Passing a home to loved ones should be an act of care and foresight. Yet for many Florida families, the transfer of a home after death leads to unexpected financial strain, confusion, and vulnerability. Two issues arise again and again: a sudden increase in property taxes and an increased risk of financial scams that target families during emotionally stressful transitions.
Understanding how joint ownership works under Florida law is essential, but so is recognizing when to pause, verify information, and seek guidance before moving money or signing documents. These Essential Estate Planning Tips are especially important during estate transitions, which are among the most common moments when well-meaning families are pressured into costly mistakes.
Why Property Taxes Often Increase After a Death
Florida homeowners benefit from the Save Our Homes cap, which limits how much a homestead’s assessed value may increase each year. Over time, this cap can create a significant gap between the home’s market value and its taxable value, resulting in substantial annual tax savings.
When a homeowner passes away, however, those protections may not automatically carry over. If the transfer of ownership is considered a change of ownership under Florida law, the county property appraiser may reset the assessed value to full market value as of January 1 of the following year. For heirs, this can result in a sharp and unexpected increase in property taxes, sometimes making it difficult to keep the home at all.
When Joint Ownership Can Preserve the Save Our Homes Cap
In limited circumstances, joint ownership can help preserve existing property tax benefits. Forms of ownership such as joint tenancy with right of survivorship or tenancy by the entirety may allow a surviving owner to retain the Save Our Homes cap if that person already qualifies for homestead and continues to use the property as a primary residence.
To preserve the cap, the surviving owner must take timely action. Homestead and portability applications must be filed correctly and by the applicable deadlines, typically March 1 following the year of death. Missing these deadlines can result in the permanent loss of the cap, even if the ownership structure was otherwise appropriate.
Why Joint Ownership Is Often Riskier Than It Appears
Although joint ownership may appear simple, it carries immediate legal consequences that many homeowners do not fully consider. Once another person is added to a deed, that person gains present ownership rights, not just a future interest.
This can expose the home to risks unrelated to the original owner’s intentions. The co-owner’s creditors, lawsuits, divorce proceedings, or financial instability may affect the property. In addition, adding a non-spouse to a deed may be treated as a taxable gift for federal purposes and can create complications for Medicaid eligibility due to the five-year look-back period.
What was intended as a planning shortcut can instead reduce control, increase exposure, and limit future options.
Why Estate Transitions Are a Prime Target for Scams
Families navigating estate matters are often under emotional and time pressure, which makes them particularly vulnerable to scams. Across Florida, there has been a noticeable increase in individuals posing as representatives of banks, title companies, insurance providers, or government agencies during estate and property transfers.
These scams frequently involve urgent demands to move money, pay fees, or sign documents quickly. The goal is to prevent the recipient from slowing down long enough to verify the request.
A critical rule applies in every situation: before moving any money, signing documents, or transferring property, stop and independently verify the request. If someone claims to represent a bank, financial institution, or government office, families should contact that organization using a known and trusted phone number — not the contact information provided by the caller or email sender.
Legitimate institutions will never discourage verification or pressure immediate action.
How Thoughtful Estate Planning Reduces Scam Risk
Clear estate planning reduces confusion — and confusion is where scams thrive. When decision-makers are clearly identified and authority is properly documented, families are less likely to feel rushed or uncertain when financial questions arise.
Tools such as revocable living trusts, enhanced life estate deeds (Lady Bird deeds), and properly coordinated ownership planning can reduce the need for urgent decisions and limit opportunities for outside interference. These tools also provide clarity to banks, title companies, and other institutions, making it easier to identify legitimate authority.
Why Professional Guidance Matters
Florida homestead law, property tax rules, and ownership structures are highly technical. A decision that seems harmless, such as adding a child to a deed, can unintentionally trigger higher taxes, expose the home to legal claims, or complicate future care planning.
Estate planning should simplify life for your family — not create new risks. Careful planning helps ensure that property transfers align with your wishes while protecting against financial loss and exploitation.
Final Thoughts
Joint ownership can be useful in very specific circumstances, but it is never a one-size-fits-all solution. Families must weigh tax considerations against long-term control, legal exposure, and today’s increasing risk of financial scams.
Just as importantly, no one should feel rushed into financial decisions during moments of loss or transition. Slowing down, verifying information, and seeking guidance are among the most effective protections available.
Call to Action
If you are considering joint ownership, concerned about rising property taxes, or worried about protecting loved ones from financial exploitation, Lumsden Law is here to help.
From all of us at Lumsden Law, we would like to thank you for the trust you have placed in us by allowing us to assist you with your estate planning and probate matters. Whether we worked with you, your family, your clients, or just someone you know, we appreciate the faith that you placed in us and we wish you health, happiness, and success now and in the future.
FAQs
1. Does joint ownership avoid property tax increases in Florida?
Not always. Only certain ownership structures may preserve the Save Our Homes cap, and strict filing deadlines must be met.
2. What is a Florida survivorship deed?
A survivorship deed allows property to pass automatically to the surviving owner without probate, but improper structuring can create tax and legal issues.
3. Is adding a child to a deed a good estate planning strategy?
Often no. It can expose the home to creditors, divorce claims, gift taxes, and Medicaid complications.
4. How does estate planning help prevent scams?
Clear documentation reduces confusion, removes urgency, and makes it easier to verify legitimate authority during estate transitions.
