I Inherited a House in Florida —
Now What? A Guide to Probate,
Taxes & Selling

Finding out you've inherited a house in Florida raises a dozen immediate questions. Do you need a lawyer? What happens with the mortgage? How much will you owe in taxes? Can you sell it right away? This comprehensive guide answers all of those questions — in plain English.

First Question: Is There a Will?

The existence and validity of a will determines how the estate is administered. In Florida, a will must be:

• In writing
• Signed by the testator (the person who made the will)
• Witnessed by two competent adult witnesses who signed in the testator's presence

Handwritten (holographic) wills are generally not valid in Florida unless executed with proper witnesses. If there is no valid will, the estate passes under Florida's intestacy laws — typically to the surviving spouse, then to children in equal shares.

The Three Types of Florida Probate

1. Formal Administration

Required when:

• The value of non-exempt assets exceeds $75,000, or
• The decedent died less than two years ago (regardless of estate size)

Under formal administration, the circuit court appoints a personal representative (executor) who has authority to manage and sell estate assets — including real property. The personal representative must be represented by a Florida-licensed attorney. The process involves:

• Filing a petition with the circuit court in the county where the decedent resided
• Publishing a notice to creditors (a 3-month creditor claims period runs from this notice)
• Inventorying and appraising estate assets
• Paying valid creditor claims and estate expenses
• Distributing remaining assets to beneficiaries and closing the estate

Timeline: 6 to 12 months for uncontested estates. Contested estates (disputes among heirs or creditor challenges) can take years. Attorney fees in formal administration are set by statute — typically 3% of the estate value for the first $1 million.

2. Summary Administration

Available when:

• The total value of non-exempt assets is $75,000 or less, or
• The decedent has been deceased for more than two years

Summary administration is significantly faster — typically 2 to 4 months — and less expensive. Unlike formal administration, there is no personal representative. The court issues an Order of Summary Administration directing the transfer of assets directly to the beneficiaries. Summary administration can sometimes be completed without a full attorney engagement, though legal guidance is still advisable.

3. Disposition Without Administration

A very limited option available when the estate consists only of personal property (not real estate) that is exempt from creditors, or when the only assets are household items and the decedent's exempt property. This process does not apply to inherited real estate — if real property is involved, formal or summary administration is required.

Probate-Avoiding Mechanisms

Not all inherited Florida property must go through probate. The following title structures pass property outside of the probate process:

• Joint tenancy with right of survivorship (JTWROS): The surviving co-owner inherits automatically. File a death certificate and an Affidavit of No Florida Estate Tax Due to update the title.
• Tenancy by the entirety: Florida's form of co-ownership between spouses. Passes to the surviving spouse automatically, with strong creditor protection.
• Lady Bird Deed (Enhanced Life Estate Deed): Florida allows the grantor to retain a life estate with full power to sell or mortgage during their lifetime. On death, property passes automatically to the named remainder beneficiary — no probate required.
• Revocable living trust: Property held in trust passes to beneficiaries according to trust terms, completely outside probate. The successor trustee has immediate authority to sell.
• Beneficiary deed: Similar to a Lady Bird Deed but without the retained life estate power. Passes property on death without probate.

Understanding the Tax Implications

Florida Has No Inheritance Tax or Estate Tax

This is the good news. Florida repealed its state estate tax in 2004, and Florida has never had an inheritance tax. Heirs receiving Florida real property owe no state taxes simply by virtue of inheriting the property. Federal estate taxes only apply to very large estates — the federal exemption is currently $13.61 million per individual (2024), and fewer than 0.2% of estates owe federal estate tax.

Capital Gains Tax and the Stepped-Up Basis

The most financially significant tax concept for inherited property is the stepped-up (or step-up) cost basis. Under IRC Section 1014, when you inherit property, your tax basis is reset to the fair market value of the property on the date of death — not the original purchase price the deceased paid decades ago.

