Can you give an inheritance before you actually die?
Does an Advancement let you give an inheritance before you actually die?
Many times an opportunity presents itself in which an individual may want to give an inheritance before they actually pass away. Legally, this is possible, and it is called an advancement. This advancement concept is that you give the gift during your life, so they will not receive it again when you pass away.
How do I give an inheritance advancement?
For example, lets say a Father gives $75,000 to his daughter to pay for college tuition. Would this be deducted from the inheritance amount given to the daughter at death? In Florida, this would not count as an advancement.
In order for an inheritance advancement to be valid, a writing must be made by the person giving the amount, which says that they intent to give less later (upon their death), and that you will receive this amount of money now and receive less later upon inheritance.
How is an advancement valued?
An inheritance advancement is valued at the time the person receives the advancement. Thus, if the person is receiving cash, they would get use this money right away, and this amount would be subtracted from their inheritance at a later date.
However, some questions arise in situations when a gift is made during a person’s life, but it cannot be used until the person who gives the gift passes a way. In this case, the value of the advancement at the donor’s death would be used.
Does Florida Impose a State Tax on Inheritances?
Residents in Florida who are receiving an inheritance do not need to pay an inheritance tax. An inheritance tax is a tax which imposes a tax on the person inheriting property or money. Right now, only six states impose an inheritance tax, and Florida is not one of them.
However, Floridians should worry about a death tax. This is a federal estate tax. However, the estate of the person who has passed away must pay this tax. This tax is not paid by the party who receives any proceeds from the estate. Currently, there is a $5 million exemption, so only those with large estates must pay this tax.
Do I have a right to refuse a gift?
In some cases, we advise that it may make most sense to refuse a gift. Under Florida law, there is a presumption that the person receiving the gift wants it. However, individuals in Florida are entitled to disclaim a gift whenever the way. If you want to know more about this right in Florida, click here.
Talk to an Experienced Estate Planning Lawyer
You should to talk to an experienced estate planning lawyer if you are contemplating whether to create a will, how you should leave your wealth, or whether to grant an advancement. Our team has been helping clients with similar questions for over thirty years. Read here about the importance of an estate planning.
Take advantage of our Free Consultation. Call today at our Sebastian Offices (772-589-5500) or our Vero Beach Offices (772-774-7771). You can also get started by filling out a FREE CASE EVALUATION by clicking here.