless you are over that no federal taxes would be due for this year at least.


Your options overall to avoid estate taxes include liquidating anything owned in NY, consider a living trust, or make large intervivos gifts to others while you are alive to lower your value of any remaining estate to avoid taxes.It has been my pleasure to assist you today.Thanks for letting me help you.If you have more follow up please just ask.Thanks again.I hope that you will be so kind as to leave a positive rating. If you do have any additional questions about my answer please click the "Continue Conversation Link" so I can provide you with a fully satisfactory answer. Please be aware that any rating of 1 or 2 is reflected as a negative rating and I receive no credit for my answers. This communication does not establish an attorney-client relationship.Information provided here is not legal advice. Rather it is simply general information.
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Customer: replied 3 years ago.
Does the $5.3 million Federal Tax Exclusion also apply to a Life Insurance Trust?
Customer: replied 3 years ago.
I just realizeed that I mixing apples and oranges. The Life Insurance Trust amounts are removed from my estate, correct?
Yes a life insurance trust would avoid any estate taxes here it is one of the big reasons that you would create an irrevocable life insurance trust.It would save you taxes in such a situation both state and federal estate taxes because it does not pass through an estate.

Thanks for letting me help today.
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Thanks for your recent estate law questions.If you have a new question please post it for Ray.I do appreciate your letting me help you.

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