Estate taxes are often confusing. This is especially true when they change often. It does not help that they occur at both the federal and state levels. Federal law changes may affect state laws, which is what happened with the Florida estate laws with recent changes to the federal regulations.
Prior to 2005, Florida had an estate law in place, according to the Department of Revenue. At this time, the state estate tax depended on the federal credit allowance. When the federal government removed that credit and changed it to a deduction, it invalidated the state tax.
What this means for you is that if your loved one died after the beginning of 2005, then there is no state estate tax due. However, there may be an automatic estate tax lien put on the estate by the state. If this happens, you can file an Affidavit of No Florida Estate Tax Due to have the state release the lien.
The form you will need is either DR-312 or DR-313, which depends on whether you must file IRS Form 706 or 706-NA for the estate. You can get the DR-312 or 313 forms from your county clerk of court office. Go to the office of the location of the property with the lien to fill out and file the form. You must file it in person with the clerk.
Even when the state no longer has an estate tax, there may still be headaches when dealing with the taxes on an estate. Make sure to check your loved one’s estate for this issue. This information is for education and is not legal advice.