Florida, the Tax HavenFlorida, the Tax Haven

Richard S. Franklin, counsel, Pillsbury Winthrop Shaw Pittman LLP, Washington, and Lester B. Law,

Florida has evolved into a U.S. tax and creditor protection haven, seducing wealthy individuals to migrate south. One of the biggest draws is that Florida imposes no income tax on individuals and trusts.¹ As of Jan 1, 2006, there's also no state estate tax, gift tax or inheritance tax.² This bodes well for clients domiciled in the Sunshine State, as compared to clients domiciled in, for example, our nation's capital. If a client in Washington with a $100 million estate (all taxable in Washington) died in 2005, that estate would owe $39 million in federal taxes and $15.5 million in D.C. taxes, a total of $54.5 million in estate taxes. If that ...