When a loved one passes away, families often worry about taxes. Will we have to pay estate taxes in Florida? Will the IRS take a big portion of the inheritance?
The good news: Florida does not impose a state estate tax. However, larger estates may still owe federal estate taxes, and all estates must deal with income and capital gains tax issues. A skilled Miami probate lawyer ensures compliance with tax laws while protecting as much of the estate as possible.
Do Florida Estates Owe Taxes?
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No Florida Estate Tax: Unlike some states, Florida does not have an estate or inheritance tax.
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Federal Estate Tax: May apply if the estate exceeds the federal exemption.
2025 Federal Estate Tax Exemption
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Each individual can pass on up to $12.92 million (2023 figure, adjusted annually for inflation) without triggering federal estate tax.
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Estates above this amount are taxed up to 40% on the excess.
Example: A Miami estate worth $15 million could face federal estate taxes on ~$2 million.
Other Tax Issues in Florida Probate
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Final Income Taxes
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The estate must file the deceased person’s final income tax return.
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Covers income earned in the year of death.
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If the estate generates income during probate (e.g., rental property, investments), the estate itself must file income tax returns until closed.
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Capital Gains Taxes
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Heirs may owe capital gains tax if they sell inherited property at a profit.
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Florida’s hot real estate market makes this especially relevant.
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Business & International Assets
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Estates with businesses or foreign investments may face additional IRS reporting requirements.
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How a Probate Lawyer Protects Families from Tax Problems
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Ensures Compliance
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Files required IRS forms and estate tax returns.
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Prevents penalties from missed deadlines.
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Maximizes Deductions
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Uses deductions for funeral expenses, debts, and administrative costs to reduce taxable estate value.
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Coordinates With CPAs
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Works with accountants to handle complex investment portfolios or international assets.
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Advises Heirs on Taxes
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Explains how selling property, transferring stock, or managing retirement accounts affects taxes.
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Local Insight: Miami Probate & Taxes
Miami estates often involve:
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High-value real estate that triggers capital gains issues.
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International heirs who may face U.S. tax obligations.
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Family businesses requiring both probate and tax planning.
A local Miami probate lawyer understands these unique challenges and helps families navigate them without unnecessary losses.
FAQs About Taxes in Florida Probate
Q: Do I owe inheritance tax if I inherit property in Miami?
No. Florida does not have inheritance tax.
Q: Does every estate file an estate tax return?
No. Only estates exceeding the federal exemption must file.
Q: Can probate lawyers help reduce taxes?
Yes. Skilled lawyers use deductions, planning strategies, and dispute creditor claims to minimize taxable value.
Conclusion
While Florida does not impose a state estate tax, larger estates may still face federal estate taxes, and all estates must deal with income and capital gains taxes. Without legal guidance, families risk overpaying or missing deadlines.
A Miami probate lawyer ensures compliance, protects heirs from unnecessary tax burdens, and helps preserve family wealth.
If you’re facing probate in Miami, call us today. We’ll review your estate and explain exactly what taxes apply—and how to minimize them.
