Question 1

What is intangible property in Florida law?

Accepted Answer

Intangible property is property that has no physical form but has value based on the rights it represents. Common examples include: stocks, bonds, and other securities, bank accounts and certificates of deposit, promissory notes and mortgages (the debt instruments, not the physical property securing them), intellectual property (patents, trademarks, copyrights, trade secrets), partnership interests and LLC membership interests, accounts receivable, goodwill of a business, and digital assets (cryptocurrency, domain names). Florida previously taxed intangible personal property through an annual intangible personal property tax, but this tax was repealed effective January 1, 2007.

Question 2

How is intangible property treated in Florida estate planning?

Accepted Answer

Intangible property is subject to probate in Florida if owned in the decedent’s individual name at death. Common intangible assets in Florida estates include: investment accounts, bank accounts, business interests (LLC membership interests, corporate stock, partnership interests), intellectual property rights, and promissory notes. These assets can be transferred outside of probate through: revocable living trusts (the most common Florida estate planning tool), transfer-on-death (TOD) designations for securities, payable-on-death (POD) designations for bank accounts, and beneficiary designations for retirement accounts and life insurance. Florida does not impose a state estate or inheritance tax on intangible property.

Question 3

Did Florida eliminate the intangible property tax?

Accepted Answer

Yes. Florida repealed the annual intangible personal property tax effective January 1, 2007. Before repeal, Florida imposed an annual tax on intangible personal property (stocks, bonds, notes, other financial assets). The tax was administered by the Florida Department of Revenue. The repeal was part of Florida’s strategy to attract businesses and high-net-worth individuals to the state. The nonrecurring intangible tax on certain documents (such as mortgages and other obligations) still exists at $2 per $1,000 of the obligation amount.

Question 4

How It’s Used in Practice

Accepted Answer

In practice, intangible property is used in corporate accounting, mergers, licensing agreements, and estate planning. Businesses frequently license trademarks or software to generate revenue. In Florida, intangible assets may appear in probate cases, divorce settlements, and tax assessments. Financial institutions also consider intangible property when evaluating a company’s net worth. Companies often protect these assets through intellectual property registrations and contractual safeguards.

Intangible Property

Intangible Property in Florida Law

Common Types

Florida Tax Treatment

Estate Planning Considerations

Related Terms

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