To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Is the estate you have to handle subject to estate taxes?

As the executor of an estate, you have a responsibility to the deceased party who named you as executor, the heirs and beneficiaries who will receive assets from the estate, and anyone with an outstanding debt owed by the deceased parties. In fact, failing to properly resolve someone's financial affairs is one of the riskiest mistakes an executor can make.

An executor has an obligation to resolve someone's outstanding financial issues during estate administration. If they fail to repay debts and instead distribute assets to beneficiaries with amounts still owed to private creditors or possibly taxing authorities, the executor could find themselves the focus of legal proceedings and financially responsible for those unpaid amounts.

Taxes, in particular, are important to resolve as early as possible during estate administration. You may already know that you have to file income taxes on behalf of the deceased. In addition to the tax liabilities of the testator as an individual, the estate itself could be subject to estate taxes.

Does Florida assess estate taxes?

It is possible for an estate to have tax liability at both the state and federal levels. Thankfully, Florida is not among the minority of states that collect estate taxes at the state level. However, those who died in Florida, as in any other state, will potentially have to pay federal estate taxes, provided that the total value of the estate exceeds the exemption limit currently in place.

When does the federal government start collecting state taxes?

The federal estate tax is progressive. That means that the more an estate's value exceeds the exempt amount for an estate, the higher the percentage of tax the federal government will levy against the estate. The maximum tax rate is up to 40%.

However, an estate has to be worth $11,580,000 before any estate tax applies. It is common practice for those with large estates to plan ahead to reduce the value of their estate, possibly with the creation of a trust, in order to limit tax liabilities. Verifying the value of the estate and ensuring that you pay the estate taxes as appropriate or necessary is a critical part of doing your job as the executor.

No Comments

Leave a comment
Comment Information

Request Your Free Telephone Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.


North Office
950 S. Winter Park Dr
Suite 290
Casselberry, FL 32707

Toll Free: 888-681-4389
Casselberry Law Office Map

South Office
14115 Town Loop Blvd #300
Orlando, FL 32837

Toll Free: 888-681-4389
Orlando Law Office Map

At Korshak & Associates, P.A. we love feedback from our clients. Please take a moment and tell us how we’re doing!

Review Us