Orlando Unified Tax Attorney
The unified tax goes by several names, but it relates to estate and gift taxes. A unified tax credit is the maximum amount of assets you are allowed to gift another party without the risk of owing estate, gift, or generation-skipping transfer taxes. Understanding estate and gift taxes can be complicated, which is why it’s essential to speak with an experienced Orlando unified tax attorney who can explain what limits apply in your particular situation.
You do not want to put yourself in a situation where you put your estate’s assets at risk or leave your family owing a significant amount of taxes that they cannot pay. At the law office of Ronald Cutler, P.A., we specialize in tax and IRS matters. If you have questions about estate taxes or any other tax type, contact our office to schedule a consultation.
What are Estate Taxes?
A federal estate tax is levied on the property you transfer upon death through a will or intestate succession laws. Many states don’t collect taxes on estates, but the federal government does in cases where your estate is over a specific value.
There is no inheritance tax in Florida, but other states do have it. That means you could run into issues if you own property in multiple states or move to Florida. Inheritance tax is something that will be taxed to the heirs once they receive the assets. Estate taxes come out of the estate and are paid before the distribution of any assets.
Federal Gift Taxes
Gift tax could be owed on the transfer of property during your lifetime any time you make a taxable gift. This tax is not limited to probate only. The IRS collects gift tax under the “unified” estate and gift tax. Gifting assets is a very misunderstood process, and some people find it intimidating. Utilizing this tax benefit can be a smart way to lower your overall estate value, when done correctly. If you need to file a gift tax return, it’s imperative to speak with an experienced Orlando tax attorney. Gift tax returns can be challenging and convoluted. It’s easy to make a mistake that could cause problems down the line.
What is the Unified Tax Credit?
The unified tax credit is available to each person. There is an annual exclusion limit amount, which can change every year or so. For 2020, the amount is $15,000. The overall estate and gift tax exemption is $11.58 million for 2020, increasing from 2019. That basically means that a single taxpayer could gift up to $11.58 million to friends or family without tax liability. If you are a married couple filing jointly, the annual limit would be $30,000, and the lifetime limit would be $23.16 million.
Contact an Orlando Tax & IRS Lawyer Today
If you need assistance with federal estate and gift taxes or the unified tax credit, don’t attempt to handle it yourself. Let our experienced Orlando IRS and tax lawyers help. Contact the law office of Ronald Cutler, P.A. today to schedule an initial consultation. With decades of experience handling tax-related matters, we can help you make sound financial decisions while maximizing all applicable tax benefits.