Receiving an Inheritance in Florida: What to Know

First steps

• Don't rush. There's rarely a reason to make big decisions in the first few months.
• Keep inherited funds separate from marital assets if you want them to stay your separate property.
• Get copies of the will or trust and any accountings, and ask questions if something is unclear.

Taxes

Florida has no inheritance tax or state estate tax. The federal estate tax only applies to very large estates, with an exemption of $15 million per person in 2026, and is paid by the estate, not by you. Most inherited assets receive a new income tax basis equal to their value at death, which can greatly reduce capital gains if you sell.

Inherited IRAs and 401(k)s are different: withdrawals are generally taxable income, and most non-spouse beneficiaries must empty the account within 10 years. Talk with a tax professional before cashing out.

An inherited home

The prior owner's homestead exemption and Save Our Homes cap don't transfer. The property is reassessed, which can raise taxes sharply. If you'll live there, apply for your own homestead exemption. If siblings inherit together, agree on a plan to sell, rent or buy out.

Protecting what you inherit

Update your own estate plan. If you leave an inheritance to your children, consider a trust that protects it from their divorces and creditors. You can also sometimes disclaim (refuse) an inheritance under Chapter 739 so it passes to the next beneficiary. You generally must disclaim before accepting any benefit and, for tax purposes, usually within nine months.

If you're a beneficiary with questions about a trust, see your rights as a Florida trust beneficiary.

Talk with a Florida estate planning lawyer

Trusted Elder Law & Asset Protection helps families in Pensacola, Escambia, Santa Rosa, Okaloosa and Walton counties plan ahead. Call 850-607-2222 or schedule a free Peace of Mind Strategy Session.

This article is general information about Florida law, not legal advice for your situation.