Selling an Inherited House in Florida: Probate, Homestead & Tax Guide

Inheriting a house in Florida comes with a unique set of legal, tax, and practical challenges that differ significantly from other states. Between Florida's constitutionally protected homestead exemption, its specific probate procedures, and the complications that arise when multiple heirs are involved, selling an inherited property requires careful planning.

This guide walks you through every step of the process, from understanding which type of probate applies to your situation, to navigating the homestead exemption, to making the final decision about how and when to sell. Whether you live in Florida or are managing the process from out of state, you will find actionable guidance here.

Understanding Florida Probate

Probate is the court-supervised process of validating a will (if one exists), identifying assets, paying debts, and distributing what remains to the rightful heirs. In Florida, the probate process is governed by the Florida Probate Code (Chapters 731-735 of Florida Statutes), and the type of probate you need depends on the size of the estate and whether real property is involved.

Formal Administration

Formal Administration is the standard probate process in Florida and is required when:

• The estate's value exceeds $75,000 (excluding exempt property)
• The estate includes real property such as a house, condo, or land
• The decedent passed away less than two years ago

If you are inheriting a house, you will almost certainly go through Formal Administration. Here is what to expect:

• Timeline: Typically 6 to 12 months, though contested estates can take longer
• Personal Representative: The court appoints a Personal Representative (PR), often named in the will, who has legal authority to manage and sell estate assets
• Creditor notice period: Florida law requires a 3-month creditor claim period after the Notice to Creditors is published
• Attorney requirement: Florida requires an attorney for Formal Administration (this is not a DIY process)
• Costs: Attorney fees typically run 2-3% of the estate value, plus court filing fees of $400-$500

Summary Administration

Summary Administration is a streamlined, faster probate process available when:

• The total estate value (excluding exempt homestead property) is $75,000 or less, or
• The decedent has been dead for more than two years

Key differences from Formal Administration:

• Timeline: Can be completed in weeks rather than months
• No Personal Representative appointed: The court issues an Order of Summary Administration instead
• Lower cost: Significantly less expensive than Formal Administration
• Limitation: If the house was the decedent's homestead and there is a surviving spouse or minor children, Summary Administration may not be appropriate depending on how the property was titled

Ancillary Probate for Out-of-State Heirs

If the decedent was not a Florida resident but owned property in Florida, the estate may need ancillary probate in Florida in addition to whatever probate is happening in the decedent's home state. This is a separate proceeding filed in the Florida county where the property is located.

Ancillary probate adds time, complexity, and cost. It requires a Florida attorney, and the out-of-state Personal Representative may need to appoint a Florida-based agent. This is one of the strongest reasons out-of-state heirs choose to sell inherited Florida property quickly rather than hold it.

Florida's Homestead Exemption: The Big Complication

Florida's homestead exemption is unlike any other state's. It is enshrined in the Florida Constitution (Article X, Section 4), and it creates both powerful protections and significant complications when property is inherited.

What Is the Homestead Exemption?

Florida's homestead protection actually has two distinct components:

• Constitutional homestead protection: Restricts the owner's ability to devise (will away) the home if there is a surviving spouse or minor children. This is a restriction on who can inherit, not just a tax benefit.
• Homestead tax exemption: Provides up to $50,000 in assessed value reduction for property taxes, plus the Save Our Homes cap that limits annual assessed value increases to 3% or the Consumer Price Index, whichever is less.

How Homestead Affects Inheritance

The constitutional homestead restrictions create specific inheritance rules:

If there is a surviving spouse:

• The surviving spouse receives a life estate in the homestead property (the right to live there for life), with the remainder going to the decedent's descendants
• Alternatively, the surviving spouse can elect to take a 50% interest in the property as tenants in common with the descendants (this must be done within 6 months)
• The decedent cannot will the homestead to anyone other than the spouse if there is a surviving spouse (even if the will says otherwise)

If there is no surviving spouse:

• If there are minor children, the property passes to the descendants
• If there are no minor children, the decedent can will the property to anyone
• If there is no will, the property passes according to Florida's intestacy statutes

The Save Our Homes Cap: Why Property Taxes Can Jump

This is the detail that catches many heirs by surprise. Florida's Save Our Homes amendment caps annual increases in a homestead property's assessed value at 3%. Over time, this creates a growing gap between the property's assessed value and its actual market value.

