If I am the PR of a Florida Estate Planning, do I have to pay income taxes on the money I receive?
The short answer is yes you do. These fees are considered an expense of the estate and unless you qualify for an exemption, you would have to report this as income on your tax return. You should speak to your accountant about where to pick this up and how this will impact your income.
If the money is paid as a distribution of assets instead of a fee, there is generally no income tax associated with the money. For estates which have a value of less than the estate tax exemption, this might be a solution.
For larger estates, the PR fees are only ordinary income while the asset if counted in the estate could be subject to estate taxes in the amount of 45%.
It is important to consider the tax implications of your estate plan. This is often hard to do with the frequency of changes to the death tax or estate tax.
This is another reason to have your Florida Estate Planning reviewed by a Florida Estate Planning Lawyer on a regular basis.