The single largest transfer of wealth in American history is already underway. Over the next 25 years, trillions of dollars in assets, much of it tied up in family homes, will pass from one generation to the next. But here’s the uncomfortable truth: for many families in Florida, the inheritance of that beloved Jupiter or Palm Beach Gardens home won’t go as smoothly as expected.

A recent realtor.com article, “Americans Are Counting on an Inheritance Instead of Saving—But Family Homes Could Be a Complication,” hits the nail on the head. Without proper estate planning, that beachside cottage or Abacoa bungalow could become a financial and emotional landmine for heirs.

The Silent Threat: Debt and Equity Drain

For many retirees, their home is their greatest source of wealth; and their greatest temptation. Rising living costs, inflation, and the staggering price of long-term care push many older Floridians to borrow against home equity. Reverse mortgages and HELOCs can provide needed liquidity, but they come with a trade-off: less inheritance, or sometimes none at all.

If mom or dad takes out a reverse mortgage and passes away, the lender may require the sale of the property to repay the loan. What was once imagined as “the family home forever” could be gone before anyone even lists it on Zillow.

Florida Example:

We recently worked with a Jupiter family whose mother had quietly drawn a reverse mortgage to help pay for assisted living. When she passed, her children expected to inherit her Tequesta home free and clear. Instead, they faced a $280,000 loan balance that wiped out most of the property’s equity.

Probate and Title Trouble

If a Florida home isn’t properly titled,  for example, placed in a revocable living trust or transferred via a Lady Bird Deed (an enhanced life estate deed permitted under Florida law), it will likely go through probate. That means months of court delays, attorney’s fees, and potential family conflict.

If one sibling wants to sell and another wants to keep the property, a probate judge may order a sale of the home. And that’s before considering disputes over who paid what for upkeep, taxes, or renovations.

A carefully drafted estate plan can prevent this. A trust or transfer-on-death arrangement ensures the home passes directly to the chosen beneficiaries, skipping the probate line entirely.

The Hidden Cost: Property Taxes and Maintenance

Inheriting a home is not the same as inheriting a bank account. Florida’s property taxes can reset to market value upon transfer, especially if the homestead exemption is lost. That new tax bill can shock heirs into selling what they intended to keep.

Even if the house is mortgage-free, heirs still need to fund insurance, maintenance, and repairs. Mold, hurricane prep, roof replacements — they all add up fast under Florida’s sun and humidity.

Pro Tip from Welch Law:

If your goal is to keep the home in the family, your estate plan should include provisions or funding strategies (such as a trust reserve or life insurance) to cover property taxes and maintenance for at least several years after death.

The Florida Factor

Florida’s probate process, though more streamlined than some states, can still be a drain on time and money. Counties like Palm Beach and Martin often require formal probate administration for homes exceeding $75,000 in value unless the property is held in a trust or via enhanced life estate deed.

It’s also critical to consider homestead protection. Florida’s constitutional homestead laws can shield a home from creditors, but they can also limit how it passes at death if a surviving spouse or minor child exists. These nuances make estate planning not just advisable, but essential.

Estate Planning: The Antidote to Inheritance Chaos

The real solution isn’t crossing your fingers and hoping the home “just transfers.” It’s having a Florida estate planning attorney design a clear, binding plan. That plan should:

• Specify how and to whom the property passes.

• Minimize or eliminate probate.

• Address mortgage debt, equity loans, and taxes.

• Protect against family disputes through transparent communication and legal clarity.

A solid Florida estate plan often includes:

• A revocable living trust to hold real property.

• A pour-over will to capture any assets left outside the trust.

• A durable power of attorney for managing property during incapacity.

• A healthcare surrogate designation for medical decision-making.

When structured properly, this kind of planning keeps the family home in the family — not in the hands of creditors, courts, or cash buyers looking for a quick deal.

Don’t Count on an Inheritance — Create One

Relying on an inheritance as your financial plan is like building a house on shifting sand. Circumstances change, debts mount, and property values fluctuate. An inheritance should be a bonus, not a lifeline.

For parents, estate planning ensures the home you worked for remains a blessing, not a burden. For children, it provides clarity, protection, and a lasting connection to family roots.

At Welch Law, PLLC, we help Jupiter and Palm Beach County families protect their most meaningful asset — their home — through strategic, Florida-specific estate planning. Whether it’s a beachside condo, a family compound in Admiral’s Cove, or a starter home in Abacoa, our goal is the same: safeguard your legacy and simplify the path for those you love.

By:  Edward J. Welch, Esq. ||| Estate Planning | Wills | Trusts | Asset Protection | Welch Crypto Trust™

If you would like to discuss your legacy options with an estate planning attorney in Jupiter or Palm Beach Gardens, Florida, schedule a complimentary call with Edward J. Welch at Welch Law, PLLC.  At Welch Law, WE WANT TO DRAFT YOUR LEGACY!

Reference: realtor.com (September 19, 2025) “Americans Are Counting on an Inheritance Instead of Saving—But Family Homes Could be a Complication"