Prior to January 1, 2005, Florida’s estate tax system was commonly referred to as a “pick up” tax. This was because Florida picked up all, or a portion of, the credit for state death taxes allowed on the federal estate tax return (federal Form 706 or 706NA). Under this system, when the estate’s gross value was below the minimum federal estate tax filing threshold, the estate tax was not due to Florida.
Federal changes eliminated Florida’s estate tax after December 31, 2004. This happened because the federal credit for state death taxes on the federal estate tax return became a deduction for state estate taxes. Since Florida estate tax was based solely on the federal credit, after December 31, 2004 estate tax was no longer due. However, the personal representative of an estate may still need to complete certain forms to remove the automatic Florida estate tax lien.
Estates Required to File a Florida Estate Tax Return:
For estates of decedents who died prior to December 31, 2004, and that are required to file a federal estate tax return (federal Form 706 or 706NA), the personal representative must file a Florida Estate Tax Return (Florida form F-706).
Estates Not Required to File a Florida Estate Tax Return:
For estates of decedents who do not owe Florida tax and that are not required to file a federal estate tax return (federal Form 706 or 706NA), the personal representative may need to complete an Affidavit of No Florida Estate Tax Due (Florida form DR-312) to remove Florida’s automatic estate tax lien. By recording the Affidavit with the court in every Florida county where the decedent owned real property, the property may be disposed of with clear title concerning Florida’s estate tax. The Affidavit may also be used for probate purposes.
Estates Required to File a Federal Estate Tax Return (federal Form 706 or 706NA) and the decedent’s date of death is AFTER December 31, 2004:
For estates of decedents who do not owe Florida tax but that is required to file a federal estate tax return (federal Form 706 or 706NA), and the decedent’s date of death is after December 31, 2004, the personal representative may need to complete an Affidavit of No Florida Estate Tax Due When Federal Return is Required (Florida form DR-313) to remove Florida’s automatic estate tax lien. By recording the Affidavit with the court in every Florida county where the decedent owned real property, the property may be disposed of with clear title concerning Florida’s estate tax.
