Every one of these conversations starts the same way. Someone calls me a few weeks after a parent has died, and the first question is always about probate — how long it takes, whether they need a lawyer, whether they can list before it's finished.
Fair questions. Also not the expensive ones.
The expensive thing is quieter. It happens automatically, on a date nobody circles, without anyone filing anything: on January 1 following the owner's death, the Save Our Homes cap on that property usually disappears and the assessed value resets to full market value. There are two narrow exceptions, and I'll get to them — but on a Miami Beach house that has been in one family since the nineties, that single line of the tax code can change the annual carrying cost by more than the family will spend on the entire probate.
So here's the sequence I actually walk families through — tax, then timing, then title — because the order matters more than any individual item on the list.
Start with the good news, because it's bigger than people think
When someone inherits real estate, the income tax basis resets to the property's fair market value on the date of death. That's the step-up in basis under Section 1014 of the Internal Revenue Code, and for a long-held Miami Beach property it is enormous. A house bought in 1994 for $310,000 and worth $2.1 million today carries roughly $1.79 million of appreciation that simply evaporates for income tax purposes at death.
Three things follow from that, and all three surprise people:
Selling soon after death usually triggers little or no capital gains tax. If the property sells near its date-of-death value, there's minimal gain to tax. Selling costs come off on top of that.
The gain is automatically long-term. Under Section 1223(9), inherited property is treated as held more than a year even if you sell it three months after the funeral. You never have to "wait a year" for the rate.
Florida takes nothing. Article VII, Section 5 of the Florida Constitution bars a state estate or inheritance tax, and Florida's old "pick-up" tax died when the federal credit was repealed in 2005. Federal estate tax only reaches estates above $15 million per person in 2026 — a figure the One Big Beautiful Bill Act made permanent and indexed.
So for most families, the tax question is not "how much will we owe." It's "how fast does this advantage decay." And the answer is: faster than you'd like.
The January 1 reset — the number nobody warns the family about
Florida's Save Our Homes cap limits annual increases in a homesteaded property's assessed value to 3% or the change in CPI, whichever is lower. Over twenty or thirty years on this island, that cap does extraordinary work. It is entirely common here to find a house with a market value north of $2 million carrying an assessed value under $700,000.
When ownership changes, that protection ends. The property is reassessed at just value on January 1 of the year following the change, and the cap restarts from zero. The homestead exemption goes too, unless a qualifying new owner applies in their own right by March 1.
Here is what that looks like in practice.
🔑 An illustration, using round numbers. Say Mom's Miami Beach house has a market value of $2,000,000 and — after three decades under the cap — an assessed value of $600,000, with the 2026 homestead exemptions of $51,411 bringing taxable value to about $548,589. At a working rule of thumb of roughly 2% of taxable value for a Miami-Dade bill, that's around $11,000 a year.
After the reset, the same house is assessed at $2,000,000 with no homestead exemption. Same roof, same family, same millage: roughly $40,000 a year.
That's about $29,000 of new annual carrying cost, appearing on the TRIM notice the following August and the bill that November — for a property that may well still be sitting in probate.
Two exceptions are worth knowing, because they're the difference between a manageable hold and a bleeding one:
A surviving spouse is not a "change of ownership"
Transfers to a surviving spouse are excluded from the change-of-ownership definition. The capped assessment and the homestead exemption carry forward as long as the spouse holds title, keeps the property as their permanent residence and does not remarry. If that's your situation, nothing below is urgent — but confirm it with the Property Appraiser rather than assuming.
A dependent heir who already lived there may keep the cap
Florida's statutory exception is narrow and has two parts, both required: the heir was a permanent resident of the property at the owner's death, and was legally or naturally dependent upon that owner. An adult child who lives in Chicago and inherits the house does not qualify. An adult child who was living there and dependent may. This is worth a phone call to the Property Appraiser before anyone decides to hold.
Amendment 3 puts a real deadline on the calendar — December 31
Florida voters decide Amendment 3 on November 3. I wrote about it in detail here, and two of its provisions land directly on inherited property:
If an heir intends to move into the property, residency by December 31, 2026 matters. Under the amendment, someone who is already a permanent Florida resident as of that date qualifies for the expanded homestead exemption as it phases in — up to $150,000 against non-school levies in 2027, up to $250,000 in 2028. Someone who establishes residency on or after January 1, 2027 starts with a $50,000 new-resident exemption and has to maintain a Florida homestead for four years before the larger exemption applies. The deadline is about establishing residency, not about closing on anything — which means an out-of-state heir weighing a move has a decision with a date on it this fall.
