Estate Planning Basics for Florida Homeowners

If you own a home in Florida, estate planning is not optional. Florida's unique homestead laws, lack of state income tax, and specific rules around property transfer make it essential for homeowners to have a plan in place. Whether you have recently purchased a home in the Bradenton-Sarasota area or have lived here for years, understanding the basics of Florida estate planning can protect your assets and ensure your wishes are carried out. This article provides general information and is not legal advice. Consult with a qualified Florida estate planning attorney for guidance specific to your situation.

Florida Homestead Protection

Florida's homestead protection is one of the strongest in the nation. Your primary residence, referred to as your homestead, receives special protection under the Florida Constitution. For properties within city limits, homestead protection applies to up to one-half acre. Outside city limits, it can extend to 160 acres. This protection shields your homestead from most creditor claims, meaning that in many cases, creditors cannot force the sale of your primary residence to satisfy debts. This is a significant asset protection benefit, but it comes with important restrictions regarding how the property can be transferred at death.

Restrictions on Devising Homestead Property

Florida law restricts how homestead property can be passed on if you have a surviving spouse or minor children. If you are married, you cannot leave your homestead to anyone other than your spouse unless the spouse waives their rights. If you have minor children, the restrictions are even more significant. These rules apply regardless of what your will or trust says. A will that attempts to devise homestead property in a way that violates these restrictions may be challenged and overturned in probate court. Working with an attorney who understands Florida homestead law is critical to ensuring your estate plan is valid.

The Role of Trusts in Florida Estate Planning

Revocable living trusts are a common estate planning tool in Florida because they can help your heirs avoid probate, which in Florida can be time-consuming and expensive. When properly funded, a trust holds title to your assets, including your home, and distributes them according to your instructions upon your death without going through probate court. However, an unfunded trust, one that does not actually hold title to your property, will not prevent probate. It is important to work with your attorney to ensure that your homestead property is properly titled in the trust's name. Florida updated its trust laws in 2025 through Senate Bill 262, so it is worth reviewing any existing trust with your attorney to ensure it complies with current law.

Save Our Homes Portability

For homeowners with a homestead exemption, the Save Our Homes provision caps annual increases in your assessed property value at 3 percent or the Consumer Price Index, whichever is lower. Over time, this can result in a significant gap between your assessed value and your property's market value, saving you thousands of dollars in property taxes. If you sell your homestead and buy a new one in Florida, you can transfer, or port, up to $500,000 of this accumulated benefit to your new property. Estate planning should account for how this portability benefit affects your overall financial picture, particularly if you are considering downsizing.

Powers of Attorney and Healthcare Directives

A complete Florida estate plan should include a durable power of attorney, which allows a trusted person to manage your financial affairs if you become incapacitated, and a healthcare surrogate designation, which names someone to make medical decisions on your behalf. A living will, which outlines your wishes regarding life-sustaining treatment, is also an important component. These documents ensure that your affairs can be managed without court intervention if you are unable to make decisions for yourself. Florida has specific requirements for these documents, so they should be prepared by a Florida-licensed attorney.

No State Income Tax, No State Estate Tax

Florida has no state income tax, no state estate tax, and no inheritance tax. This makes the state particularly attractive for retirees with significant income from pensions, retirement accounts, Social Security, or investment portfolios. However, federal estate taxes may still apply to larger estates, so high-net-worth homeowners should work with both an estate planning attorney and a financial advisor to minimize tax exposure and maximize the assets passed on to heirs.

Getting Started

If you are buying or selling a home in the Bradenton-Sarasota area, estate planning should be part of the conversation. John Belt with Keller Williams On The Water works alongside trusted local attorneys and financial professionals to help clients think about the long-term implications of their real estate decisions. Whether you are purchasing your first Florida home, transferring property into a trust, or evaluating how a move might affect your homestead exemption, John Belt can connect you with the right resources. Contact John Belt to discuss how your real estate plans fit into your broader financial picture.