One of the most common questions families ask after a loved one passes is: Does the state take part of my inheritance in Florida? The short answer is no—Florida does not impose a state inheritance tax or estate tax. However, there are certain circumstances where assets may be claimed by the state or reduced by taxes, fees, or creditor claims. Let's break it down so you know exactly what to expect.

Florida Has No Inheritance or Estate Tax

Many states across the U.S. impose either an inheritance tax (paid by the heir) or an estate tax (paid by the estate before distribution). Florida does not have either. This means that beneficiaries in Florida generally receive their inheritance free from state-level inheritance or estate taxes.

What About Federal Estate Tax?

While Florida doesn't take a cut, the federal government may. The federal estate tax applies only to very large estates. For 2025, estates valued over $13.61 million may owe federal estate tax. This affects only a small percentage of estates, so most Florida families will not be impacted. This is set to increase to $15 million January 1, 2026, and subject to increase for inflation.

When Can the State of Florida Claim Assets?

Although Florida doesn't take a percentage of every estate, there are specific situations where the state may claim property:

1. If There Are No Heirs (Escheat Law)
   If someone dies without a will and without legally recognized heirs, their estate may “escheat” to the State of Florida. This means the state becomes the heir of last resort.

2. Unclaimed Property
   If heirs cannot be located, assets may be transferred to the Florida Department of Financial Services as unclaimed property until the rightful heir steps forward.

3. Medicaid Estate Recovery
   In some cases, the state can seek reimbursement for Medicaid benefits paid during the decedent's lifetime, though this applies under specific conditions.

Other Factors That Reduce Inheritance

Florida probate attorney discussing inheritance matters with client.

Even though Florida doesn't tax inheritances, beneficiaries should be aware of other costs that can reduce what they ultimately receive:

• Probate Costs and Attorney's Fees – Probate is often required in Florida, and while necessary, it involves court fees and legal costs.

• Creditor Claims – If the decedent owed debts, creditors have the right to make claims against the estate before distribution.

• Federal Taxes on Retirement Accounts – Inherited IRAs and retirement accounts may be subject to income taxes when distributions are taken.

Why Consult a Florida Probate Attorney?

Because inheritance laws involve more than just taxes, consulting with a Florida probate attorney is the best way to protect your rights. An attorney can:

• Ensure the estate follows Florida probate laws.

• Identify and resolve creditor claims properly.

• Prevent unnecessary delays and disputes.

• Advise on strategies to protect family assets.

Final Thoughts

So, does the state take part of your inheritance in Florida? Not through taxes. Florida does not impose estate or inheritance tax. However, assets can be reduced by probate costs, creditor claims, federal estate tax (for very large estates), or in rare cases, escheat to the state if no heirs exist. Speaking with a Florida probate attorney ensures you understand how these rules apply to your situation and helps you protect your family's legacy.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Gold Legacy Law. For legal advice regarding your personal situation, please contact our office to schedule a consultation.