If the family intends to hold and rent it, the non-homestead cap matters. The amendment would cut the annual assessment cap on non-homestead property from 10% to 5% for non-school levies starting in 2027. That doesn't reduce next year's bill — it limits how fast it compounds over a long hold. For a family thinking about keeping a Miami Beach property in the family for a decade, it's meaningful.
Neither provision takes effect before January 1, 2027, and none of it changes the reset described above. But both belong in the hold-versus-sell conversation, and neither one is in the conversation most families are having right now.
The title problem that kills closings — and it isn't probate
Now the part that actually derails transactions on this island.
Florida homestead is not ordinary property. Article X, Section 4(c) of the Florida Constitution restricts how it can be devised: if the owner is survived by a spouse or a minor child, the homestead generally cannot be given away by will, except to the spouse when there is no minor child. Where there's a surviving spouse and descendants, Section 732.401 gives the spouse a life estate with a vested remainder to the descendants — or, by election, an undivided one-half interest as tenants in common.
Translation: the will may not control who owns the house. The Constitution does. And that creates a title problem that shows up at the worst possible moment.
Most Florida title underwriters will not insure a sale of homestead property out of probate without a court order determining homestead status — and everyone holding an interest under that order has to join the contract and the deed, including a surviving spouse who was never on title. I have watched a clean contract sit for weeks because nobody obtained that order before listing, and the underwriter surfaced it in week six.
Get the order first. It costs a fraction of what a failed closing costs, and it tells everyone — including your agent — exactly who is authorized to sign.
Probate got meaningfully faster this summer
Effective July 1, 2026, Florida doubled the summary administration threshold from $75,000 to $150,000 in non-exempt assets, through CS/HB 1337, signed April 29 as Chapter 2026-57, Laws of Florida. Homestead, retirement accounts and life insurance are generally excluded from that calculation, so more estates qualify for a process that runs weeks to a few months instead of the six to twelve of formal administration.
Three things families get wrong about this, and the first one is the big one:
The new $150,000 limit applies to decedents who died on or after July 1, 2026. Earlier deaths generally remain under the old $75,000 ceiling. If you're reading this about a parent who died last year, the headline doesn't help you — check the date before anyone builds a timeline around it.
Summary administration doesn't appoint anyone to sell. No personal representative is named, so nobody holds authority to sign for the estate, and recipients stay exposed to creditor claims for two years. When the whole point is to sell the property, formal administration — with a personal representative who can contract and convey, and a three-month claim bar — is frequently the better route even though it takes longer. This is exactly the question to put to a probate attorney in week one.
If the owner lived outside Florida, you need ancillary administration. A New Jersey probate order does not move Miami Beach title on its own. Section 734.102 provides for it, and the ancillary personal representative can sell, lease or mortgage the property — but build the extra weeks into your timeline.
The two-year path is untouched: once a decedent has been gone more than two years, an estate of any size qualifies for summary administration. If a property has sat since 2023 or earlier, the route is simpler than the family fears.
And on creditors: claims are generally barred after the later of three months from first publication of the notice to creditors or thirty days from service, with Section 733.710 imposing a two-year absolute bar from the date of death. Recorded mortgages and liens survive all of it, so a payoff still happens at closing.
So: sell now, or hold?
There's no single answer. But the arithmetic is more lopsided than most families expect.
Holding costs you the reset — potentially tens of thousands a year on a long-held property — plus insurance, plus association dues on a condo. It also quietly erodes the step-up: the basis is frozen at date-of-death value, so any appreciation while you hold becomes taxable gain when you eventually sell.
And it collides with a slow absorption market. Miami-Dade's existing condo supply was 12.1 months in August, the median Miami-Dade seller received 94% to 95% of their original list price, and Miami Beach runs well past the county's timeline — third-party trackers put the city somewhere between roughly 99 and 155 days to go under contract depending on source and property mix. An inherited property is not a fast sale here, which means the January 1 reset can easily land mid-listing.
The case for holding is real in exactly two situations: an heir will genuinely live there and can file for homestead in their own right, or the family wants a long-term income property and has underwritten the post-reset tax bill honestly rather than using last year's number.
