The letter arrives bearing unexpected news. You've inherited your aunt's condo in Stuart, Florida. As this new development sinks in, questions begin to swirl around in your head. If you don’t want to keep it, what’s involved with selling inherited property? Does it need to go through probate first? What taxes will you owe? Property transfers after death follow specific legal pathways in Florida that differ from those in other states. Our Martin County probate attorney guides beneficiaries through these procedures to properly transfer real estate ownership and handle property sales. What Is Probate and How Does It Affect Florida Real Estate? Probate is the court-supervised process of administering a deceased person's estate. In Florida, real estate ownership typically cannot be legally transferred to heirs without completing the appropriate probate proceedings. When someone passes away owning Florida real property in their name alone, that property becomes part of their probate estate. The personal representative must manage this property until the court authorizes its distribution or sale. According to Florida Statute 733.607, the personal representative takes control of the deceased person's real property, except for homestead property, with a duty to preserve it until distribution or sale. Types of Florida Real Estate Probate Florida offers several probate procedures, each influencing how quickly real estate can be transferred: Summary administration. Available for estates valued under $75,000 or when the deceased has been gone for more than two years, this streamlined process typically takes two to three months. Formal administration. Required for larger estates, this probate process takes at least six months. The property remains under the personal representative's control during this time. Ancillary probate. This applies when a non-Florida resident dies owning real property in the state. For example, if your uncle from Michigan owned a vacation home in Palm City, his Florida property would require ancillary probate. How Florida Homestead Property Is Handled in Probate Florida homestead property refers to the deceased's primary residence. It follows special rules and receives significant protections that affect how it passes to heirs under Florida Constitution Article X, Section 4, and Florida Statutes Chapter 732. If the deceased was survived by a spouse or minor child, strict limitations control where the homestead can go. For instance, if John passes away leaving his wife Mary and their children, John cannot leave the homestead to anyone but Mary. If he tried to leave it to his sister in his will, Florida law would override that provision. Homestead property often passes outside probate through a separate court proceeding called a "Petition to Determine Homestead Status." This can make the transfer process faster than for non-homestead property. Selling Inherited Real Estate During Florida Probate Many beneficiaries prefer to sell inherited property rather than keep it. The timing of a property sale depends on several factors: Authority to sell. The personal representative needs court authority unless the will specifically grants this power. Creditor claims period. Florida law establishes a creditor claims period of three months after publishing notice to creditors. Many personal representatives wait until this period ends before selling property to ensure clear title. Beneficiary consent. If all beneficiaries agree to the sale, the process may move more quickly. If there are disagreements, court intervention may be necessary, extending the timeline. For example, three siblings inherit their parents' rental property in Stuart. Two want to sell immediately, but one wishes to keep it. The personal representative would likely need court guidance before proceeding with a sale. Steps to Selling Inherited Property If you're handling an estate with Florida real estate, follow these steps for a property sale: Obtain letters of administration. These court documents officially appoint the personal representative and grant authority to act on behalf of the estate. Determine if court approval is needed. Review the will for specific authorization to sell property. If not present, petition the court. List the property for sale. Work with a real estate agent familiar with probate sales in Martin County for best results. Accept an offer and close. The personal representative signs all sale documents on behalf of the estate. Distribute proceeds. The funds become part of the estate for distribution to beneficiaries after debts are paid. Tax Implications of Inheriting Florida Real Estate Understanding the tax consequences of inherited property helps beneficiaries make informed decisions about whether to keep or sell the property. Inheritance tax. Florida does not impose an inheritance tax, making it more advantageous to inherit property here than in states with such taxes. Property tax reassessment. When property transfers through inheritance, the county property appraiser may reassess its value. Documentary stamp tax. Transfers from a decedent to beneficiaries are exempt from Florida documentary stamp tax. Stepped-up basis. Inherited property receives a "stepped-up basis" to the fair market value at the date of death. This means if your aunt purchased her Stuart condo for $100,000 in 1990, and it was worth $300,000 when she passed away, your basis would be $300,000. Capital gains tax. The stepped-up basis often eliminates or significantly reduces capital gains tax when beneficiaries sell inherited property. Estate tax. For estates valued over the federal exemption amount, estate tax may apply, potentially affecting the overall inheritance. How a Martin County Probate Attorney Can Help A Florida probate lawyer familiar with Martin County procedures can provide legal guidance through Florida-specific probate procedures, facilitate property sales during probate, and resolve title issues that often surface during the process. If you've inherited Florida real estate or are named as personal representative for an estate that includes Florida property, seeking guidance from a knowledgeable Martin County probate attorney can save significant time, money, and stress during this process. With proper legal assistance, you can efficiently transfer property ownership and honor your loved one's wishes while meeting all Florida legal requirements.