In the example above, property taxes more than double after a non-spouse heir inherits. On a home that has been homesteaded for 15 or 20 years, the jump can be even more dramatic. This is often the deciding factor for heirs who are considering whether to keep the property or sell.

Petition to Determine Homestead Status

Before you can sell an inherited homestead property, title companies in Florida will typically require a Petition to Determine Homestead Status from the probate court. This petition establishes whether the property qualifies as constitutional homestead and determines the rights of any surviving spouse and descendants.

Without this determination, a title company may refuse to issue title insurance, effectively blocking the sale. This is a critical step that can add 30-60 days to the timeline if not anticipated early in the process.

Tax Implications for Inherited Property in Florida

Florida is one of the most tax-friendly states for inheritance. However, federal rules still apply, and the property tax implications discussed above are significant.

No Florida Estate Tax or Inheritance Tax

Florida does not impose a state estate tax or an inheritance tax. This means:

• No state tax is owed simply because you inherited property
• No state tax is owed on the value of the estate
• This applies regardless of the relationship between the decedent and the heir

This is a meaningful advantage. Some states impose inheritance taxes of 10% or more on non-spouse, non-child heirs. Florida imposes nothing.

Federal Stepped-Up Basis

One of the most important tax benefits of inheriting property is the federal stepped-up basis. Under current tax law (IRC Section 1014), your cost basis in the inherited property is the fair market value at the date of death, not the original purchase price.

Here is why this matters:

• Parent purchased home in 1995 for: $120,000
• Fair market value at date of death: $380,000
• Your stepped-up basis: $380,000
• If you sell for $385,000: Capital gain is only $5,000 (not $265,000)

If you sell the property relatively soon after inheriting it, your capital gains tax liability will be minimal or zero because the property has not had time to appreciate significantly beyond the stepped-up basis.

Capital Gains Tax

If the property appreciates after you inherit it, the gain above your stepped-up basis is subject to capital gains tax:

• Short-term (held 1 year or less): Taxed as ordinary income (10-37% depending on your bracket)
• Long-term (held more than 1 year): Taxed at 0%, 15%, or 20% depending on your income
• Primary residence exclusion: If you move into the inherited home and live there for 2 of the 5 years before selling, you may exclude up to $250,000 in gains ($500,000 for married couples)

Property Tax Reassessment

As discussed in the homestead section, when a non-spouse inherits a homestead property in Florida:

• The Save Our Homes cap is removed
• The property is reassessed at current market value
• Property taxes can increase substantially (often 50-150% or more)
• The new heir can apply for their own homestead exemption if they plan to live in the property, but they start fresh with the current assessed value

This reassessment is automatic and happens in the tax year following the transfer. Heirs who are holding the property while deciding what to do should budget for this increase.

Selling Before vs. After Probate

Can You Sell Before Probate Is Complete?

The short answer: you cannot sell inherited property in Florida until a Personal Representative is appointed by the probate court. Until that appointment, no one has the legal authority to sign a deed or transfer title.

However, you do not necessarily have to wait until the entire probate process is finished. Here is the timeline:

• Step 1: File the petition for probate and get a Personal Representative appointed (usually 2-4 weeks)
• Step 2: Once appointed, the PR has authority to sell real property under FL Statute 733.612
• Step 3: The PR can list and sell the property while other probate matters are being resolved

When Court Approval Is Required

The Personal Representative can usually sell real property without additional court approval, but court approval may be required if:

• The will specifically requires court approval for property sales
• There are interested parties (such as beneficiaries) who object to the sale
• The sale price is significantly below appraised value
• The property is the subject of ongoing disputes among heirs

When court approval is needed, the PR files a Petition for Sale of Real Property. The court reviews the terms and, if satisfied that the sale is in the estate's best interest, issues an Order Authorizing Sale. This adds 30-60 days to the process.

