An inherited house in Florida is a property that legally transfers to heirs or beneficiaries after the owner’s death. The process typically requires probate court supervision to settle debts, validate the will (if one exists), and formally transfer ownership—though some property structures like joint tenancy or Lady Bird deeds can bypass probate entirely.
Understanding Inherited Property in Florida
An inherited house doesn’t automatically become yours just because you’re family. When someone dies owning real estate in Florida, their property becomes part of their legal estate—essentially a temporary legal entity that must settle debts before distributing assets to heirs.
The key distinction: inheritance creates a right to the property, but probate (or alternative ownership structures) determines how and when you actually take legal title. This matters enormously when you want to sell, refinance, or officially put the house in your name.
The Role of Probate in Inherited Real Estate
Probate is the court-supervised process that validates the deceased person’s will, appoints someone to manage their estate, pays outstanding debts and taxes, and ultimately distributes remaining assets to rightful heirs.
When Probate Is Required
You’ll typically need probate for an inherited house if the property was:
- Titled solely in the deceased’s name
- Owned as “tenants in common” without survivorship rights
- Part of an estate valued over $75,000
When You Can Skip Probate
Some ownership structures allow property to transfer automatically without court involvement:
Joint Tenancy with Right of Survivorship (JTWROS): When one co-owner dies, their share automatically passes to the surviving owner.
Tenancy by the Entirety: A special form of co-ownership between married couples in Florida. Upon one spouse’s death, the surviving spouse receives full ownership automatically.
Enhanced Life Estate Deed (Lady Bird Deed): The owner retains full control during their lifetime but names beneficiaries who automatically inherit upon death.
Revocable Living Trust: Property titled in a trust name transfers according to trust instructions without probate court.
How Wills Work in Florida Estate Planning
A will doesn’t prevent probate—it provides instructions to the court about who should receive assets and who should manage the estate process.
Valid Will Requirements in Florida
According to The Florida Bar’s probate guide, Florida law requires wills to be:
- Written (not oral)
- Signed by the person creating it (testator)
- Witnessed by at least two people who sign in the testator’s presence and in each other’s presence
The will must be deposited with the clerk of court within 10 days after someone with custody of the document learns of the death.
What Happens Without a Will
If someone dies “intestate” (without a will), Florida’s intestate succession laws determine who inherits. Generally:
- Surviving spouse with no children from other relationships: receives entire estate
- Surviving spouse with children from the marriage only: typically receives entire estate
- Surviving spouse with children from other relationships: receives 50%, remainder to descendants
- No spouse but descendants: children inherit equally
- No spouse or descendants: parents, then siblings, then more distant relatives
The Personal Representative’s Critical Role
The personal representative (PR)—equivalent to an executor in other states—manages the entire probate process. Their responsibilities include:
- Locating and securing all estate assets, including the inherited house
- Notifying creditors and reviewing debt claims
- Paying valid debts, taxes, and estate administration costs
- Maintaining the property during probate
- Ultimately distributing assets to beneficiaries and closing the estate
The PR has legal liability if they mishandle estate assets, which is why most PRs work with a probate attorney.
Types of Probate Proceedings in Florida
Formal Administration
The standard process for estates exceeding $75,000 or those with complications. This involves:
- Court petition and PR appointment
- Comprehensive asset inventory
- Creditor notification period
- Debt payment from estate funds
- Final distribution to heirs
Timeline: typically 6-12 months, though complex cases can extend longer.
Summary Administration
An abbreviated process available when:
- Estate assets subject to probate are under $75,000, OR
- The decedent died more than two years ago
This is faster and less expensive but offers less protection for heirs who may remain liable for certain debts for up to two years.
Disposition Without Administration
Only for very small estates consisting primarily of exempt property or amounts needed for funeral and final medical expenses.
Special Florida Homestead Rules
Florida’s homestead laws significantly impact inherited houses that served as the deceased’s primary residence.
Constitutional Protections
The Florida Constitution protects homestead property from most creditor claims (except mortgages, taxes, and specific liens). This protection extends through the probate process.
Restrictions on Leaving Homestead Property
If the homestead owner dies with a surviving spouse or minor children, they cannot freely will the property to anyone else. Instead:
- Surviving spouse typically receives a life estate (lifetime use rights)
- Children receive remainder interest (ownership after spouse’s death)
- Alternatively, the spouse can elect within six months to take 50% ownership with children receiving the other 50%
These rules override contrary will provisions, protecting family residence rights.
Tax Implications for Inherited Houses in Florida
No State Estate or Inheritance Tax
Florida has no state-level estate tax or inheritance tax. Federal estate tax only applies to very large estates (current exemption approximately $13.6 million for individuals).
Capital Gains and Step-Up in Basis
When you inherit a house, the IRS typically adjusts your “basis” (cost for tax purposes) to the property’s fair market value at the date of death. This “step-up in basis” can dramatically reduce capital gains tax if you sell.
Example: Your parent bought the house for $150,000. At death, it’s worth $400,000. Your inherited basis is $400,000. If you sell immediately for $400,000, you owe little to no capital gains tax.
Ongoing Property Tax Considerations
You’re responsible for property taxes from the date you take ownership. If the deceased had a homestead exemption and you plan to make the property your primary residence, you may qualify for your own homestead exemption—potentially saving thousands in annual taxes.
