The Florida probate process allows an opportunity for interested parties to make claims against estates. Personal representatives must communicate with creditors and resolve the outstanding financial obligations of deceased individuals.
An estate is also often responsible for any outstanding taxes owed by the deceased party, including income taxes. In some cases, the estate itself could have tax obligations. Estate sales can generate income and make an estate income tax return necessary. There may also be taxes owed based on the value of the estate, called estate taxes.
Although Florida no longer has a state-level estate tax, federal estate taxes may still apply to Florida estates. When do personal representatives need to retain assets for estate taxes?
Only large estates pay estate taxes
The federal threshold for estate taxes is relatively high when compared with the average estate passing through the Florida probate courts. The maximum exempt value of an estate, as established by federal policy, tends to change every year.
In 2026, individual estates must have assets worth $15 million or more for federal estate taxes to apply. The larger the estate becomes, the higher the tax rate imposed. The federal estate tax rate is progressive. It increases as the exempt value of the estate increases and ranges from 18% to as high as 40%.
Fulfilling that tax obligation may require the liquidation of certain estate resources. Personal representatives may need to analyze the estate’s resources carefully to estimate if taxes may be due.
Having guidance when identifying potential obligations can reduce the risk inherent in estate administration and probate proceedings. Personal representatives frequently require legal guidance to ensure that they fulfill all of their responsibilities and minimize their liability.