Creating And Protecting Your Legacy

Removing the Florida estate tax lien

On Behalf of | May 11, 2021 | Estate Planning |

If you are the personal representative of your loved one’s estate, there are many issues you need to take into consideration. You likely need to think about the distribution of assets among beneficiaries and could have to take other inheritance-related matters into consideration, such as avoiding a dispute.

You should also review estate taxes. Although Florida does not have an estate tax anymore, there are steps that personal representatives sometimes need to take to remove tax liens. Moreover, some estates owe taxes to the Internal Revenue Service.

How can personal representatives remove estate tax liens?

In Florida, estates do not owe taxes if the decedent passed away after 2005. However, tax liens are sometimes placed on estates. According to the Florida Department of Revenue, if the estate does not have to file Form 706-A or Form 706 with the IRS, personal representatives could have to file Florida Form DR-312 (Affadavit of No Florida Estate Tax Due) in order to remove a Florida estate tax lien. If the estate has to file Form 706-A or Form 706, personal representatives could have to file Florida Form DR-313 (Affadavit of No Florida Estate Tax Due When Federal Return Required).

Filing Form DR-312 or Form DR-313

If you need to file Form DR-312 or Form DR-313, make sure you carefully go over the instructions of the form and fill it out correctly. It is crucial to fill out the necessary form properly in order to remove the estate tax lien. Make sure you determine if the estate owes taxes at the federal level as well.