Selling During vs. After Probate

Multiple Heirs: Common Challenges

When multiple people inherit a property, the legal and practical challenges multiply. This is one of the most common sources of delay and conflict in inherited property sales.

All Heirs Must Agree to Sell

Unless the Personal Representative has explicit authority in the will to sell the property, all heirs must consent to the sale. If even one heir wants to keep the property and the others want to sell, you have a problem.

Common scenarios include:

• One sibling is living in the house and does not want to sell, while others want their inheritance in cash
• Heirs disagree on price: Some want to accept a quick cash offer while others want to list on the open market for top dollar
• Emotional attachment: One heir has sentimental ties to the property while others see it purely as a financial asset
• Different financial needs: Some heirs need cash immediately while others can afford to wait

Buyout Options

If one or more heirs want to keep the property, a buyout is often the cleanest solution:

• Get an independent appraisal: All parties should agree to an appraiser to establish fair market value
• Calculate each heir's share: Divide the appraised value by the number of equal shares (or according to the will's instructions)
• The keeping heir pays out the others: This can be funded through refinancing, personal savings, or a new mortgage on the property
• Document everything: Use a formal agreement drafted by an attorney to avoid future disputes

Handling Disagreements: Partition Actions

If heirs cannot agree, Florida law provides a legal remedy: the partition action (FL Statute Chapter 64). Any co-owner can file a partition action in circuit court to force a resolution.

There are two types:

• Partition in kind: The property is physically divided (rare for a single home, more common for large parcels of land)
• Partition by sale: The court orders the property sold and the proceeds divided among the co-owners

Partition actions are expensive, time-consuming, and adversarial. Attorney fees, court costs, and the forced-sale nature of the process typically result in a lower net return for all parties. It is almost always better to negotiate a resolution privately.

Out-of-State Heirs

A significant number of inherited property situations involve heirs who do not live in Florida. Whether the decedent was a snowbird, a retiree, or you simply moved away years ago, managing an inherited property from another state presents real challenges.

Managing Florida Property Remotely

Even during probate, someone needs to take care of the property:

• Insurance: Homeowner's insurance must be maintained. Most policies have a vacancy clause that can void coverage if the home is unoccupied for 30-60 days. You may need to switch to a vacant home policy, which costs 50-100% more.
• Maintenance: Florida's climate is tough on unoccupied homes. Humidity causes mold, storms cause damage, and neglected landscaping invites code violations and HOA fines.
• Utilities: Water, electric, and AC should be maintained to prevent mold and pipe issues. Budget $200-400/month minimum.
• Security: Unoccupied homes are targets for break-ins, vandalism, and squatters.
• Property management: If you cannot visit regularly, hiring a property manager ($100-200/month) to check on the home is advisable.

Ancillary Probate Requirements

As discussed earlier, if the decedent was not a Florida resident, ancillary probate is required. Key considerations:

• You will need a Florida probate attorney in addition to the attorney handling the primary estate in the decedent's home state
• The out-of-state Personal Representative must appoint a resident agent in Florida to accept service of process
• Ancillary probate adds $3,000-$7,000+ in legal fees on top of the primary probate costs
• The timeline runs concurrently with the primary probate, but coordination between two legal teams adds complexity

Why Cash Sales Work Well for Distant Heirs

Out-of-state heirs face a particularly compelling case for cash sales:

• No need to visit: Cash buyers inspect the property themselves and handle the entire process remotely. Many heirs never need to step foot in the state.
• No repairs or prep: You do not need to coordinate contractors from across the country to get the home market-ready.
• Fast closing: Stop the bleeding of monthly holding costs as quickly as possible.
• Title companies handle remote closings: Documents can be signed via mobile notary in your home state.
• Eliminate ongoing risk: Every month an unoccupied home sits in Florida is a month it could sustain hurricane damage, develop mold, or accumulate code violations.

