Quick Answer: Florida has no state estate tax, inheritance tax, or personal income tax. The federal estate and gift tax exemption is $15 million per person in 2026 under the 2025 tax law, indexed for inflation. Florida families still need careful planning: a revocable living trust to avoid probate, a pour-over will, a durable power of attorney, health care directives, and attention to Florida’s unique homestead inheritance rules. Larger estates can use lifetime gifting trusts, dynasty trusts, and life insurance trusts to move wealth across generations.
Florida is one of the most popular states in the country for people who want to protect what they have built and pass it to the next generation. The state has no estate or inheritance tax, no personal income tax, a constitutional homestead exemption, and trust laws that allow assets to remain in trust for up to 360 years. Wealthy families relocating from New York, New Jersey, Illinois, Massachusetts, and California often cite estate planning as a major reason for their move.
But Florida’s advantages do not apply automatically. Florida has its own probate system, strict rules on how a homestead may pass at death, specific signing formalities for wills and trusts, and an elective share for surviving spouses. Families who move to Florida with plans drafted in another state frequently discover gaps. Families who have never planned at all leave decisions to statutes and courts.
Nason, Yeager, Gerson, Harris & Fumero, P.A., a Palm Beach Gardens law firm founded in 1960, helps individuals and families design estate plans that protect wealth, reduce taxes, avoid unnecessary court involvement, and carry out their wishes. As a South Florida wealth preservation law firm, the firm integrates estate planning with asset protection, business succession, and tax strategy. This article explains how.
The 2026 Federal Transfer Tax Landscape
For years, estate planners prepared for a scheduled drop in the federal estate tax exemption at the end of 2025. The 2025 federal tax legislation, commonly referred to as the One Big Beautiful Bill Act, instead set the basic exclusion amount at $15 million per individual beginning in 2026, indexed for inflation, without a scheduled sunset.
| Federal Transfer Tax Item | 2026 Status |
|---|---|
| Estate and gift tax exemption | $15 million per person, indexed |
| Married couple combined | $30 million with proper planning |
| Top estate tax rate | 40% |
| Annual gift exclusion | Indexed; check current IRS figure |
| Generation-skipping transfer exemption | Matches estate exemption |
| Florida estate or inheritance tax | None |
What This Means for Florida Families
Most Florida families will not owe federal estate tax under current law. But tax law can change with future Congresses, and families with estates near or above the exemption, or with rapidly growing assets such as closely held businesses and real estate, still benefit from planning. For everyone else, the focus shifts to probate avoidance, income tax basis planning, incapacity protection, asset protection for heirs, and family harmony.
Portability
A surviving spouse may use the unused exemption of the first spouse to die, called the deceased spousal unused exclusion amount, but only if a federal estate tax return is timely filed to elect portability. Many families skip that filing because no tax is due at the first death, then lose millions of dollars of exemption. The IRS has provided a simplified late election procedure for estates that were not otherwise required to file, within a limited period.
Core Documents Every Florida Resident Needs
Revocable Living Trust
A revocable trust holds assets during life, names the creator as trustee, and provides for management at incapacity and distribution at death without probate. Assets must actually be retitled into the trust to avoid probate. A trust that is signed but never funded accomplishes little.
Pour-Over Will
A pour-over will directs any assets left outside the trust to pass into it. It also names guardians for minor children. Florida wills must be signed by the testator at the end, in the presence of two attesting witnesses who also sign in the testator’s presence and each other’s. Florida also permits electronic wills and remote online notarization under specific statutory procedures, with additional safeguards for vulnerable adults.
Durable Power of Attorney
Florida’s power of attorney statute, Chapter 709, requires that a durable power of attorney be signed by the principal and two witnesses and notarized. Certain powers, such as creating or amending trusts, making gifts, and changing beneficiary designations, must be separately initialed or signed by the principal to be effective. Out-of-state powers of attorney may be honored if valid where executed, but financial institutions often prefer a Florida form.
Health Care Surrogate and Living Will
A designation of health care surrogate under Chapter 765 names someone to make medical decisions during incapacity. A living will states wishes regarding life-prolonging procedures. A HIPAA authorization allows family members to obtain medical information.
Pre-Need Guardian Designation
Florida allows a person to designate a preferred guardian in case a court later determines that a guardianship is needed. A good estate plan with a funded trust and a durable power of attorney usually avoids guardianship entirely.
Avoiding Florida Probate
Florida probate is a court-supervised process for transferring assets that do not pass by trust, beneficiary designation, or joint ownership. Formal administration typically takes many months and requires an attorney in most cases. Summary administration is available for smaller estates or estates where the decedent has been deceased for more than two years.
