Recent changes to the Florida Intangibles Tax (FIT) have basically gotten rid of it. The legislature lowered the rate by one-third and took trusts off the list of who has to pay the tax. For most people, paying the FIT is now voluntary, so it’s pretty easy to avoid. The old law used to make Florida residents pay a tax on certain types of assets they owned. But the new law reduced the tax rate by a third. Now, the tax only applies if a Florida resident has a right to income from a trust or can revoke the trust. To avoid the tax, people can use a special trust called a FLITE trust or an out-of-state limited partnership. People who already have a FLITE trust can keep using it, but they might need to make some changes. Overall, the changes in the law mean that some trusts that used to be subject to the tax might not be anymore. There’s also some uncertainty about what the lawmaker might do with the tax in the future. Lester B. Law is a lawyer in Naples who specializes in wills, trusts, and estates. He is very experienced and knowledgeable in this area of law.
Source: https://www.floridabar.org/the-florida-bar-journal/the-florida-intangible-tax-the-real-voluntary-tax/
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