Selling an Inherited Property in Florida: What Heirs Need to Know

Inheriting a property in Florida creates immediate questions: What happens next? Can you sell right away? What are the taxes? Who needs to agree?

The answers depend heavily on how the property was titled, whether there's a will, and how many heirs are involved. Here's what to expect.

Step 1: Determine how the property passed

Before you can sell, you need to know how you received legal title. This determines your next steps:

Joint tenancy with right of survivorship

If the deceased owned the property jointly with another person (surviving spouse, joint tenant), the survivor takes full title automatically at death. The surviving owner files an affidavit of survivorship with the county clerk — no probate required. The surviving owner can then list and sell.

Tenancy in common

If the property was held as tenants in common (each person owns a fractional interest), the deceased's share passes through their estate — to probate if there's a will, to intestate succession if there's no will. This requires probate before the share can be sold.

Revocable living trust

If the property was in a revocable trust, it passes to the trust's beneficiaries outside of probate. The trustee has authority to sell the property according to the trust's terms without court involvement. This is often the fastest path for heirs.

Lady Bird deed (enhanced life estate deed)

A Lady Bird deed allows a property owner to name a beneficiary who receives the property automatically at death — bypassing probate. The beneficiary files an affidavit with the deed documentation. No court involvement needed.

Solely in decedent's name

If the property was in the decedent's name alone with no joint owner and no trust or Lady Bird deed, probate is required before the property can be sold.

Probate in Florida: what heirs face

Probate is the court-supervised process of administering a deceased person's estate — verifying the will, paying debts, and distributing assets to beneficiaries.

Formal administration

Standard Florida probate for larger estates or contested situations. Requires a Florida-licensed probate attorney. Timeline: 6–18 months typically. Cost: attorney fees are set by Florida statute — a percentage of the estate value (3% of the first $1M in estate assets, sliding scale below).

Summary administration

Available when: (a) the estate's probate assets are less than $75,000 in value, or (b) the decedent has been dead for more than 2 years. Much faster — can often be completed in 2–4 months. Still requires a Florida attorney, but less complex.

Disposition without administration

For very small estates where the only probate assets are personal property, not real estate. Generally not applicable to inherited property sales.

The practical impact: If the property is solely in the decedent's name, you cannot sign a listing agreement or contract until probate establishes the personal representative (executor) with authority to act on behalf of the estate, or until the property is distributed from the estate to the heirs.

The stepped-up basis: your most important tax concept

Inherited property receives a stepped-up cost basis to the fair market value at the date of the decedent's death. This is federally provided and dramatically changes the capital gains tax calculation.

Without stepped-up basis (how it works for sold property, not inherited):

• Parent bought home in 1990 for $95,000
• Home is worth $700,000 at death
• Capital gain: $605,000
• Federal long-term capital gains tax: $90,750+ (at 15% rate)

With stepped-up basis (inherited property):

• Inherited with basis = $700,000 (date of death value)
• Sell immediately at $700,000: Capital gain = $0
• Sell at $720,000 after 6 months: Capital gain = $20,000
• Federal long-term capital gains tax: $3,000 (at 15% rate)

The stepped-up basis is why selling inherited property shortly after death typically generates very little capital gains tax — even on properties that appreciated dramatically during the decedent's lifetime.

Important: The estate should obtain a professional appraisal (or agent CMA) documenting the date-of-death value. This establishes the stepped-up basis for tax purposes. Without documentation, the IRS may challenge the basis claimed.

When multiple heirs are involved

Multiple heirs add coordination complexity. Common scenarios:

All heirs agree to sell: Best case. The personal representative (if in probate) or all heirs jointly (if property was distributed from the estate) sign the listing agreement. Decision-making authority depends on whether probate is still open.

One heir wants to keep the property: The heir who wants to keep it must buy out the others at a fair market value. This requires agreement on value (appraisal or agreed listing agent analysis) and financing — the keeping heir needs to fund the buyout from savings or a refinance/purchase loan.

Heirs disagree on whether to sell: Any heir can petition for a partition action — a court proceeding that can compel a sale. Partition actions are expensive (legal fees for all parties) and slow (6–18 months in Florida courts). Courts will order the property sold and proceeds divided by fractional interest. Family cooperation and a mediator are strongly preferable to partition litigation.

Heirs in different states: Common for Florida vacation/investment properties. The listing and sale process can be managed remotely — contracts and documents can be signed electronically. The personal representative is appointed by the Florida probate court regardless of where heirs live.

The property during the transition period

While probate is pending and the property cannot yet be sold, someone needs to handle:

• Mortgage payments: If there's an existing mortgage, it remains in effect. Missed payments during probate damage the estate and the eventual sale price. The estate's liquid assets should fund these; if insufficient, heirs may need to fund temporarily.
• Property insurance: Homeowner's insurance must be maintained. Notify the insurer of the ownership change — policies often have vacancy provisions that affect coverage.
• Property taxes: Continue accruing. Florida offers a probate-period extension on tax delinquency timing, but taxes still must be paid before closing.
• Maintenance: Deferred maintenance during an extended probate period damages sale price. Keep up with the basics.

The Florida homestead issue

Florida's homestead exemption — both the $50,000 property tax exemption and the Save Our Homes cap on assessed value increases — ends at the owner's death.

What this means: If a parent had a Save Our Homes cap that held the assessed value at $200,000 while market value was $600,000, the heir who takes the property will be assessed at market value ($600,000) for property tax purposes — a potentially dramatic increase in annual taxes.

Exception: A surviving spouse occupying the home as their primary residence can maintain the homestead exemption. Otherwise, a new exemption application is required by March 1 of the year following the year in which the heir established the property as their primary residence.

Preparing the property for sale

Inherited properties often have deferred maintenance, dated finishes, and personal property to remove. The sale preparation process:

1. Estate sale or donation: Remove personal property before listing — a cluttered home with decades of accumulated belongings presents poorly and reduces perceived value
2. Pre-listing inspection: Identify condition issues before buyers discover them
3. Strategic updates vs. price reduction: Determine whether selective updates (fresh paint, carpet, appliances) pencil out or whether pricing to reflect the original condition is more efficient
4. Disclosure: Florida requires disclosure of known material defects — as an heir who didn't live in the property, you may have limited knowledge. Disclose what you know and price/present accordingly

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Ryan Solberg has experience with estate sales, probate property transactions, and multi-heir family coordination in Central Florida. If you've inherited a property and need guidance on the process — from probate timeline to sale preparation — contact Ryan for a confidential consultation.