People who build substantial wealth often assume that moving to Florida removes estate tax concerns. Florida does not currently impose its own estate tax, but federal estate tax can still affect large estates. A Florida estate planning attorney can help families understand whether their wealth may cross federal tax thresholds and create a plan before taxes become a concern.
Does Florida have an estate tax?
Florida has not imposed an estate tax on people who died after December 31, 2004. It also does not have a separate inheritance tax.
That makes Florida attractive to many wealthy families, but living in Florida does not remove federal estate tax exposure. Federal law applies regardless of whether someone lives in a state with its own estate tax.
For 2026, the federal basic exclusion amount is $15 million per person. An estate below that level may not owe federal estate tax, although earlier taxable gifts can affect how much exclusion remains available at death.
When can a multi-million dollar estate face federal tax?
Federal estate tax planning becomes especially important when a person’s assets approach the federal exclusion. The calculation can include much more than cash in a bank account.
Real estate and investment accounts may be part of the taxable estate. Business ownership can also add substantial value. Life insurance proceeds may be included in the insured person’s taxable estate in some circumstances.
Asset growth can also change the picture. Someone whose estate is comfortably below the federal threshold today could cross it later as investments appreciate or a business becomes more valuable.
How can married couples reduce estate tax exposure?
Federal law generally allows assets to pass to a U.S. citizen spouse without federal estate tax through the marital deduction. This can postpone estate tax until the surviving spouse later dies.
Married couples may also be able to use portability. Portability allows a surviving spouse to use the deceased spouse’s unused federal estate tax exclusion if the proper election is made. The executor generally makes that election by filing a federal estate tax return.
Portability can be valuable, but it should not be treated as an automatic substitute for planning. A Florida estate planning attorney can review how assets are owned and whether additional trust planning would better fit the family’s goals.
Can lifetime gifts lower the taxable estate?
Giving property away during life can reduce the amount that remains in an estate at death. In 2026, a person can generally give up to $19,000 to an individual recipient under the annual gift-tax exclusion without using part of the lifetime federal exclusion.
Larger gifts do not necessarily create an immediate tax bill. They may instead use part of the person’s lifetime estate and gift tax exclusion. Certain gifts also require a federal gift-tax return.
Lifetime gifting can be especially useful when an asset is expected to increase substantially in value. Transferring it earlier may move future appreciation outside the donor’s estate. However, gifts can have income-tax consequences, so tax savings at death should not be considered in isolation.
Can trusts help protect a large estate?
Trusts can play an important role, but simply creating a trust does not automatically reduce estate taxes.
Assets in a revocable living trust generally remain part of the creator’s taxable estate because the creator retains control over them. A properly structured irrevocable trust may produce a different result if the person transferring the assets gives up the rights required under federal tax law.
Trust planning may be useful for valuable life insurance or appreciating property. It can also help families control how wealth passes to future generations. The exact structure should reflect the type of property involved and the owner’s long-term goals.
Why should wealthy families review their plans regularly?
A plan that works when an estate is worth $8 million may no longer work when its value reaches $15 million or more. Tax laws can change as well.
Regular reviews allow families to consider new property or changes in asset values. Marriage or divorce can also affect an existing strategy. Planning before an estate crosses a tax threshold generally provides more options than trying to address the problem after a death.
How can Estate Plan First help protect a large estate?
Consider a Florida business owner whose estate is currently worth $13 million. Her company is growing rapidly, and she expects its value to increase significantly over the next several years. If she waits until retirement to consider estate tax planning, the increased business value could push her estate above the federal exclusion. Planning earlier could allow her to explore gifting or trust strategies while she still has time to make thoughtful decisions.
A Florida estate planning attorney at Estate Plan First can review your assets and help you develop a plan that addresses potential federal estate tax exposure while protecting the wealth you intend to leave behind. To schedule a consultation, fill out the online contact form or call Estate Plan First on (904) 621-2230.
