Wills & Trusts in Florida: What Changed for 2026 Estate Plans
If you have been putting off reviewing your estate plan, 2026 is the year that decision carries real consequences. The landscape governing Florida wills and trusts has shifted on multiple fronts in 2026, from a landmark federal tax overhaul to significant changes in how Florida trustees operate. Whether you own a business, hold real estate across multiple counties, or are building generational wealth in South Florida, understanding what changed protects what you have built.
At Lomba P.A., we bring the same precision to estate planning that we apply to corporate transactions and commercial litigation. Your estate plan is not a formality. It is a legal framework built to protect your wealth, your family, and your long-term interests. Here is what every Florida resident needs to know heading into 2026.
The Federal Estate Tax Exemption Just Changed in a Major Way
The single biggest development affecting Florida wills and trusts in 2026 came from Washington, not Tallahassee. On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. The legislation permanently raised the federal estate and gift tax exemption to $15 million per individual, or $30 million for married couples, effective January 1, 2026. The exemption is indexed for inflation and carries no sunset provision.
Before this law was passed, the estate planning world was bracing for a steep drop. Under the 2017 Tax Cuts and Jobs Act, the elevated exemption was set to expire at the end of 2025 and revert to $7 million per person. That looming cliff created a sense of urgency for thousands of high-net-worth families. The OBBBA eliminated that cliff entirely.
What This Means for Your Current Plan
If your existing will or trust was written before 2018, or if it has not been reviewed since the TCJA passed, it may contain formula clauses that are now outdated. Many older documents were drafted to automatically split assets based on the exemption amount at the time of death. With today's $15 million threshold, those formulas can produce results that no longer match your actual intentions. A trust designed around a $5 million exemption will behave very differently under a $15 million framework.
The OBBBA also preserved portability. A surviving spouse can use a deceased spouse's unused exemption, which means a couple can protect up to $30 million in combined assets beginning in 2026. That is a powerful tool, but it requires proper execution and timely filing to be effective.
The annual gift tax exclusion also increased to $19,000 per recipient in 2026. Married couples can combine their exclusions and give $38,000 per recipient annually without filing a gift tax return or reducing their lifetime exemption.
Florida's Trust Code Got a Significant Overhaul
While federal headlines grabbed most of the attention, Florida made its own meaningful changes to trust administration. On June 20, 2025, Florida's Senate Bill 262 took effect, amending the Florida Trust Code in ways that directly affect trustees, beneficiaries, and anyone with an existing irrevocable trust.
The most significant change involves expanded trustee decanting authority. Trust decanting is the process of transferring assets from one trust into a new or modified trust with different terms. Prior to SB 262, this process was ambiguous about the trustee's role. The new law clarifies that a trustee who decants assets to create a second trust is not considered the settlor of that new trust, which resolves a conflict that previously could have disqualified a trustee from serving under the restructured arrangement.
How Decanting Creates Planning Flexibility
Decanting is now a practical tool for families whose older trusts no longer fit their circumstances. Tax laws change. Family dynamics shift. A trust designed for one generation of needs often becomes a burden rather than a benefit as time passes. SB 262 allows authorized trustees to modify terms, extend trust durations, and redirect assets into supplemental needs trusts, all without starting from scratch or seeking court approval in most situations.
For Florida families with irrevocable trusts written before 2025, these new decanting provisions apply retroactively. That means opportunities you did not have two years ago now exist within your current structure. The key is understanding whether your trustee qualifies as an "authorized trustee" under Florida Statute Section 736.04117 and whether the proposed changes meet the statutory requirements.
SB 262 also clarified the statute of limitations for challenging a trustee's actions. The clock for beneficiary challenges now begins only after the trustee has actually exercised their power and provided formal disclosure. This change protects beneficiaries from being prematurely barred from raising legitimate concerns.
Florida's No-Estate-Tax Advantage Still Stands Strong
One thing that did not change is Florida's extraordinary tax advantage for estate planners. Florida has no state estate tax and no inheritance tax. The Florida Constitution prohibits both. Combined with the new $15 million federal exemption, Florida remains one of the most favorable jurisdictions in the country for transferring wealth across generations.
