Addressing tax liabilities is an important component of estate administration. Personal representatives administering estates in Florida may need to file income tax returns on behalf of the decedent and the estate itself. If they fail to file the necessary tax returns and use estate resources to cover tax obligations, they could face direct liability for the unpaid amount due.
Income taxes owed by the decedent and the estate may both become the responsibility of the personal representative. Occasionally, they may also need to address estate taxes. Estate taxes can potentially amount to thousands or millions of dollars in taxes due.
When do personal representatives need to retain resources to cover estate taxes?
Only multi-million-dollar estates pay estate taxes
Florida has not collected an estate tax in decades. There are no state-level taxes due based on the value of estate property. However, there may be federal estate taxes to address.
Every year, the federal government has a different exemption threshold that applies for estate tax purposes. In 2026, individual estates with a total value of $15 million or more might be subject to federal estate taxes.
The tax rate that applies can be anywhere from 18% to 40% of the total estate’s value, depending on how much the estate’s value exceeds the exemption threshold. Personal representatives could face significant legal and financial complications if they fail to retain adequate capital to address estate tax obligations.
Estate taxes are often a key consideration when an estate contains businesses, major investments or multiple pieces of real property. Working with an attorney throughout estate administration can help personal representatives limit their exposure and fulfill their obligations.