Probate is public, can be slow, and can invite disputes. Families with property in more than one state may face ancillary probate in each state. A funded revocable trust, beneficiary designations, and payable-on-death and transfer-on-death registrations can keep most assets out of court. A Boca Raton estate planning lawyer can review every account and property to confirm that each is set up to pass as intended.
Florida’s Homestead Inheritance Rules
Florida’s homestead has two distinct features that often surprise families.
Restrictions on Devise
Under Article X, Section 4(c) of the Florida Constitution, an owner of homestead property who is survived by a spouse or a minor child cannot freely leave the homestead by will. If the owner is survived by a spouse and no minor child, the homestead may pass to the spouse outright. Otherwise, statutory default rules give the surviving spouse a life estate, or an election to take an undivided one-half interest, with the remainder passing to descendants. These rules can produce outcomes the owner never intended, especially in second marriages.
Waivers and Planning
Spouses may waive homestead rights in a valid prenuptial or postnuptial agreement, or through a properly executed deed. Planning for blended families should address homestead specifically.
Protected Homestead Passes to Heirs
When homestead passes to the owner’s heirs, it generally retains its protection from the decedent’s creditors. That makes the homestead a valuable asset to pass down.
The Elective Share and Spousal Rights
A surviving spouse in Florida may claim an elective share equal to 30 percent of the decedent’s elective estate. The elective estate is broadly defined and includes revocable trust assets, joint accounts, retirement accounts, and certain lifetime transfers. A spouse cannot be disinherited simply by moving assets into a revocable trust. Prenuptial and postnuptial agreements can waive elective share rights, and they are commonly used in second marriages and when significant family wealth is involved.
Planning for Larger Estates
Families with estates near or above the federal exemption, or who want to protect future growth, can use several lifetime strategies.
| Strategy | Primary Benefit |
|---|---|
| Spousal Lifetime Access Trust (SLAT) | Uses exemption while spouse keeps indirect access |
| Irrevocable Life Insurance Trust (ILIT) | Keeps insurance proceeds out of the taxable estate |
| Grantor Retained Annuity Trust (GRAT) | Transfers appreciation with little or no gift tax |
| Dynasty Trust | Protects wealth across generations, up to 360 years in Florida |
| Intentionally Defective Grantor Trust sale | Freezes value of appreciating assets |
| Charitable Remainder Trust | Income stream, charitable deduction, deferral of gain |
| Family Limited Partnership or LLC | Centralized management, potential valuation discounts |
Dynasty Trusts in Florida
Florida’s rule against perpetuities, Section 689.225, allows trusts created after December 31, 2000 to last up to 360 years. A dynasty trust allocated generation-skipping transfer exemption can benefit children, grandchildren, and later generations without additional transfer tax, while providing creditor and divorce protection for each beneficiary.
Community Property Trusts
Florida’s Community Property Trust Act, effective in 2021, allows married couples to place assets in a qualifying trust that is treated as community property. At the first spouse’s death, both halves of the trust property may receive a step-up in income tax basis, which can significantly reduce capital gains taxes on appreciated assets.
Income Tax Basis Planning
With a $15 million exemption, many families care more about income tax than estate tax. Assets held until death generally receive a step-up in basis to fair market value. Gifting highly appreciated assets during life gives up that step-up. Plans should weigh estate tax savings against lost basis adjustments, and some trusts can be drafted to bring assets back into the taxable estate when doing so produces a basis step-up without tax.
A Florida asset protection trust attorney can design irrevocable trusts that combine tax efficiency with protection from beneficiaries’ creditors.
Moving to Florida: Establishing Domicile
New residents must establish Florida domicile to obtain Florida’s benefits and to reduce the risk that a former state will claim them as residents for income or estate tax. Steps include:
- Filing a Declaration of Domicile with the county clerk under Section 222.17
- Applying for the homestead property tax exemption, which reduces assessed value and triggers the Save Our Homes cap limiting annual assessment increases
- Obtaining a Florida driver’s license and vehicle registration
- Registering to vote in Florida
- Moving important possessions, professional relationships, and memberships
- Spending more time in Florida than in any other state and documenting it
- Updating estate planning documents under Florida law
- Filing final part-year returns in the former state
High-tax states audit former residents aggressively. Documentation of the move matters. Clients in the county seat often work with a West Palm Beach wealth protection lawyer to coordinate the move with updated estate plans.
Protecting Heirs
Leaving assets outright to children exposes them to the children’s creditors, divorcing spouses, and spending habits. Lifetime discretionary trusts with spendthrift provisions can protect inheritances while giving children meaningful access and control as co-trustees or investment advisers. Trusts can also address beneficiaries with special needs without disrupting eligibility for public benefits, and can encourage education or employment through incentive provisions.