For most Florida families, federal estate tax exposure is now unlikely. The practical focus for the majority of estates shifts away from tax avoidance and toward probate avoidance, asset protection, and control over how and when beneficiaries receive their inheritance.
For business owners and entrepreneurs, this environment creates a renewed opportunity to build trust structures that simultaneously protect both personal wealth and business interests. Spousal Lifetime Access Trusts (SLATs) and Dynasty Trusts, which Florida allows to run for up to 1,000 years under prior law, remain powerful tools for families whose estates approach or exceed the federal threshold.
Common Execution Failures That Undermine Florida Estate Plans
Legal changes are only part of the story in 2026. A significant share of Florida estate plan failures has nothing to do with new laws. They are execution problems that persist year after year.
Unfunded Trusts
A trust that does not own assets does not avoid probate. Thousands of Florida residents have valid trust documents sitting in a drawer while their bank accounts, investment portfolios, and real estate remain titled in their personal names. When they pass away, those assets go through probate anyway. The trust document is irrelevant if the assets were never transferred into it.
Outdated Beneficiary Designations
Your will does not control assets that pass through beneficiary designations. Life insurance, IRAs, and 401(k) accounts transfer directly to whoever is listed on the beneficiary form, regardless of what your will says. Outdated designations listing an ex-spouse or a deceased relative override your current estate plan entirely.
Out-of-State Plans Used in Florida
If your estate plan was drafted in another state and you now live in Florida, it likely needs to be reviewed by a Florida attorney. Florida has unique homestead rules, spousal rights, and probate procedures that out-of-state documents often fail to address. A will or trust that works perfectly in Georgia or New York may create serious complications in Florida courts.
What the 2026 Florida Probate Rules Look Like Now
No additional Florida Probate Rule amendments took effect in 2026 beyond those established by SB 262 for trust administration. The three primary forms of Florida probate remain formal administration, summary administration, and disposition without administration.
Formal administration is the most common and is required when probate assets exceed $75,000 or when the decedent has been dead for fewer than two years. It takes place in the Circuit Court of the county where the decedent resided. Under Florida Statute Section 733.901, the personal representative is appointed by the court, manages the estate, pays valid creditors, and distributes assets to beneficiaries.
Summary administration is available for smaller estates or when two years have passed since death. It is faster and less expensive than formal administration. For most business owners and families with significant assets, the goal is to structure your estate so that probate is avoided entirely through a well-funded revocable living trust.
A properly structured revocable trust, paired with a pour-over will and updated beneficiary designations, keeps your estate out of the public probate record and puts distribution directly in the hands of your chosen successor trustee.
For government and statutory reference, you can review the current Florida Probate Code under Florida Statutes Chapter 732 and Chapter 733 at the official Florida Legislature website.
Why a Review of Your Florida Estate Plan Cannot Wait
The combination of federal and state changes in 2025 and 2026 means that plans written even three to five years ago may no longer reflect current law or your current circumstances. If your estate plan pre-dates the One Big Beautiful Bill Act, if your trustee's authority was defined under the old trust decanting rules, or if your beneficiary designations have not been audited recently, you are operating on outdated documents.
The clients who benefit most from these changes are the ones who act with precision and urgency. Those who wait discover that outdated formula clauses, unfunded trusts, and misaligned beneficiary designations quietly work against the very goals the plan was meant to protect.
At Lomba P.A., we approach estate planning the way we approach every engagement: with strategy, clarity, and an unwavering focus on outcomes. We help clients avoid probate, shield assets from litigation exposure and creditor claims, and build plans designed for long-term flexibility and control. From revocable trusts and Lady Bird Deeds to offshore asset protection planning, we have seen it all, and we bring the precision each situation demands.
Your estate plan should protect what you have built and reflect who you are today. If it does not, that is the problem we solve.
Contact Lomba P.A. today to schedule your estate plan review. Visit lombapa.com and take the first step toward a plan that is legally sound, commercially smart, and aligned with your long-term goals.