Practical Steps: Timeline and Checklist

Here is a practical timeline for selling an inherited home in Florida, from the date of death through closing:

Weeks 1-2: Immediate Steps

• Secure the property (change locks, check insurance coverage)
• Locate the will and any trust documents
• Hire a Florida probate attorney
• Obtain multiple certified copies of the death certificate (you will need 6-10)
• Contact the homeowner's insurance company to update the policy or switch to vacant home coverage
• Begin maintaining the property (lawn care, AC, water)

Weeks 2-6: Initiate Probate

• File the petition for probate in the county where the property is located
• Get the Personal Representative appointed by the court
• Open an estate bank account
• Publish the Notice to Creditors in a local newspaper (required)
• Begin the 3-month creditor claim period
• File the Petition to Determine Homestead Status if applicable

Months 2-4: Prepare to Sell

• Get the property appraised to establish current market value and the stepped-up basis
• Decide on selling strategy: traditional listing vs. cash offer
• If selling for cash, begin soliciting offers from investors and cash buyers
• Clear personal property from the home
• Address any immediate safety or code violations
• Communicate with all heirs about the selling plan and timeline

Months 4-8: Execute the Sale

• Accept an offer and sign a purchase agreement (PR signs on behalf of the estate)
• Obtain court approval for the sale if required
• Work with the title company to clear title (homestead determination, lien searches)
• Close the sale
• Distribute proceeds to heirs according to the will or intestacy law
• File final estate tax returns and close the probate case

Inherited Property Selling Checklist

Why Cash Offers Work for Inherited Properties

Inherited properties are, in many ways, the ideal candidate for a cash sale. The circumstances that make traditional sales difficult -- probate timelines, deferred maintenance, remote heirs, multiple decision-makers -- are exactly the circumstances that cash buyers are set up to handle.

Speed That Aligns with Probate Timelines

Cash buyers can close in as little as 7-14 days once the Personal Representative has authority to sell. This means you can sell the property during probate rather than waiting months for probate to close and then spending additional months on a traditional listing. The faster you close, the sooner you stop paying property taxes, insurance, maintenance, and utilities on a home nobody is living in.

As-Is Condition: No Repairs on Deferred Maintenance

Inherited homes often have years of deferred maintenance. The roof may be original, the HVAC system aging, the kitchen and bathrooms outdated. In Florida, you may also be dealing with:

• Hurricane damage: Undisclosed or partially repaired storm damage
• Mold: Florida's humidity creates mold problems, especially in vacant homes
• Outdated electrical or plumbing: Older homes may not meet current code
• Chinese drywall or polybutylene piping: Common issues in Florida homes built in certain eras
• Insurance complications: Older roofs (15+ years) may make the property uninsurable through standard carriers

Cash buyers purchase in as-is condition. You do not need to invest $20,000-$50,000 or more in repairs to make the property marketable. For heirs who did not budget for renovation costs, this is a significant advantage.

No Realtor Commission Saves 5-6%

On a $350,000 Florida home, a typical 5-6% realtor commission is $17,500-$21,000. Cash buyers do not charge commissions or fees. While the cash offer price may be below full retail market value, the savings on commission, staging, repairs, and months of carrying costs narrow the gap considerably.

Remote Sellers Do Not Need to Visit

For out-of-state heirs, a cash sale eliminates the need to travel to Florida to prepare, list, show, negotiate, and close on the property. The entire transaction can be handled remotely:

• Cash buyer inspects the property independently
• Offer is made by phone or email
• Purchase agreement is signed electronically
• Closing documents are signed via mobile notary in your home state
• Proceeds are wired directly to your bank account or the estate account

Experience with Probate Transactions

Professional cash buyers regularly purchase properties in probate. They understand the process, the timeline, and the legal requirements. They will not walk away because of probate delays, and they can coordinate with your probate attorney and the title company to ensure everything is handled properly.

Disclaimer: This article is for informational purposes only and should not be relied upon as legal, tax, or financial advice. Florida probate law, homestead law, and tax law are complex and fact-specific. Always consult with a qualified Florida probate attorney and a tax professional before making decisions about inherited property. Laws and regulations referenced in this guide are current as of February 2026 and are subject to change.