Florida imposes no state estate tax, inheritance tax, or gift tax of its own, so the only death-transfer tax a Boca Raton resident needs to plan around is the federal estate and gift tax. That federal tax applies a unified system to lifetime gifts and transfers at death, but it only reaches estates above a generous exemption amount, which means most Florida families owe nothing. For higher-net-worth residents, especially those in second marriages, the real planning work is using gifting strategies to keep assets below that federal threshold while protecting children from a prior relationship.
Does Florida Have an Estate Tax or Gift Tax?
No. Florida repealed its separate estate tax years ago, and the state constitution actually prohibits a state inheritance or estate tax. Article VII, Section 5 of the Florida Constitution bars the legislature from levying an inheritance tax or any estate tax beyond what could be absorbed by the now-defunct federal “pickup” credit. When Congress phased out that credit in 2005, Florida’s estate tax effectively went to zero and has stayed there.
This is one of the genuine financial reasons retirees relocate to Boca Raton, Delray Beach, and the rest of Palm Beach County. A New York or New Jersey resident may owe a meaningful state estate tax on top of the federal bill; a Florida resident does not. But establishing Florida domicile is not automatic. If you split the year between two states, the state you left may still claim you as a taxable resident, and that fight usually happens after you die, when you can no longer testify about your intent.
Proving Florida Domicile
To make your Florida residency stick for tax purposes, the practical steps matter:
- File a Declaration of Domicile under Florida Statutes Section 222.17 with the Palm Beach County Clerk.
- Apply for the Florida homestead exemption on your Boca Raton residence and claim it on your property tax bill.
- Register to vote in Florida, obtain a Florida driver’s license, and register vehicles here.
- Update your estate planning documents to recite Florida residency and name Florida fiduciaries.
- Spend more than half the year in Florida and keep records that prove it.
The more of your financial and personal life that points to Florida, the harder it is for a former state to tax your estate.
The Federal Estate and Gift Tax: What Actually Applies
Even with no state tax, the federal estate and gift tax follows you to Florida. It is a “unified” tax, meaning lifetime gifts and transfers at death draw from the same lifetime exemption. For 2025, that exemption is $13.99 million per person, and the top tax rate on amounts above it is 40 percent. A married couple can shelter roughly twice that figure with proper planning.
Two features of federal law do most of the heavy lifting for Florida families:
The Annual Gift Tax Exclusion
Each year you may give away a set amount to as many individuals as you like without filing a gift tax return or using any of your lifetime exemption. For 2025 that annual exclusion is $19,000 per recipient ($38,000 for a married couple who elect to split gifts). These gifts simply leave your estate, tax-free, year after year. A grandparent funding 529 college plans for several grandchildren can move substantial wealth this way over a decade.
Portability and the Marital Deduction
The unlimited marital deduction lets you leave any amount to a U.S.-citizen spouse free of estate tax. And under “portability,” a surviving spouse can inherit the deceased spouse’s unused exemption by filing IRS Form 706. These tools are powerful, but in second marriages they create a tension we will return to: leaving everything to a new spouse defers tax, yet it can also disinherit your own children if the surviving spouse later changes their plan.
Why the 2026 Sunset Makes Gifting Urgent
The historically high exemption is scheduled to drop. Absent new legislation, the federal estate and gift tax exemption is set to fall by roughly half at the start of 2026, returning to an inflation-adjusted figure in the neighborhood of $7 million per person. The IRS has confirmed there will be no “clawback,” meaning gifts you make under today’s larger exemption are protected even if the exemption later shrinks.
In plain terms: if your estate is large enough to be exposed, the window to lock in today’s exemption through lifetime gifting may be closing. Residents with estates in the $7 to $14 million range are precisely the ones who should be running the numbers now, not after the rules change.
Gifting Strategies That Work for Florida Residents
Below are the strategies we most often build for Boca Raton clients. The right mix depends on the size of your estate, your liquidity, and, in blended families, who you want protected.
- Annual exclusion gifting. The simplest and most underused tool. Systematic gifts of $19,000 per recipient remove both the principal and all future appreciation from your taxable estate.
- Direct payment of tuition and medical bills. Under Internal Revenue Code Section 2503(e), amounts paid directly to a school or medical provider are not gifts at all, regardless of size. Pay the university or hospital directly, not the relative.
- Irrevocable life insurance trust (ILIT). Owning life insurance inside an ILIT keeps the death benefit out of your taxable estate, which can fund liquidity for heirs without inflating the estate that gets taxed.
- Spousal lifetime access trust (SLAT). One spouse gifts assets into an irrevocable trust for the other spouse, using exemption now while keeping indirect access to the funds. Popular ahead of the 2026 sunset.
- Grantor retained annuity trust (GRAT) and qualified personal residence trust (QPRT). These freeze the value of appreciating assets or a home, passing future growth to heirs at a discounted gift cost.
- Charitable strategies. Charitable remainder trusts and donor-advised funds remove assets from the estate while producing income or income-tax deductions.