A Palm Beach asset protection attorney can integrate those protections into the overall estate plan.
Charitable Planning
Many Palm Beach County families are deeply involved in philanthropy. Charitable planning tools include donor-advised funds, private foundations, charitable remainder trusts, charitable lead trusts, and direct bequests. Individuals age 70½ and older may make qualified charitable distributions directly from IRAs, which can reduce taxable income. Combining charitable goals with family wealth transfer can reduce taxes while supporting causes the family cares about.
Business Owners and Estate Planning
For families whose wealth is concentrated in a closely held business, the estate plan must address who will own, manage, and benefit from the business. Buy-sell agreements, voting and non-voting interests, and trusts that hold business interests can protect the company and avoid forced sales to pay taxes or settle disputes. A South Fl family business succession attorney coordinates those documents with the family’s estate plan.
Keeping the Plan Current
An estate plan is not a one-time event. Families should review their plans:
- Every three to five years
- After marriage, divorce, birth, adoption, or death in the family
- After moving to or from Florida
- After selling a business or receiving a large inheritance
- After significant changes in tax law
- When a named fiduciary is no longer appropriate
Beneficiary designations on retirement accounts and life insurance override wills and trusts, so they must be reviewed along with the documents.
Frequently Asked Questions
Does Florida have an estate tax?
No. Florida has no state estate tax or inheritance tax. Large estates may owe federal estate tax if they exceed the federal exemption, which is $15 million per person in 2026, indexed for inflation.
Do I need a revocable trust in Florida?
Not everyone does, but a funded revocable trust avoids probate, provides for management during incapacity, and keeps the estate private. It is especially useful for people who own property in more than one state.
Can I leave my Florida home to my children instead of my spouse?
If you are survived by a spouse or minor child, Florida’s constitution restricts how you may leave your homestead. A valid spousal waiver, often in a prenuptial or postnuptial agreement, may allow more flexibility.
Is my out-of-state will valid in Florida?
Florida generally recognizes wills validly executed in another state, with some exceptions. However, out-of-state documents may not address Florida homestead rules or meet the formalities banks and courts expect, so updating them is recommended.
What is portability, and should we elect it?
Portability lets a surviving spouse use a deceased spouse’s unused federal exemption. It requires filing a federal estate tax return. Many advisors recommend electing portability even when no tax is due.
How long can a Florida trust last?
Up to 360 years for trusts created after December 31, 2000.
Key Takeaways
- Florida has no estate, inheritance, or personal income tax.
- The federal exemption is $15 million per person in 2026, indexed for inflation.
- Florida homestead inheritance rules can override a will if not planned for.
- Funded revocable trusts avoid probate and provide incapacity protection.
- Dynasty and community property trusts offer powerful multigenerational and tax benefits.
Contact Nason Yeager
Nason, Yeager, Gerson, Harris & Fumero, P.A. serves clients throughout Florida from four offices. Website: nasonyeager.com
Palm Beach Gardens: (561) 686-3307 | Seacoast National Centre, 3001 PGA Boulevard, Suite 305, Palm Beach Gardens, FL 33410
Boca Raton: (561) 982-7114 | 750 Park of Commerce Boulevard, Suite 210, Boca Raton, FL 33487
Fort Lauderdale: (561) 686-3307 | 110 East Broward Boulevard, Suite 1010, Fort Lauderdale, FL 33301
Tampa/St. Petersburg (By Appointment Only): (561) 686-3307 | First Central Tower, 360 Central Avenue, Suite 800, St. Petersburg, FL 33701
This article provides general information and is not legal advice. Consult a qualified attorney about your specific situation.
Sources and Further Reading
- Public Law 119-21 (One Big Beautiful Bill Act, 2025), Estate and Gift Tax Provisions – U.S. Congress
- Estate and Gift Tax FAQs and Inflation Adjustments – Internal Revenue Service
- Florida Constitution, Article X, Section 4 (Homestead) – State of Florida
- Florida Probate Code, Chapters 731–735, Florida Statutes – Florida Legislature
- Florida Trust Code, Chapter 736, Florida Statutes – Florida Legislature
- Florida Community Property Trust Act, Sections 736.1501–736.1512, Florida Statutes – Florida Legislature
- Florida Power of Attorney Act, Chapter 709, Florida Statutes – Florida Legislature
- Health Care Advance Directives, Chapter 765, Florida Statutes – Florida Legislature
- Rule Against Perpetuities, Section 689.225, Florida Statutes – Florida Legislature
- Revenue Procedure 2022-32 (Simplified Portability Election) – Internal Revenue Service
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