Frequently Asked Questions
What are the key Florida wills and trusts 2026 updates that affect my estate plan?
The most important Florida wills and trusts 2026 updates involve two major changes: the federal estate tax exemption rose to $15 million per person under the One Big Beautiful Bill Act signed July 4, 2025, and Florida's Senate Bill 262 expanded trustee decanting authority effective June 20, 2025. These changes affect how existing trusts are administered, whether older formula clauses still match your intentions, and what planning strategies are now available to Florida families. An estate planning attorney can identify whether your current documents reflect these updates.
What is trust decanting under Florida law and how does it work in 2026?
Trust decanting is the legal process by which an authorized trustee transfers assets from an existing trust into a new or modified trust with updated terms. Under Florida Senate Bill 262, effective June 20, 2025, authorized trustees now have broader authority to decant, including the ability to create supplemental needs trusts and modify beneficiary interests, without being classified as a settlor of the new trust. SB 262 applies retroactively to all Florida-governed trusts. Beneficiaries retain the right to challenge a trustee's decanting decision, but only after the trustee provides formal disclosure, not before.
Does Florida have an estate tax or inheritance tax in 2026?
Florida has no state estate tax and no inheritance tax in 2026. The Florida Constitution prohibits both. The federal estate tax does apply to estates exceeding $15 million per person, as established by the One Big Beautiful Bill Act, but fewer than 0.1 percent of estates nationwide owe any federal estate tax at that threshold. For most Florida residents, planning focuses on probate avoidance, asset protection, and beneficiary control rather than tax minimization. Florida's lack of a state death tax makes it one of the most favorable states for estate planning and generational wealth transfer.
What is the difference between a will and a trust in Florida?
A will in Florida directs how your assets are distributed after death, but it must go through probate, which is a public, court-supervised process governed by Florida Statute Chapter 732. A trust, when properly funded, avoids probate entirely, remains private, and allows a successor trustee to manage and distribute assets without court involvement. Wills are the only documents that allow you to name a guardian for minor children. Trusts take effect immediately upon creation and can manage assets during your lifetime if you become incapacitated. Most comprehensive Florida estate plans include both a revocable living trust and a pour-over will working together.
How long does probate take in Florida, and how can a trust help me avoid it?
Formal probate administration in Florida typically takes six months to two years to complete, depending on the complexity of the estate, creditor claims, and whether the will is contested. A properly funded revocable living trust bypasses the probate process entirely, allowing your successor trustee to distribute assets within weeks rather than months. The keyword is "funded." A trust that was never transferred to actually hold assets does not avoid probate, regardless of how well-drafted the document is. Working with a Florida estate planning attorney to fund your trust at the time of creation prevents this common and costly mistake.
How much does estate planning cost in Florida in 2026?
Estate planning costs in Florida depend on the complexity of your estate and the documents you need. A simple will prepared by an attorney typically costs between $300 and $800. A comprehensive trust-based estate plan, including a revocable living trust, pour-over will, durable power of attorney, and healthcare directive, generally ranges from $1,500 to $5,000 for most families. Complex plans involving irrevocable trusts, business succession, or offshore asset protection cost more. By comparison, formal probate administration for a $500,000 estate can reach $15,000 or more in statutory attorney fees alone. A well-structured estate plan almost always costs far less than the probate process it eliminates.
Do I need to update my Florida will or trust if the estate tax laws changed in 2026?
Yes, in many cases, a review is warranted even if your estate does not approach the $15 million exemption threshold. Older wills and trusts often contain formula clauses tied to the federal exemption amount at the time of death. Under the new $15 million threshold established by the One Big Beautiful Bill Act, those formulas can produce unintended results, such as overfunding a bypass trust or restricting a surviving spouse's access to assets. Additionally, Florida's SB 262 trust decanting changes apply retroactively and may open up new planning options within your existing trust structure. Any plan that has not been reviewed within the last three years, or that predates 2018, deserves a professional evaluation.