ESTATE TAX FOR US CITIZENS

Orlando Homes For Sale
Phone
Menu
ESTATE TAX FOR US CITIZENS

ESTATE TAX FOR US CITIZENS

ESTATE TAX FOR US CITIZENS

It’s said that there are only two guarantees in life: death and taxes. With the estate tax law, life deals you both in a single blow. Estate tax is the tax collected on your estate if you die, before it transfers to your heirs. For an American citizen, any asset worth over 5 million dollars is taxable at a rate of between 35 and 40% of the home’s net value, meaning any part of the estate’s value exceeding the 5 million dollar cutoff. Below 5 million, the asset is not taxed.

The 5 million dollar exemption is far more generous for Americans than the exemption offered to foreigners, whose assets are taxed if they exceed just $60,000. Still, for Americans with particularly valuable estates, the estate tax can add considerable insult to injury, resulting in sizeable financial losses on top of the loss of a loved one.

But even if your estate is appraised above the 5 million dollar cutoff, there are ways to protect your assets, and your heirs, from this ruthless piece of legislation. For married homeowners, taking title with a bypass trust is usually the most efficient. Here’s what you need to know:

 

How to protect your assets from Estate Tax for US Citizens – Loss of Exemption

If spouses own an estate jointly and one spouse dies, the estate is not taxed as long as the other owner is still living. This can seem like a blessing at the time. However, upon the death of the first spouse, that owner’s individual 5 million dollar exemption will be voided, meaning that when the second spouse eventually passes away, only their own remaining exemption can be applied to the estate tax. This leaves a large chunk of the estate vulnerable to taxation. But taking title with a bypass trust can protect your estate, and the heirs to whom you bequeath it.

 

How to protect your assets from Estate Tax for US Citizens – Bypass Trust

By taking title with a bypass trust, when the first spouse passes away, their share of the estate is moved into a trust fund where it’s sheltered by their 5 million dollar exemption. Generally, the decedent’s interest in the estate can then be used as the surviving spouse pleases. When the surviving spouse passes away, their interest in the estate and the decedent’s interest are treated separately for tax purposes, and each interest is granted its own 5 million dollar exemption from estate taxation.

At the Orlando Homes For Sale, we believe your hard-earned assets should stay where they belong: in your family. Exorbitant estate taxation can cost your heirs hundreds of thousands, even millions, of dollars. But we’re here to help. After we’ve facilitated the purchase of your perfect home, our knowledgeable team can offer sound advice on how to plan your estate to protect your assets and heirs.

Available homes

10,443 Properties found in this filter
1/871
9508 WINDY RIDGE ROAD, WINDERMERE, FL 34786

Price

$30,000,000

Active
Active
Beds
6 beds
Baths
12 baths
SqFt
SqFt

MLS #: O5941190 | Single Family Residence

1000 10TH STREET, BOCA GRANDE, FL 33921

Price

$23,500,000

Active
Active
Beds
6 beds
Baths
6 baths
SqFt
SqFt

MLS #: D6115616 | Single Family Residence

15305 HWY 320, MICANOPY, FL 32667

Price

$19,900,000

Active
Active
Beds
5 beds
Baths
5 baths
SqFt
SqFt

MLS #: OM619987 | Single Family Residence

1309 VISTA DRIVE, SARASOTA, FL 34239

Price

$18,000,000

Active
Active
Beds
3 beds
Baths
4 baths
SqFt
SqFt

MLS #: A4491997 | Single Family Residence

2450 BRYAN LANE, TARPON SPRINGS, FL 34688

Price

$17,700,000

Active
Active
Beds
9 beds
Baths
11 baths
SqFt
SqFt

MLS #: T3204109 | Single Family Residence

9927 GIFFIN COURT, WINDERMERE, FL 34786

Price

$16,500,000

Active
Active
Beds
12 beds
Baths
11 baths
SqFt
SqFt

MLS #: O5926057 | Single Family Residence

6526 SURFSIDE BOULEVARD, APOLLO BEACH, FL 33572

Price

$15,000,000

Active
Active
Beds
5 beds
Baths
5 baths
SqFt
SqFt

MLS #: T3209787 | Single Family Residence

8218 SANDERLING ROAD, SARASOTA, FL 34242

Price

$14,000,000

Active
Active
Beds
6 beds
Baths
7 baths
SqFt
SqFt

MLS #: A4474535 | Single Family Residence

2621 DUNDEE STREET, TAMPA, FL 33629

Price

$14,000,000

Active
Active
Beds
8 beds
Baths
9 baths
SqFt
SqFt

MLS #: T3300835 | Single Family Residence

1486 HILLVIEW DRIVE, SARASOTA, FL 34239

Price

$13,950,000

Active
Active
Beds
4 beds
Baths
4 baths
SqFt
SqFt

MLS #: A4499907 | Single Family Residence

1000 GENIUS DRIVE, WINTER PARK, FL 32789

Price

$12,450,000

Active
Active
Beds
10 beds
Baths
10 baths
SqFt
SqFt

MLS #: O5937062 | Single Family Residence

1148 GRAND TRAVERSE PARKWAY, REUNION, FL 34747

Price

$11,500,000

Active
Active
Beds
15 beds
Baths
17 baths
SqFt
SqFt

MLS #: O5945274 | Single Family Residence

Subscribe to our newsletter

Keep up to date with the lastest news, trends,
communities, special deals and more!

Menu
Phone SMS WhatsApp Email