Can I sell an inherited property in Florida without going through probate?

It depends on how the property was titled. If the property was in a revocable living trust, it passes outside of probate — the trustee can sell without a court proceeding. If the property had a properly executed Lady Bird deed (enhanced life estate deed), it passes automatically to the designated beneficiary. If the property was jointly titled with rights of survivorship and one owner has died, the surviving owner takes title by filing an affidavit of survivorship. If none of these apply and the property is solely in the deceased's name, probate (or a probate alternative) is required before the property can be sold.

What is a stepped-up basis and how does it affect capital gains when selling inherited property?

When you inherit a property, your cost basis is stepped up to the fair market value of the property at the date of the decedent's death — not what the decedent originally paid. This is enormously significant for capital gains tax. Example: A parent bought a home in 1985 for $85,000. It's worth $650,000 at their death. You inherit it with a $650,000 stepped-up basis. If you sell immediately for $650,000, your capital gain is $0. If you sell for $680,000 after some appreciation, your gain is only $30,000 — not the $565,000 it would have been if you inherited the original basis. The stepped-up basis is one of the most valuable tax provisions in the federal tax code for heirs.

What happens when multiple heirs inherit a Florida property and can't agree on what to do?

If multiple heirs inherit a property and cannot agree on whether to sell, the sale price, or what to do with the property, any heir can file a partition action in Florida circuit court. A partition action asks the court to divide the property (not practical for a house) or order a sale and divide the proceeds. Courts will typically order the sale and distribute proceeds according to each heir's fractional interest. Partition actions are expensive and slow — typically taking 6–18 months and costing $5,000–$20,000+ in legal fees. Family cooperation is far more efficient.

What is the homestead exemption status of an inherited property in Florida?

Florida's homestead exemption (the $50,000 property tax exemption and Save Our Homes cap) ends when the original owner dies. The exemption does not automatically transfer to heirs. Exception: if a surviving spouse was also on the title and continues to occupy the property, the exemption continues. If an heir inherits the property, moves in, and establishes it as their primary residence, they can apply for a new homestead exemption by March 1 of the following year. The Save Our Homes cap resets at the time of the new exemption application — potentially meaning higher assessed value (and higher taxes) until the cap builds again.

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:

Estate sale or donation: Remove personal property before listing — a cluttered home with decades of accumulated belongings presents poorly and reduces perceived value
Pre-listing inspection: Identify condition issues before buyers discover them
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
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

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.