Why you should be a Florida resident, part I
There are many reasons why the State of Florida is a great state to declare your residency in besides the year round golfing. I meet with clients and prospective clients all the time who are residents of another state and talk to them about why they should consider becoming a Florida resident.
The first reason to become a Florida resident is that there is no Florida income, estate, inheritance, gift, intangibles or generation-skipping tax. Most states impose at least one of the above taxes on its residents. Real property and tangible personal property are generally subject to estate tax by the state in which the property is located. All other property such as bank and investment accounts are generally subject to the estate tax laws in place in the state the decedent resided in prior to their death.
An example that demonstrates this is Bob. Bob has a checking account in a Florida bank, has him home in Florida homesteaded, a car, an IRA and a vacation home in New York. Upon Bob’s death, his vacation home in New York would be subject to New York estate taxes but the rest of his property would pass estate tax free under Florida law. I won’t discuss the federal estate tax as that is a completely different animal.
Florida residents and others should consult with an estate planning and tax attorney to review the various documents and strategies to take full advantage of the tax benefits under Florida law.