What I'd do, in order: get a date-of-death valuation on the record, get the order determining homestead, confirm with the Property Appraiser whether any exception applies to your family — and only then decide. That sequence takes weeks, not months, and it's the difference between selling a property and discovering in week six that you were never in a position to sell it.
If you've inherited a Miami Beach property — or you're about to — send me the address. I'll pull the current assessed value against market value so you can see exactly what the January 1 reset costs your family, what comparable units have actually traded for, how long they took, and whether the building's financing and assessment picture will help or hurt you. If the right answer is to hold it, I'll tell you that. There's no listing pitch in this conversation.
👉 Message me on WhatsApp | 🏷️ Own a Miami Beach property and just want a real number on it? I'll run you a proper valuation, inherited or not | ✉️ silvana@carvalhoresidences.com
Frequently Asked Questions
Do I pay capital gains tax when I sell a property I inherited in Florida?
Usually very little, and sometimes none. Under Section 1014 of the Internal Revenue Code, the property's income tax basis resets to its fair market value on the owner's date of death, so decades of appreciation are not taxed to the heir. If the property sells near that value, there is minimal gain. Section 1223(9) also treats inherited property as long-term regardless of how quickly you sell. Florida itself imposes no estate or inheritance tax, and federal estate tax applies only above $15 million per person in 2026. Get a defensible date-of-death valuation — it is the number your basis rests on.
Why did the property taxes on the house I inherited go up so much?
Because the Save Our Homes cap ended. Florida limits annual increases in a homesteaded property's assessed value to 3% or CPI, whichever is lower, and that cap can hold assessed value far below market value over decades. On a change of ownership, the property is reassessed at just value on January 1 of the following year and the cap restarts at zero, and the homestead exemption is lost unless a qualifying new owner applies by March 1. You first see it on the TRIM notice the following August and the bill in November.
Can the Save Our Homes cap transfer to an heir?
To a surviving spouse, yes — a transfer to a surviving spouse is not treated as a change of ownership, so the capped assessment and homestead exemption carry forward as long as the spouse holds title, keeps the property as a permanent residence and does not remarry. For other heirs, Florida's statutory exception is narrow and requires both conditions: the heir must have been a permanent resident of the property at the owner's death and must have been legally or naturally dependent upon that owner. An heir who did not live there does not qualify. Confirm your specific situation with the Miami-Dade Property Appraiser before relying on it.
Do I need to finish probate before selling an inherited Florida property?
You generally need some form of probate to convey insurable title. Effective July 1, 2026, Florida raised the summary administration threshold from $75,000 to $150,000 of non-exempt assets under CS/HB 1337, signed as Chapter 2026-57 — but that higher limit applies to decedents who died on or after July 1, 2026; earlier deaths generally remain under the old $75,000 ceiling. Summary administration is also available for an estate of any size once the decedent has been gone more than two years, and homestead, retirement accounts and life insurance are generally excluded from the threshold calculation. Important caveat for sellers: summary administration appoints no personal representative, so nobody is given authority to sign for the estate, and recipients remain exposed to creditor claims for two years. When the purpose is to sell the property, formal administration is often the better path despite taking longer. Ask a Florida probate attorney which applies to your estate before listing.
What is an order determining homestead, and do I need one to sell?
It is a probate court order confirming that the property qualified as constitutional homestead under Article X, Section 4 of the Florida Constitution and identifying who takes it. Most Florida title insurance underwriters will not insure a sale of homestead property out of probate without one, and every person holding an interest under that order must join the sale contract and the deed — including a surviving spouse who was never named on title. Obtaining it before listing is far cheaper than discovering the requirement during underwriting.
The owner lived out of state but owned a Miami Beach condo. What now?
You will generally need ancillary administration in Florida. A probate order from the owner's home state has no authority over Florida real estate, so a proceeding is opened under Section 734.102 in the Florida county where the property sits. The ancillary personal representative has the same authority as any Florida personal representative to sell, lease or mortgage the property. Build the extra time into any listing timeline.
Does Florida's Amendment 3 change anything for inherited property?