For clients who need to provide for a disabled or aging family member without disqualifying them from needs-based benefits, a pooled income trust can hold assets for that beneficiary’s benefit while preserving Medicaid eligibility. Our colleagues handle these in New York frequently; you can read how a is structured to see the mechanics, which translate well to Florida planning. Similarly, transferring a residence while keeping the right to live in it for life is a common move; the framework behind mirrors the Florida QPRT and life-estate-deed approach.
Estate Tax and Gifting in Blended Families and Second Marriages
This is where general advice fails Boca Raton couples. The unlimited marital deduction tells you to leave everything to your spouse and defer all tax. But if that spouse is your second husband or wife, and you have children from a first marriage, an outright bequest hands your new spouse full control of assets you intended for your kids. When the survivor remarries or rewrites their will, your children can be cut out entirely, and the law generally lets that happen.
The classic solution is a QTIP trust (qualified terminable interest property trust). A QTIP lets you:
- Provide your surviving spouse income from the trust for life, so they are cared for.
- Defer estate tax through the marital deduction, since QTIP property qualifies.
- Lock in who receives the remaining principal when your spouse dies, typically your own children.
The QTIP gives your spouse comfort without giving away your children’s inheritance. It is one of the few tools that satisfies both the tax goal and the family-protection goal at the same time.
Florida’s Spousal Rights Complicate the Picture
Florida law gives a surviving spouse rights you cannot ignore, even with the best gifting plan. Under Florida Statutes Section 732.2065, a surviving spouse is entitled to an elective share of 30 percent of the deceased spouse’s “elective estate,” which reaches well beyond the probate estate to include many lifetime transfers. A spouse also has homestead rights under Article X, Section 4 of the Florida Constitution that can override your will’s disposition of the marital home.
For second marriages, this means a do-it-yourself gifting plan can backfire: aggressive lifetime gifts to your children may still be pulled back into the elective estate, and the home you “left” to your kids may instead pass to your surviving spouse for life. A well-drafted prenuptial or postnuptial agreement waiving elective-share and homestead rights is often the cornerstone that makes everything else work. Without it, the statute, not your intentions, controls.
Putting the Plan Together
A sound Florida estate and gifting plan usually layers several documents: a revocable living trust to avoid probate, a pour-over will, durable power of attorney, health care surrogate, and, for taxable estates, one or more irrevocable trusts to capture today’s exemption. In blended families, a marital agreement and a QTIP structure sit at the center. None of these works in isolation, and a gift made without coordinating the elective share or the 2026 sunset can do more harm than good.
Our firm builds these plans for residents across Palm Beach County. You can learn more about our approach to , review how we draft wills and trusts, or see what to expect from Florida probate if a loved one has already passed. When you are ready to talk specifics, contact our Boca Raton office to schedule a consultation.
The short version: Florida spares you a state estate tax, but it does not spare you the federal one, the 2026 sunset, or your spouse’s statutory rights. Thoughtful gifting, paired with the right trusts and a clear marital agreement, is how Boca Raton families keep more wealth in the bloodline and out of the IRS’s reach.
Frequently Asked Questions
Does Florida have an estate tax or inheritance tax?
No. Florida has no state estate tax, inheritance tax, or gift tax, and the Florida Constitution prohibits one. The only death-transfer tax that applies to Florida residents is the federal estate and gift tax, which only affects estates above the federal exemption (about $13.99 million per person in 2025).
How much can I gift each year without paying gift tax?
For 2025, you can give up to $19,000 per recipient per year under the annual gift tax exclusion without filing a gift tax return or using any lifetime exemption. A married couple can give $38,000 per recipient by electing to split gifts. Direct payments of tuition or medical bills are unlimited and not treated as taxable gifts.
Why is 2026 important for estate tax planning?
The federal estate and gift tax exemption is scheduled to drop by roughly half at the start of 2026, falling to around $7 million per person unless Congress acts. The IRS has confirmed there is no clawback, so gifts made under today’s higher exemption are protected. Higher-net-worth Florida residents may want to use the larger exemption through lifetime gifting before it shrinks.
How can a second marriage affect my estate plan in Florida?
Leaving everything outright to a new spouse can unintentionally disinherit children from a prior marriage, because the surviving spouse controls the assets afterward. A QTIP trust provides your spouse income for life while guaranteeing that the remaining principal passes to your children. Florida’s spousal elective share (30 percent under Section 732.2065) and homestead rights can also override your wishes unless addressed with a prenuptial or postnuptial agreement.
Do I still owe federal estate tax if I move to Florida?
Yes. Federal estate and gift tax applies regardless of which state you live in. Moving to Florida only eliminates state-level estate tax. To benefit, you must establish genuine Florida domicile, by filing a Declaration of Domicile, claiming the homestead exemption, and shifting your financial and personal ties to Florida, so a former high-tax state cannot continue to claim you.
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For more on our Florida practice, see our overview of Florida estate planning. Morgan Legal Group's affiliated New York office also handles .
