As 2025 approaches, Florida families face a major shift in estate planning due to the upcoming expiration of the Tax Cuts and Jobs Act (TCJA). Signed in 2017, the TCJA doubled the federal estate and gift tax exemptions, allowing individuals to transfer up to $12.92 million (2023, inflation-adjusted) tax-free.
On January 1, 2026, these exemptions are set to return to pre-2017 levels—around $7 million per individual—unless Congress intervenes. For Miami residents with significant assets such as real estate or family businesses, this change could dramatically increase federal estate tax exposure.
This guide outlines practical steps to protect your wealth and make full use of current exemptions before the law changes, with a focus on Florida’s legal environment. New to the probate landscape? Start with our overview of the Florida probate process and the Miami probate lawyer guide.
Why the TCJA Sunset Matters for Florida Estates
The higher exemption levels under the TCJA have enabled many Floridians to transfer large estates—homes in Coral Gables, condos in Key Biscayne, or family businesses—without federal estate taxes. After 2025, the exemption will drop to about $7–$8 million, and any amount above that could face a 40% federal estate tax. For a deeper dive on state and federal issues, see estate taxes in Florida and how a probate lawyer handles federal estate taxes.
While Florida has no state estate tax, those with properties in other states or abroad could face added complications. If you own a vacation home or investment property outside Florida, review our guide to out-of-state assets and probate. Global families and cross-border holdings should also see probate for international assets and probate for families with members in multiple countries. Foreign buyers will find our note on Florida real estate and foreign investors helpful.
Strategies to Maximize Exemptions Before 2025
1) Make Lifetime Gifts Before the Deadline
The current $12.92 million gift tax exemption lets you transfer assets now and remove future appreciation from your taxable estate. For example, gifting a $2 million Miami rental property in 2025 could prevent taxation on a later increase in value. If real property is involved, see our page for Miami real estate owners and how to avoid probate pitfalls.
How to do it: Use annual exclusion gifts ($18,000 per recipient in 2025) or apply part of your lifetime exemption for larger transfers. Trusts often add control and clarity—see benefits of a revocable living trust and the broader discussion of trusts vs. wills.
Florida note: Properly title gifted real estate to comply with homestead rules. For background, read how Florida homestead impacts estate planning and what to know about homestead in probate.
Action step: Work with a Miami probate attorney to draft documents and file Form 709 (gift tax return) by April 2026. Not sure where to start? Book a consultation or contact us here.
2) Create Irrevocable Trusts
Irrevocable structures such as GRATs and SLATs can shift appreciation out of your estate while preserving economic access for a spouse or returning an annuity stream to you. For foundational context, see the importance of a living trust and our overview of estate planning essentials.
Florida note: Ensure your trust aligns with the Florida Trust Code to avoid unnecessary court involvement; our resources on formal vs. summary administration and how long probate takes in Miami can help set expectations.
Action step: Execute trusts before December 31, 2025 to capture today’s higher exemptions. If family dynamics are delicate, see strategies for beneficiary disputes and what happens with executor or trustee misconduct.
3) Fund 529 Plans for Grandchildren
Front-loading 529s (up to $90,000 per beneficiary in 2025 using five-year election) reduces your estate while supporting education. If minor children or guardianship issues intersect with your plan, review guardianship planning for minors. For families with special circumstances, see special needs estate planning.
4) Support Charitable Causes
Charitable Remainder Trusts (CRTs) and direct giving can lower estate size and provide income tax benefits. Explore charitable giving in your Miami estate plan and Spanish-language guidance on donaciones caritativas.
Florida-Specific Considerations
- Homestead Protections: Before transferring your residence, understand how homestead works in probate and planning: homestead and probate and impact of homestead laws.
- Multi-State Property: Owning assets in other states can trigger ancillary probate—see out-of-state assets.
- Digital & Crypto: Don’t overlook online accounts and wallets; read about digital assets in Miami estate plans and a probate lawyer’s role with cryptocurrency.
- Business Interests: If you own a company or professional practice, coordinate succession with probate planning: business succession & probate and entrepreneur succession planning. Healthcare owners should see practice assets in probate.
Why You Should Act Now
The TCJA sunset is a firm deadline. A Miami couple with a $20 million estate could save $2–$3 million in federal taxes by acting before the exemption decreases. To keep timelines realistic, compare formal vs. summary administration and learn how to simplify probate for your family.
If you’re weighing alternatives to probate entirely, consider whether a Lady Bird deed or a revocable living trust fits your goals.
Next Steps
- Review your estate plan: Start with a baseline audit and common pitfalls: common probate mistakes in Florida and when you need a probate lawyer.
- Update documents: Ensure wills, trusts, powers of attorney, and beneficiary designations are current. For FAQs, visit our Learning Center and FAQs.
- Talk with counsel: Schedule a confidential consultation or reach out via contact. Learn more about our firm and the full scope of probate services.
Conclusion
The upcoming TCJA sunset presents both a challenge and an opportunity for Florida families. By making gifts, setting up well-structured trusts, funding education, and incorporating charitable strategies, you can cut future tax exposure and strengthen your legacy.
Ready to move forward before the deadline? Book a consultation or explore ways we help with comprehensive estate administration.
