How are Estate Taxes Handled in Florida Probate?

No one wants to worry about taxes after losing a loved one, but it is important to know how they work.

Losing someone you love is the hardest thing you will ever go through. In the days, weeks, and months following, the last thing you want to worry about is taxes. However, taxes are an important issue that is resolved during the probate process, and it is important to know how estate taxes work.

What is the Estate Tax in Florida?

Florida law does not impose an estate tax. This means that after a person passes away, there are no taxes on the transfer of their assets within their estate. Still, this does not mean that estates in Florida are never subjected to an estate tax. There is a federal estate tax that larger estates may be subject to.

What is the Federal Estate Tax?

Under federal law, estates that are valued over $15 million for individuals, or $30 million for married couples, are subject to an estate tax. Any portion of the estate valued over these amounts is subject to a 40 percent tax. These amounts are for 2026 and are a significant increase from the $13,990,000 for estates of decedents who passed away in 2025. The exemption increase is part of the One Big Beautiful Bill.

Valuing Assets Within an Estate

Due to the fact that the federal estate tax only applies to any portion of an estate that is above the threshold, it is critical to ensure that all assets within an estate are properly valued. All assets, including investments, real estate, and personal property, must be valued accurately. Estates that are not properly valued may trigger an audit by the IRS and other penalties. Personal representatives are responsible for valuing the property within an estate after a person passes away, and it is recommended that they work with a qualified appraiser to ensure accurate valuations.

Credits and Deductions for Estate Taxes

There are several credits and deductions that can be used to reduce the tax liability of an estate. For example, if the decedent had a spouse who is an American citizen, the Unlimited Marital Deduction can be used. This allows the surviving spouse to receive an unlimited amount of property from the deceased spouse without incurring gift or estate taxes at the federal level. Charitable donations are also eligible for deductions in many cases.

Our Probate Lawyer in Florida Can Advise On Your Case

When going through probate in Florida, understanding how estate taxes work is an important part of the process. By working with our Florida probate lawyer at Brian K. McMahon, P.A., you can take advantage of available credits and deductions and ensure that the tax liability of the estate is minimized as much as possible. Call us today at 561-658-1789 or fill out our online form to schedule a free consultation with our experienced attorney and to learn more about how we can help with your case.