The practical implication: selling an inherited Florida home shortly after inheriting it typically results in minimal capital gains tax. The faster you sell relative to the date of death, the smaller the gap between your stepped-up basis and the sale price, and the lower your tax exposure.

Important caveat: if you hold the inherited property for years and it appreciates significantly, you will owe capital gains on the appreciation above your stepped-up basis. Consult a CPA or estate planning attorney to model your specific situation.

Property Taxes: The Homestead Consideration

Florida's homestead exemption reduces the assessed value of a primary residence for property tax purposes and limits annual assessment increases to 3% per year (the Save Our Homes cap). When a property owner dies, the homestead exemption and Save Our Homes cap do not automatically transfer to heirs.

If you inherit a homesteaded property:

• If you plan to make the property your primary residence, apply for the homestead exemption by March 1 of the following year. You will establish a new Save Our Homes cap but at current market value — meaning your first year's assessed value will likely increase significantly.
• If you do not make it your primary residence (as a rental or investment property), expect the assessed value to increase toward market value at the next county reassessment — which can substantially increase property taxes.

Homestead Property and Heir Rights Under Florida Law

Florida's homestead protection rules add a layer of complexity unique to this state. Under Article X, Section 4 of the Florida Constitution, a homestead property cannot be devised (willed) by a married owner if it would disinherit a surviving spouse or minor children.

Specifically:

• If the deceased was married, the surviving spouse receives a life estate in the homestead, with the remainder to the decedent's descendants — regardless of what the will says.
• Alternatively, the surviving spouse may elect to take a one-half undivided interest in the homestead, with the other half going to the descendants.
• This can create complex co-ownership situations where multiple family members must agree to sell — a common source of conflict in inherited property sales.

Your Selling Options After Inheriting a Florida Home

Option 1: Sell Through a Real Estate Agent

Best when the property is in good condition, probate is fully closed, all heirs are in agreement, and you have 3 to 6 months to complete the process. Agent commissions of 5 to 6% plus closing costs will reduce your net proceeds, but you may achieve the highest market price.

Option 2: Sell As-Is to a Cash Buyer

Best when you need to sell quickly, the property has deferred maintenance or significant repair needs, or you want to minimize the time and complexity of the sale. Cash buyers like We Help Florida Sellers can often work directly with probate attorneys to structure deals that close the moment court approval is received — no waiting required once the legal process is complete.

Advantages of selling inherited property to a cash buyer:

• No repairs, cleaning, or staging required
• No commissions or closing costs
• Close in 7 to 21 days (or whenever probate allows)
• No financing contingencies that can collapse a deal
• Experience handling inherited and probate properties — no learning curve

Option 3: Keep the Property

If the property is in a strong rental market, you could retain it as a long-term investment. However, this requires landlord capability, capital for any needed repairs, and the ability to handle ongoing management. For most out-of-state heirs or those dealing with significant grief, this adds unwanted complexity.

Next Steps If You Have Just Inherited

1. Locate the deed and determine how the property is titled to understand whether probate is required.
2. Contact a Florida probate attorney if the property is titled solely in the deceased's name. Time matters — creditor claim periods begin running at death.
3. Get a property condition assessment — a walkthrough to identify any major issues before deciding your strategy.
4. Request a cash offer — even if you plan to list traditionally, a cash offer gives you a guaranteed baseline to compare against. There is no obligation.
5. Consult a CPA about the tax implications specific to your situation, including whether the estate must file a federal estate tax return (Form 706).
6. Coordinate with all heirs. If multiple people inherited the property, all must agree to a sale. Early alignment prevents costly delays.

Inheriting a Florida home comes with both an opportunity and a responsibility. The decisions you make in the first 60 to 90 days significantly affect your ultimate financial outcome. If you'd like a no-pressure conversation about your options, our team at We Help Florida Sellers is experienced with inherited and probate properties and can walk you through the process — at no cost.