Do You Have to Pay Estate Taxes? What Heirs Should Know

If you have recently inherited property or are preparing to pass on your assets, you may wonder whether estate taxes apply. The answer depends on the estate’s total value and its structure. While most families in Florida will never owe federal estate taxes, higher-value estates may trigger obligations that can reduce what beneficiaries ultimately receive.

At Aventus Law Group, we help clients in Winter Park, Orlando, and beyond understand when estate taxes apply and how careful planning can preserve family wealth. If you are preparing an estate or serving as an executor, reach out to us for trusted guidance through the legal and tax process.

Understanding the Federal Estate Tax

The federal estate tax is imposed on the transfer of property at death and covers assets such as real estate, investments, business interests, and retirement accounts. According to the Internal Revenue Service, estates with a total value below the federal exemption amount owe no estate tax. For 2025, that exemption is $13.99 million per individual, meaning that only estates exceeding that threshold are taxable. Married couples can protect up to $27.98 million by properly using both exemptions.

The portion of an estate that exceeds the exemption may be taxed at rates up to 40 percent. Deductions for mortgage interest, administrative costs, charitable donations, and property left to a surviving spouse can help reduce the taxable amount. An estate planning lawyer in Florida can help families and fiduciaries evaluate these deductions and ensure filings meet all IRS requirements.

How Florida Law Affects Heirs

Florida remains one of the few states with no state-level estate or inheritance tax. That means most Florida heirs will not owe additional state tax when inheriting assets. However, if the deceased owned property in another state that imposes its own estate or inheritance tax, that state’s rules may still apply.

This distinction makes Florida an advantageous place for retirees and business owners planning their estates. Still, federal reporting and valuation rules are detailed and must be followed carefully. Our firm helps clients prepare the necessary documentation to avoid unexpected tax exposure.

When Estate Taxes Become a Concern

Estate taxes generally affect only high-value estates, but certain types of assets can quickly push a family’s holdings beyond the exemption threshold. These often include business interests, commercial real estate, private equity, and investment portfolios. The valuation of these assets can significantly influence whether taxes apply.

Families with complex holdings often benefit from our estate planning attorney’s support, who can coordinate with accountants and appraisers to ensure assets are properly valued. Proper valuation and documentation help minimize the risk of IRS disputes or overpayment.

In addition, business owners should prepare for the eventual transfer of company interests. Without an estate plan, heirs may face liquidity problems if they must sell business assets to pay taxes. Structuring ownership and succession plans early can prevent this outcome.

Essential Considerations for Heirs

Even if the estate appears to be below the taxable threshold, heirs should keep several key points in mind:

• Lifetime gifts made by the decedent can reduce the available federal exemption, since the estate and gift taxes are unified.
• To preserve a spouse’s unused exemption, the executor must file IRS Form 706 within the required deadline.
• Estates involving property or investments outside the United States may trigger additional reporting requirements.

Understanding these details early allows heirs to manage responsibilities efficiently and avoid unnecessary delays in asset distribution.

Reducing Tax Exposure Through Proactive Planning

Thoughtful planning can significantly reduce estate tax exposure while ensuring assets pass smoothly to beneficiaries. Strategies may include establishing trusts, gifting assets during one’s lifetime, or coordinating charitable bequests. A qualified estate planning attorney in Florida can recommend legal and financial tools that reflect your family’s unique goals and risk tolerance.

At Aventus Law Group, our attorneys combine legal acumen with advanced tax and accounting insight. We help clients structure their estates, evaluate potential liabilities, and prepare IRS filings with precision. To learn more about our services in wills, trusts, probate, and tax matters, visit our practice areas page.

Preserving Your Legacy with Confidence

Estate taxes affect only a small percentage of families, yet for those impacted, the consequences can be significant. Proactive estate planning ensures that your wishes are honored and your heirs are protected from unnecessary financial burdens.

If you would like professional guidance tailored to your circumstances, our team at Aventus Law Group in Winter Park, Florida, is ready to assist. To learn more about the attorneys who can guide you through this process, visit our team page or contact us today. Our firm is committed to helping families and business owners protect what matters most through strategic legal and tax planning that stands the test of time.