Posted in Probate & Trust Administration,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

An estate tax return (Form 706) must be filed if the gross estate of a decedent, increased by the decedent’s adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the decedent’s death. The filing threshold for 2022 is $12,060,000. The threshold is adjusted for inflation and increases each year. An estate tax return also must be filed if the estate elects to transfer any deceased spousal unused exclusion (DSUE) amount to a surviving spouse, regardless of the size of the gross estate or amount of adjusted taxable gifts. The election to transfer a DSUE amount to a surviving spouse is known as the “portability” election.

Posted in Business & Corporate Law,Tax Law & IRS Defense

You have probably used payment apps like Venmo or Zelle to transfer money to a friend or make a payment to a business. Think of these payment apps as a faster way to transfer money when compared to prior formats such as PayPal or Stripe. Recently, there was a provision in the American Rescue Plan Act of 2021 that reduced the threshold for these type of transactions from $20,000 or 200 transactions to $600 without regard to the number of transactions, resulting in businesses receiving Form 1099-K’s (and the IRS also receiving the tax form). This new law allows for increased potential for businesses to be audited if they do not correctly report their earnings.

Posted in Probate & Trust Administration,Wills, Trusts & Estate Planning

Florida law provides restrictions on who can serve as personal representative (i.e. executor of an estate) when that person is not domiciled in or resident of Florida. A common question we receive when drafting a will for a client is whether the client’s step-sibling (or other step-relative) can serve as personal representative even though the step-sibling (or other step-relative) is not a resident of Florida.

Posted in Probate & Trust Administration,Wills, Trusts & Estate Planning

Many people believe that if they die without a will, the state (or government) gets their property.  While this is possible, it is very unlikely to occur.  So, what happens to your property if you die without a will?

When a person dies without a will, they die intestate (whereas dying with a will is called testate).  The Florida Statutes, under Part I of Chapter 732, titled Intestate Succession, presents a hierarchy of classes of people who are to inherit your “intestate estate” if you do not have a will.  That hierarchy is as follows:

Posted in Asset Protection,Probate & Trust Administration,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

Many people worry about filing or paying taxes to IRS or the federal government at death. The truth of the matter is that very few need to be concerned. According to IRS data, just 0.15% of decedents needed to file an estate tax return (Form 706) in 2019, and only 0.07% will pay any estate tax. That’s lower than the historical 1% to 2% share. Note there are some states that also have an estate or inheritance tax. Florida is not one of those states.

Posted in Business & Corporate Law,Tax Law & IRS Defense

Calendaring important IRS and tax authority deadlines can help you avoid stress. To avoid paying penalties and other tax consequences, calendar tax deadlines and plan for tax filings with your accountant and other members of your professional team. Below are few examples of important tax deadlines:

Posted in Business & Corporate Law

Has your business received cash or currency exceeding $10,000 in one transaction or related transactions within a year’s time from a client or customer? If so, the IRS requires you to file Form 8300 within 15 days of receiving the payment. If any additional payments are made during the course of a year, you must report those as well and file additional forms. Transactions that require Form 8300 include:

Posted in Asset Protection,Business & Corporate Law,Probate & Trust Administration,Wills, Trusts & Estate Planning

People need an estate plan if they want to ensure that their intentions will be honored after death with respect to the distribution of their assets. If you have an estate plan in place, does it also include a trust (sometimes called a living trust or a revocable trust)? If your current estate plan only consists of a last will and testament, you may want to consider also creating a trust.