Florida’s warmth and beautiful scenery have long drawn retirees to move to the state. Recently, however, many younger people and families have flocked to the state because of the cap on state and local tax deductions under the Tax Cuts and Jobs Act. This cap limits the deductions people can claim on their federal tax returns for the state and local taxes that they have to pay. In high-tax states like California and New York, the cap has caused many people to relocate to lower-tax states like Florida. If you have decided to relocate to Florida from a different state, you should have an experienced Florida estate planning lawyer at the Law Offices of Rhonda D. Zimmerman, Esq. review your existing plan or create a new one to ensure that it comports with the laws of Florida.
Why the TCJA Has Caused an Influx of New Residents
Before the TCJA was passed in 2017, people could claim an unlimited deduction for the state and local taxes they paid on their federal returns. However, the deduction was limited by the TCJA to $10,000 for the tax years of 2018 to 2025. For people living in states with high state and local taxes, this cap meant that they would be forced to pay substantially higher taxes. As a result, many people in states like New York and California have decided to move to Florida because of its lack of state and local taxes and other tax benefits.
Why an Estate Planning Move to Florida Is Important
When you relocate to the state, an estate planning move to Florida is also important. Even if you already have an estate plan created in your former state, you should have a Florida estate planning lawyer at the Law Offices of Rhonda D. Zimmerman, Esq. review your plan. If you do not do anything with your plan, some of your wishes might be frustrated. For example, some situations will cause your Florida home to pass under the state’s intestacy laws instead of your will. Your other estate planning documents, including your powers of attorney, health care designation, and living will might also need to be changed so that they will be deemed valid under the laws of Florida.
Talk to an Experienced Florida Estate Planning Attorney
After you have completed your move to Florida and have done everything you need to establish your state residency, you should contact an experienced estate planning lawyer at the Law Offices of Rhonda D.Zimmerman. Attorney Rhonda D. Zimmerman has 30 years of experience helping people draft estate plans to protect their wishes and interests. Contact us today to schedule an appointment at (954) 822-7566.