What changes when you inherit a Florida home: property tax reassessment, the stepped-up basis for capital gains, insurance, and whether to keep, rent or sell.
Inheriting a parent's Florida home comes with memories and responsibilities, often at the same time. Before you decide to keep, rent or sell, it helps to understand three money issues that surprise a lot of families.
General information only. Talk with a CPA and a Florida attorney about your own situation.
Inheriting a parent's Florida home comes with memories and responsibilities, often at the same time. Before you decide to keep, rent or sell, it helps to understand three money issues that surprise a lot of families.
Under federal tax rules, inherited property usually receives a stepped-up basis, meaning its tax basis resets to the fair market value on the date of death. If you sell soon after inheriting, the taxable gain is often small or zero. A date-of-death appraisal can help document that value.
A vacant home can be hard and expensive to insure in Florida, and some policies limit coverage when a home sits empty. Add utilities, lawn and pool care, HOA dues and hurricane prep, and a house can cost the heirs thousands a year just to hold.
Confirm who legally owns the house now. If probate is needed, the personal representative is usually the one who signs. If the home passed through a trust or deed, the trustee or new owners sign. Your attorney can confirm this in one conversation.