Practical Steps When Inheriting Florida Real Estate
Once you inherit, you assume significant responsibilities:
Mortgage Payments: The loan doesn’t disappear with the owner. You must continue payments or risk foreclosure.
Property Insurance: Essential in Florida’s hurricane-prone climate. Lapses in coverage can devastate your inherited asset’s value.
Maintenance and Repairs: Deferred maintenance reduces property value and can create liability issues.
HOA or Condo Fees: Failure to pay can result in liens against the property.
Tax Obligations: Annual property taxes must be paid on time to avoid tax liens and potential tax deed sales.
Common Scenarios for Inherited Houses in Florida
Scenario 1: Widowed Parent, Multiple Adult Children
Parent dies with house solely in their name, no surviving spouse, three adult children. Estate value $350,000.
Result: Formal probate required. Court appoints PR (often one child), debts are paid, house is divided equally among three children as tenants in common. They can sell and split proceeds or buy out siblings’ shares.
Scenario 2: Married Couple, Tenancy by the Entirety
House titled to both spouses as tenants by the entirety (common for married couples). One spouse dies.
Result: Surviving spouse automatically receives full ownership without probate for that property. Other estate assets may still require probate.
Scenario 3: Lady Bird Deed Planning
Parent executes Enhanced Life Estate Deed naming adult children as remainder beneficiaries while retaining full control during lifetime.
Result: Upon parent’s death, house transfers automatically to children without probate, significantly reducing costs and timeline.
When Multiple Heirs Inherit Together
Co-inheriting property with siblings or other relatives often creates challenges. Without clear agreements, you become tenants in common—each owns an undivided percentage interest but no one can unilaterally sell or mortgage the entire property.
Common resolutions include:
- Selling the property and dividing proceeds proportionally
- One heir buying out others’ shares at fair market value
- Establishing a formal co-ownership agreement for shared use or rental
The longer you wait to resolve these issues, the more complicated relationships and finances become.
Selling an Inherited House in Florida
Many heirs choose to sell inherited property, especially when:
- Multiple heirs can’t agree on keeping or managing the property
- The house needs significant repairs
- Property taxes and maintenance costs strain finances
- Emotional attachment makes living there difficult
- You live out of state and can’t manage the property
Traditional Sale vs. Cash Sale Options
Traditional sales through real estate agents work well for properties in good condition but typically require 3-6 months and involve repairs, staging, and ongoing carrying costs during the listing period.
Cash home buyers offer an alternative for heirs who need faster resolution, have properties needing substantial repairs, or want to avoid the complexity of traditional sales while managing an estate.
If you’re facing the challenge of selling an inherited house in Florida—whether you’re dealing with probate delays, property condition issues, or simply need a quick, straightforward transaction—Rest Assured Home Buyers specializes in helping families navigate inherited property sales with fair cash offers and flexible closing timelines that work around your probate schedule.
FAQ: Inherited Houses in Florida
How long does probate take for an inherited house in Florida?
Formal probate typically takes 6-12 months, though complex estates can extend longer. Summary administration (for estates under $75,000) may resolve in 2-4 months. Properties structured to avoid probate (joint tenancy, Lady Bird deeds, trusts) can transfer within weeks.
Can I live in an inherited house during probate?
Generally yes, especially if you’re an heir, though you may need permission from the personal representative. You’re typically responsible for utilities, maintenance, and property taxes during this period. If there’s a mortgage, continuing payments is essential.
What if the inherited house has a mortgage?
The mortgage debt doesn’t disappear. Heirs must continue making payments or risk foreclosure. Options include assuming the loan (if the lender permits), refinancing in your name, or selling the property to pay off the mortgage. Many lenders offer special consideration for inherited properties under federal law.
Do I have to accept an inherited house in Florida?
No. You can disclaim (refuse) an inheritance within a specific timeframe, typically 9 months from the date of death. This might make sense if the property has more debt than equity, significant tax liens, or costly problems. Consult a probate attorney before disclaiming as the decision is usually irrevocable.
How is an inherited house divided among multiple heirs?
Unless the will or trust specifies otherwise, multiple heirs typically receive the property as tenants in common with equal percentage shares. All co-owners must agree to sell, refinance, or make major decisions. One common solution is selling and dividing proceeds according to ownership percentages.
What happens to homestead property if the deceased had a spouse and children?
Florida homestead rules protect surviving spouses and minor children. Typically, the surviving spouse receives a life estate (lifetime use rights) while children receive remainder interest. The spouse can alternatively elect 50% ownership with children receiving the other 50%. These rules often override contrary will provisions.
Can I get a homestead exemption on an inherited house?
Yes, if you make the inherited property your primary residence and meet Florida’s homestead requirements. This can significantly reduce annual property taxes. You’ll need to apply with your county property appraiser’s office, typically by March 1st for the following tax year.
What are the tax implications of selling an inherited house in Florida?
Florida has no state inheritance tax or capital gains tax. At the federal level, you benefit from “step-up in basis”—your cost basis adjusts to the property’s value at the date of death, potentially eliminating or significantly reducing capital gains tax on sale. You’ll still owe federal capital gains on appreciation that occurs after you inherit.
