Inheriting a Florida Home? How to Avoid Probate and Save Thousands in Taxes
For families in Land O' Lakes and Wesley Chapel, a home is often the largest part of an inheritance. However, without a plan, your heirs could face months of probate court and a massive tax bill.
In 2026, two strategies are essential for protecting your Tampa Bay legacy: the Lady Bird Deed and the Step-Up in Basis.
1. The Lady Bird Deed: Probate’s "Skip" Button
A Lady Bird Deed (or Enhanced Life Estate Deed) acts like a "Transfer on Death" for your house.
The Benefit: It bypasses probate entirely. Your home transfers automatically to your heirs without court interference.
The Control: Unlike other deeds, you keep 100% control while you are alive. You can sell, mortgage, or change beneficiaries in Pasco County at any time without their permission.
The Bonus: It protects your Florida Homestead benefits and property tax caps while you are living.
2. The Step-Up in Basis: Your Heirs' Best Friend
This federal tax rule can save your children tens of thousands of dollars in capital gains taxes when they sell the home.
How it Works: Normally, if you give your kids a house while you are alive, they inherit your original "cost basis" (what you paid for it). If they sell it later, they owe taxes on the decades of appreciation.
The Win: If they inherit the home through a Lady Bird Deed, their tax basis is "stepped up" to the fair market value on the day you pass away.
The Result: If the home is worth $600,000 when they inherit it and they sell it for $600,000, they owe $0 in capital gains tax.
Why It Matters for Tampa Bay Families
With the rapid growth in Wesley Chapel and Land O' Lakes, your home equity has likely soared. Using these tools ensures that equity stays with your family, not with the courts or the IRS.
At MADE Financial Design, we help local families bridge the gap between their legal documents and their financial goals.
