Florida Estate Planning — What Retirees Need to Know in 2026
Florida is one of the more retiree-friendly states when it comes to death taxes — no state estate tax and no inheritance tax. Probate costs 3–6% of your gross estate and takes 6–12 months on average — costs that can be avoided with the right documents in place. Florida recognizes Lady Bird Deeds, giving residents cost-effective ways to transfer real property outside of probate. Florida uses probate-only Medicaid estate recovery, meaning assets transferred via TOD deed or trust generally avoid recovery claims.
Key Florida Estate Planning Facts for 2026
| Topic | Florida Rule | Risk Level |
|---|---|---|
| State Estate Tax | None | Low |
| State Inheritance Tax | None | Low |
| Probate Cost Estimate | 3–6% · 6–12 months | Moderate |
| Medicaid Look-Back Period | 60 months (5 years) for asset transfers | High |
| Homestead Exemption | Unlimited | Protective |
| Lady Bird Deeds | Yes | Protective |
| TOD Deeds | No | Not Available |
| Asset Protection Trust | No | Gap |
| Power of Attorney | notarization required; 2 witness(es) required | Required |
Florida Probate: What It Costs and How to Avoid It
Colorado uses the Uniform Probate Code, which allows unsupervised administration and is generally less adversarial than states like California or Florida. Even so, probate still costs 3–6% of gross estate value and takes 6–12 months on average.
- Revocable Living Trust Assets properly funded into a trust pass outside probate and remain private. Typical cost range: $2500–$5000.
- Joint Ownership Planning Joint tenancy structures can avoid probate but may create tax or creditor exposure. Review before implementing.
*Estimates derived from Florida probate and Medicaid data. Educational use only.
Medicaid Asset Protection: Florida's 60-Month Rule Explained
Florida follows federal Medicaid rules with a strict 60-month look-back period. Any asset transfer for less than fair market value within that window can trigger a penalty period. Florida is an income cap state — if your gross income exceeds $2,982/month, you must use a Qualified Income Trust (Miller Trust) to qualify.
- Lady Bird Deed Lady Bird Deed: keeps home out of probate estate; Medicaid-safe in probate-only state. Grantor retains full control to sell/mortgage without beneficiary consent.
- Medicaid Trust Planning Assets placed in a properly structured irrevocable trust may be protected after the 60-month look-back expires.
- Spousal Asset Protection Community spouse resource allowance for 2026: $162,660.
Florida Estate Planning Checklist — What to Do Next
| Priority | Action | Cost Range | Impact |
|---|---|---|---|
| High | Update all beneficiary designations | $0 | Avoids unintended probate transfer |
| High | Execute Durable Power of Attorney | $350–$630 | Protects during incapacity |
| Medium | Create Revocable Living Trust | $2500–$5000 | Full probate avoidance |
| Medium | Elder Law Consultation | $300–$500 | Reduce Medicaid exposure |