Potentially, in two ways, and only if it passes on November 3 — most of it would take effect January 1, 2027. First, an heir who intends to make the property their home should note that permanent Florida residency established by December 31, 2026 preserves eligibility for the full expanded homestead exemption, while residency established on or after January 1, 2027 starts at a $50,000 new-resident exemption with a four-year wait. Second, for a family planning to hold and rent, the amendment would cut the non-homestead annual assessment cap from 10% to 5% on non-school levies, limiting how fast the bill compounds over a long hold. Neither changes the reassessment that follows the owner's death.
Should I sell the inherited property now or wait for a better market?
Run the carrying cost honestly before deciding. Holding means absorbing the post-reset tax bill, insurance, and association dues, and any appreciation after the date of death becomes taxable gain because the basis is frozen at that date. It also collides with a slow market: Miami-Dade existing condo supply was 12.1 months in August 2026, the median Miami-Dade seller received 94% to 95% of original list price, and Miami Beach is taking considerably longer than the county to go under contract. Holding makes sense mainly when an heir will genuinely live there and can claim homestead in their own right, or when the family wants a long-term income property and has underwritten the new tax bill rather than the old one.
Tax thresholds, probate rules and market conditions change — if you're reading this later, reach out and I'll pull the current numbers for your specific property. 🔑
Important: I'm a real estate advisor, not an attorney or a CPA. Everything here is general information about how these rules work in Miami-Dade, not legal or tax advice for your family's situation. Probate, homestead and basis questions turn on facts specific to each estate — please work with a Florida probate attorney and a tax professional before acting.
Sources: Step-up in basis, 26 U.S.C. § 1014; long-term holding period for inherited property, 26 U.S.C. § 1223(9); 2026 federal estate and gift tax exemption of $15 million per person made permanent by the One Big Beautiful Bill Act (§ 70106) and indexed for inflation. Florida's prohibition on state estate and inheritance taxes, Fla. Const. art. VII, § 5, with the state's credit-based estate tax ending after the federal credit's repeal in 2005. Save Our Homes assessment limitation of 3% or CPI, whichever is lower, and reassessment at just value on January 1 following a change of ownership; transfers to a surviving spouse excluded from the change-of-ownership definition; statutory exception preserving the capped assessment for an heir who was both a permanent resident of the property at the owner's death and legally or naturally dependent upon the owner; homestead exemption application deadline of March 1. Homestead devise restrictions, Fla. Const. art. X, § 4(c), and intestate/elective treatment under § 732.401, Fla. Stat. (surviving spouse life estate with vested remainder to descendants, or election of an undivided one-half interest as tenant in common). Title underwriting practice requiring a court order determining homestead status before insuring a sale out of probate, with all interest holders joining the contract and deed. Summary administration threshold raised from $75,000 to $150,000 of non-exempt assets effective July 1, 2026 by CS/HB 1337, approved April 29, 2026 as Chapter 2026-57, Laws of Florida, which also raised the disposition-without-administration limit from $10,000 to $20,000; the higher ceiling applies to decedents dying on or after July 1, 2026, with earlier deaths generally remaining under the prior $75,000 limit; summary administration additionally available for an estate of any size where the decedent died more than two years earlier; summary administration does not appoint a personal representative, and § 735.206, Fla. Stat. leaves recipients exposed to creditor claims for two years. Ancillary administration for non-resident decedents, § 734.102, Fla. Stat. Creditor claim limitations, §§ 733.702 and 733.710, Fla. Stat., with recorded mortgages and liens enforceable outside the claims process. Florida Amendment 3 (CS/HJR 1F) on the November 3, 2026 ballot, requiring 60% approval, with most provisions effective January 1, 2027: expanded non-school homestead exemption phased in 2027–2028, non-homestead assessment cap reduced from 10% to 5% on non-school levies, and a new-resident $50,000 non-school exemption with a four-year wait for residency established on or after January 1, 2027; 2026 homestead exemptions totaling $51,411. Market figures from MIAMI REALTORS® + RWorld August 2026 statistics released September 16, 2026 (existing condo supply 12.1 months; median percent of original list price received 95% single-family and 94% condo). Miami Beach city-level days-to-contract figures are third-party estimates from Redfin's 2026 tracking, vary by refresh and property mix, and are not MLS-reported. The property tax illustration uses round hypothetical values and an approximate 2% effective rate as a rule of thumb for a Miami-Dade bill; actual millage varies by municipality and taxing district. Nothing here is an appraisal or a valuation of any specific property.
