Estate & Inheritance Planning: New York Estate Tax vs. Florida
Why many retirees re-paper wills and trusts after a move—plus titling and homestead nuances
Relocating from New York to Florida can simplify income taxes—but it also changes your estate plan. New York has a state estate tax; Florida does not. Florida also has unique homestead protections and spousal rights that affect how you title your home and who inherits it. That’s why so many retirees re-sign wills, trusts, and deeds once they settle in the Sunshine State.
This guide explains the key differences and a practical checklist to make your plan “Florida-correct.”
1) Taxes at death: NY vs. FL (big picture)
New York: Has a state estate tax with an exclusion amount (and a notorious “cliff” if your taxable estate exceeds the exclusion). Depending on your net worth, planning can involve credit shelter trusts, charitable gifts, or lifetime strategies to avoid falling off the cliff.
Florida: No state estate or inheritance tax. Only the federal estate and gift tax rules apply. For many families, moving to Florida removes one major state-level death tax—but you still need a Florida-compatible plan to avoid probate headaches.
Why it matters: Your New York will or trust probably assumed NY rules. After you change domicile, you’ll want documents that name Florida as your domicile, follow Florida formalities, and align with Florida homestead law.
2) Homestead: Florida’s crown jewel (and a planning trap if you ignore it)
Florida’s homestead is more than a property-tax term. It touches creditor protection, transfer restrictions, and spousal rights—and it can trump your will if you’re not careful.
Creditor protection: Your primary residence may have significant protection from certain creditors while you live and for your surviving spouse/minor kids.
Descent & devise restrictions: If you’re married or have minor children, you can’t freely leave the homestead to anyone you want. Typically, a surviving spouse has strong rights (e.g., life estate or option to take undivided interest).
Property-tax benefits: Filing the Homestead Exemption lowers your property’s taxable value and triggers the Save Our Homes cap (limiting annual assessment increases). That’s separate from estate planning—but the homestead status influences how you plan the home’s inheritance.
Action: Before you rely on an old will, have a Florida attorney confirm that your intended heir can legally receive the homestead the way you think.
3) Spousal rights you must respect (even with a will)
Elective share: In Florida, a surviving spouse can claim an elective share (generally 30% of the elective estate), even if the will says otherwise.
Homestead spouse/minor-child rules: As noted, you can’t disinherit a spouse or minor child from homestead in most cases.
Pre- or post-nuptial agreements: If you want to opt out of default spousal rights, you need a valid marital agreement that satisfies Florida law.
Translation: Don’t count on a New York-drafted will to “override” Florida’s spouse protections.
4) Titling strategies: get probate-smart and Florida-friendly
How an asset is titled often matters more than what your will says:
Tenancy by the Entirety (TBE): Married couples can title Florida real estate and many financial accounts this way for survivorship and potential creditor advantages.
Revocable Living Trust: A Florida-sited revocable trust can:
Avoid Florida probate on the assets titled into it,
Coordinate homestead planning (if drafted correctly), and
Keep incapacity and successor-trustee transitions smooth.
Pay-on-Death (POD) / Transfer-on-Death (TOD): Useful for bank/brokerage accounts to avoid probate—but coordinate with the trust so you don’t break your tax or charitable plan.
Lady Bird deed (Enhanced Life Estate): Lets you keep control during life and pass the home automatically at death, often preserving homestead benefits and avoiding probate. It’s popular in Florida—but it must be drafted by counsel who understands homestead rules.
Out-of-state property: If you’re keeping a New York property, using your Florida trust to hold title can help you avoid ancillary probate in NY.
5) Trusts: when they still matter in tax-light Florida
Even without a state estate tax, trusts can be valuable for:
Second marriages & blended families (control who benefits and when)
Asset protection for heirs (spendthrift or lifetime trusts)
Special-needs planning
Advanced tax planning if your estate may approach federal thresholds or includes large IRAs, real estate portfolios, or a business
If you used credit shelter/AB trusts in New York purely for state-tax reasons, your Florida counsel may simplify or modernize the structure—while preserving protection or control where you still want it.
6) Practical checklist when you switch domicile to Florida
Re-paper core documents
Florida Last Will & Testament
Revocable Living Trust (Florida-compliant), with updated funding plan
Durable Power of Attorney, Health Care Surrogate, HIPAA, and Living Will (Florida forms are very specific)
Align your home to your plan
Confirm homestead status, spousal rights, and the intended transfer path
Consider Lady Bird deed or trust titling to avoid probate (and keep homestead benefits)
Retitle and beneficiary-audit
Update bank/brokerage registrations (TBE, trust, POD/TOD)
Review retirement account beneficiaries (spousal rights + SECURE Act distribution rules)
Sync life insurance and annuities with the new plan
Clean up NY connections
Change domicile markers (license, voter reg, banking, doctors, club memberships)
If you still own NY real estate, decide whether it sits in your Florida trust to avoid ancillary probate
Homestead & portability
File the Homestead Exemption and, if applicable, Save Our Homes portability when you buy/occupy your Florida primary residence
Coordinate with taxes
Your estate plan should match your income-tax posture (residency, day-count, and NY-source income if any).
If you still might be subject to NY estate tax (e.g., significant NY situs assets), your attorney/CPA can integrate that into the plan.
7) Common mistakes (and easy fixes)
Relying on a NY will that ignores Florida homestead rules → update the plan with Florida counsel.
Forgetting to fund the trust → re-title real estate and accounts per your attorney’s funding letter.
Conflicting beneficiaries (IRAs/insurance vs. trust) → audit and correct.
Disinheriting a spouse on paper → Florida elective share will upend your plan; consider a marital agreement if appropriate.
Leaving NY property outside your FL trust → risk ancillary probate in New York.
Bottom line
Florida removes the state estate tax friction, but adds powerful—and sometimes strict—homestead and spousal-rights rules. The fix is straightforward: re-paper your wills, trusts, and deeds under Florida law, retitle accounts and real estate to avoid probate, and coordinate beneficiaries so everything pays out exactly how you intend.
Want a quick, attorney-ready inventory and funding map (deeds, beneficiary changes, titling, and a homestead pathway) tailored to Tampa Bay and your current assets? I’ll assemble it and connect you with a Florida board-certified estate attorney to finalize.
Fernanda Stucken — Tampa Bay Realtor
📧 contact@fernandastucken.com | 📞 (347) 216-6620
This article is educational, not legal or tax advice. Always consult a Florida estate-planning attorney and your CPA for your specific situation.
