The weather and lifestyle are two reasons to move to Florida. Here are several other good reasons to reside in the sunshine state!
Florida Has No Income Tax
Florida is one of only seven states that do not collect an individual income tax. The other six are Alaska, Nevada, South Dakota, Texas, Washington, and Wyoming. Moving to Florida from a state like New York can save someone in a high-income tax bracket many thousands of dollars each year in taxes.
The prohibition against collecting an individual income tax is part of the Florida Constitution, so the state won’t be imposing a tax anytime soon. A constitutional amendment would be required to change this provision.
Asset Protection Benefits
You shouldn’t have to worry about losing your assets to a creditor or in a lawsuit if you live in Florida. The state offers many asset protection benefits, including:
- Homestead creditor protection
- Tenancies by the entirety for real property, as well as for personal property
- Protection of the cash value of life insurance
- Protection for IRAs and annuities
- Protection of assets held in a properly structured business entity
A creditor can’t claim your home to satisfy a debt unless it’s the mortgage lender who holds the property as collateral for the loan. There’s no constitutional rule against foreclosure.
The state recognizes tenancies by the entirety as well, so this prohibition applies to your spouse’s creditors as well, as long as you’re not also contractually liable for the loan. Your sole creditors can’t touch property or assets that are also owned by your spouse. Tenancies by the entirety are a form of joint ownership limited to married partners.
A tenancy by the entirety is a form of property ownership reserved for spouses.
Top Wealth Strategists
Florida is such an attractive state for the wealthy to call home that it’s also home to many top wealth strategists, tax advisors, and estate-planning attorneys. These advisors are creative and proactive in assisting their clients with growing wealth, minimizing taxes, avoiding probate, keeping clients’ final wishes private, and creating an ongoing legacy.
There’s No Estate Tax
Florida used to collect a state estate tax in the form of a “pick-up tax,” but changes in federal law phased this provision out in 2005. Many states took steps to keep the state death tax revenues flowing through a process known as “decoupling,” but not Florida. The state’s constitution also prohibits the imposition of a state estate tax.
Moving to Florida from a state like Massachusetts could save family considerable money when a loved one dies.
Property Tax Benefits
You’ll also receive two property tax breaks if you buy a home in Florida and declare that the residence is your primary “homestead.” Receive an exemption for the first $50,000 of your home’s value for property tax purposes, except for school district taxes which only receive a $25,000 exemption.
Move to Florida and enjoy not only the weather!