Estate tax causes a lot of anxiety, and a lot of confusion, especially in Florida. The good news for Miami families is that the picture here is simpler than in many states. Here are the questions we hear most.
Does Florida have a state estate or inheritance tax?
No. Florida has no state estate tax and no state inheritance tax. This is one reason so many people relocate to Miami and establish Florida residency. Your heirs will not owe a separate state-level death tax simply because you lived or owned property here. The only death tax that can apply is the federal estate tax.
So will my family owe any estate tax at all?
For most families, no. The federal estate tax only applies to estates that exceed a high exemption amount, which is indexed for inflation and quite large. The vast majority of Miami estates fall well under that threshold and owe nothing. The families who do need to plan are typically those with significant real estate, business interests, or concentrated investment portfolios.
What counts toward my taxable estate?
More than people expect. The federal taxable estate can include your home and other real property, bank and brokerage accounts, business interests, retirement accounts, and even life insurance you own. For a Miami homeowner who has watched property values climb, plus a 401(k) and a life insurance policy, the total can be larger than it feels day to day.
What is “portability” and why does it matter for married couples?
Portability lets a surviving spouse use the deceased spouse’s unused federal exemption, effectively doubling the amount a married couple can pass tax-free. But it is not automatic; the surviving spouse generally must file a federal estate tax return to elect it, even if no tax is due. Missing that election is a common and costly oversight, so it is worth flagging early.
Could the exemption change in the future?
Yes. The federal exemption amount is set by Congress and has changed several times over the years, and it is scheduled to adjust again. Because the rules can shift, families near the threshold benefit from flexible plans, such as trusts that can adapt, rather than locking in a strategy built on today’s exact numbers.
Do non-citizens or out-of-country assets change things?
They can. Miami’s international community includes many residents who are not U.S. citizens or who own property abroad. The federal estate tax rules treat non-citizen spouses differently (the unlimited marital deduction may not apply, though a special trust can help), and foreign assets add complexity. These situations call for tailored advice rather than general rules of thumb.
If Florida has no estate tax, do I still need a plan?
Absolutely. Estate planning is about far more than taxes: avoiding probate, protecting your homestead, naming guardians, and ensuring your wishes are honored. Even tax-free estates benefit enormously from trusts, deeds, and powers of attorney. The absence of a Florida death tax is a relief, not a reason to skip planning.
A note for Miami families
Because federal estate tax thresholds, portability deadlines, and rules for non-citizens are technical and subject to change, families with substantial assets should review their plans periodically with a licensed Florida estate planning attorney and a tax advisor. This article is general information, not legal or tax advice.
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For more on our Florida practice, see our overview of powers of attorney in Florida. Morgan Legal Group's affiliated New York office also handles .
