Benefits of Residing in Florida
Below is an overview of some potential benefits of residing in Florida. Since each persons situation is unique, those contemplating changing their state of residence should seek qualified legal, financial and tax advice prior to making a relocation decision.
Florida does not have a state income tax. This is a provision in the state constitution and a constitutional amendment would be required to implement one. The constitution also prevents cities & counties from imposing an income tax.
There’s no estate or death tax in Florida. This is also prohibited by the state constitution.
The Florida Homestead Exemption can limit future increases in the assessed value of personal homes for real estate tax purposes if the Homestead Exemption is declared and the property is qualified.
There are certain creditor protections for IRA’s, annuities & the cash value of life insurance that may apply and for a personal home if the Homestead Exemption is declared.
Sales tax rates are about average for the U.S. Some states are lower, some higher.
Since Florida is subject to experiencing hurricanes, home and property insurance may be higher than other states and should be taken into consideration.
It is generally recommended that estate plans be updated by an estate planning attorney in the new state of residence when relocating from one state to another.