Inheriting a home in South Florida is one of those situations where grief and logistics arrive at the same time. The property has real value — in today's market, a Broward or Palm Beach home can easily represent $500,000 or more — but before you can sell it, you need to understand what you actually own and how to transfer it properly. This guide covers the process as it works in Florida in 2026, without the legal jargon.
Does the Property Have to Go Through Probate?
The first question to answer is whether probate is required at all. Not every inherited property goes through the courts. If the deceased held title in a revocable living trust, the property transfers to beneficiaries privately, without probate. A Lady Bird deed (Florida's enhanced life estate deed) achieves the same result — the home passes directly at death, bypassing the court process entirely.
However, if the home was titled solely in the deceased's name with no co-owner or beneficiary designation, Florida probate is required before the property can be sold. According to data cited by ListWithClever, real estate accounts for approximately 75% of all assets that pass through Florida probate — which tells you how common this situation is. You cannot simply list and sell the property until the court formally transfers title to you.
Florida's Two Probate Paths — and How Long Each Takes
Florida offers two main probate procedures for real estate, and which one applies depends on the estate's value and when the person died.
Summary administration is available when the total estate value is under $75,000, or when the deceased passed away more than two years ago (in which case creditor claims are time-barred). This streamlined process typically takes two to three months and involves far less court oversight. If your situation qualifies, it can save significant time and legal fees.
Formal administration is required for larger estates and takes a statutory minimum of six months — because Florida law gives creditors that window to file claims against the estate. In practice, formal probate often runs nine to twelve months, and can extend longer if there are multiple heirs, disputes over the will, or outstanding debts. Per the Florida Bar, probate costs typically run 3–5% of the estate value, covering attorney fees, court filing fees, and personal representative compensation.
One important planning note: a Lady Bird deed or revocable trust drafted before death can eliminate probate entirely for the next generation. If you inherit a property that goes through probate now, consider these tools for your own estate planning afterward.
The Step-Up in Basis: Your Most Valuable Tax Benefit
If there is one rule that every heir needs to understand before selling, it is the stepped-up cost basis. When you inherit real property, the IRS resets your cost basis to the property's fair market value on the date of the original owner's death — not the price they paid for it decades ago.
Here is what that means in practice. Suppose your parent paid $180,000 for a Broward home in 1998, and its value at the time of death was $550,000. Your cost basis as the heir is $550,000. If you sell the property for $570,000, your taxable gain is only $20,000 — not the $390,000 gain it would have been from the original purchase price. In many cases, heirs who sell promptly after probate owe little to no capital gains tax at all.
This benefit was preserved permanently by the One Big Beautiful Bill Act, signed into law July 4, 2025. Combined with Florida's complete absence of a state capital gains, inheritance, and estate tax, the stepped-up basis makes Florida one of the most favorable places in the country to inherit and sell real estate. Federal capital gains taxes still apply to any appreciation above the stepped-up value, at rates of 0%, 15%, or 20% depending on your income bracket and filing status — consult a tax professional for your specific situation.
What Happens to the Homestead Exemption
If the deceased held a Florida homestead exemption, that exemption ends at death. The property is reassessed at full market value in the following tax year, and the Save Our Homes cap — which limited annual increases to 3% — is removed. In South Florida's high-value market, this can mean a significant jump in property taxes, sometimes doubling or tripling the previous bill.
If you are an heir who intends to move into the home and use it as your primary residence, you can apply for your own homestead exemption. The deadline is March 1 of the first year you occupy the property. Missing that window means waiting a full year. If you plan to sell rather than occupy, budget for the reassessed tax amount when calculating your holding costs during probate.
Should You Sell As-Is or Fix It Up First?
Inherited homes frequently have deferred maintenance — decades of small repairs that never happened, outdated kitchens, aging roofs, or electrical systems that no longer meet code. Before deciding how much to invest, understand what the current South Florida market will actually reward.
In Broward County's under-$500,000 segment, inventory sits at approximately 9.4 months of supply, giving buyers meaningful leverage. A property that needs significant work will attract investor-level offers — typically 70–80 cents on the dollar. A clean, well-priced home in good condition will reach retail buyers who pay closer to full market value. The math depends on your renovation costs, your timeline, and how quickly you need to liquidate. Call or text Michael at 954-715-5668 for a frank assessment of what your specific property is worth in each scenario.
Navigating Multiple Heirs and Title Issues
When a property passes to multiple heirs — siblings, a mix of children and step-children, or beneficiaries named in a will — everyone must agree to sell before the property can be listed. If one heir wants to keep the property and another wants to sell, Florida law allows either party to file a partition action, which forces a court-supervised sale. This process is slow and expensive, and the result often produces a lower net for everyone involved. Getting aligned early — ideally with the help of an estate attorney — is almost always worth the conversation.
Title issues are also more common with inherited properties than standard sales. Unknown liens, unpaid property taxes, or errors in the chain of title from prior transfers can all delay closing. A full title search early in the process will surface any clouds on title before you go under contract, saving you from a blown deal later.
Your Net: What to Expect at Closing
Once title is clear and you're ready to sell, the costs are the same as any Florida seller. On a $550,000 South Florida property, here is a realistic net estimate:
- Agent commissions (5.5%): ~$30,250
- Documentary stamp tax ($0.70/$100 in Broward/Palm Beach): ~$3,850
- Owner's title insurance + settlement fees: ~$2,800
- Property tax proration (partial year at 1.5%): ~$2,750
- Inspection/repair credit contingency (0.75%): ~$4,125
- Recording, wire, and misc. fees: ~$500
Total estimated seller costs: ~$44,275 — approximately 8% of the sale price. Net proceeds before any outstanding estate debts or liens: approximately $505,725. Any federal capital gains tax on appreciation above your stepped-up basis would be owed at tax time, not at the closing table. A personalized net sheet takes about five minutes — call or text Michael at 954-715-5668 and we will walk through it together.