Wealth Management in Florida

Why wealth moves to Florida

Florida adds hundreds of thousands of residents in a typical year, and many bring substantial assets. According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, the median Florida household earns about $74,568, the median home is worth about $359,000 and the state is one of the oldest in the country. The tax picture is the main draw: there is no personal income tax, and there is no estate or inheritance tax.

A wealth manager’s first conversation with a new Floridian is usually about the move. What has to change, what should be done before a sale and what can wait? The answers differ for a retiree who plans to live on investments, an executive who sells stock after relocating and a business owner who is about to sell a company.

Changing domicile for real

Tax savings from moving to Florida can be large, and former states often look closely. Your domicile is the place you consider your permanent home, and courts and tax agencies weigh several factors: where you live most of the year, where your family is, where you vote and hold a license, where your doctors and advisors are, and where you keep your most valuable belongings.

Common steps in Florida include filing a declaration of domicile with the county clerk, applying for the homestead exemption on the home you own, getting a Florida driver’s license, registering to vote, updating your address with banks and the IRS and moving things that matter to you, such as family heirlooms and your primary doctor. Spending fewer days in the old state, with records to prove it, is important. The plan is much stronger if you finish the move before a large taxable event, such as a business sale or a stock sale, than if you move afterward. A CPA and attorney should be part of the process.

The homestead: protection and limits

The Florida constitution gives a primary residence two benefits. The first is a property tax benefit, with an exemption and a cap on yearly assessment increases through the Save Our Homes program. The second is protection from most creditors, so a creditor generally cannot force a sale of the home, with some exceptions such as a mortgage or taxes. That creditor protection draws professionals who worry about liability.

The homestead also has limits that surprise people. The constitution restricts how the home can be left by will when the owner is survived by a spouse or minor child, and rules about the transfer of the home are rigid. A married couple can hold the home as tenants by the entirety, which adds creditor protection and survivorship. Anyone who owns a home in Florida and elsewhere should check which property is the homestead, and a Florida attorney should review deeds and estate documents. Our estate planning guide covers trusts and beneficiaries.

Insurance, condos and the cost of owning near the coast

If there is one expense that reshapes Florida wealth plans, it is insurance. Homeowners premiums have risen sharply, some insurers have left the market and many owners have moved to Citizens Property Insurance, the state-created insurer of last resort. Hurricane deductibles are often a percentage of the home’s insured value, which can mean tens of thousands of dollars, and flood damage is excluded from standard policies and bought separately.

Condominium owners face another layer. After the 2021 collapse in Surfside, Florida passed laws requiring structural inspections and funded reserves for many older buildings, which can lead to large special assessments and rising monthly fees. A wealth plan treats those costs as part of the carrying cost of a home, keeps cash available for a deductible or an assessment and asks whether a coastal property is the right place to hold a large share of net worth. For owners with several properties, an umbrella liability policy and the way each property is titled also deserve attention.

Trusts and the community property option

Florida is not a community property state, but a 2021 law allows married couples to create a community property trust. Assets placed in it can receive a full step-up in cost basis at the first spouse’s death, which can erase a large capital gain on a long-held stock or property. The trust has costs and drawbacks, and it makes the most sense for couples who hold appreciated assets and whose estates are not likely to owe estate tax. An attorney experienced with the trust should handle it.

Florida also has favorable trust laws, with no state income tax on trust income for Florida trusts and strong rules for long-term trusts. A wealth manager coordinates the trust’s investments, tax filings and distributions with the family’s plan.

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Taxes after the move

With no state income tax, federal tax decides almost everything. A wealth plan focuses on tax-efficient investing, the timing of capital gains, Roth conversions in low-income years, charitable gifts of appreciated stock and the way retirement accounts are drawn down. Our tax planning guide explains these tools. Florida still collects sales tax and property tax, and doc stamp taxes apply to deeds and mortgages, so the state’s costs show up in the price of goods and homes. If you keep income from another state, such as rent from property or earnings from a business there, that state may still tax it.

Business owners, professionals and family offices

Florida has become a home for founders, fund managers, physicians, lawyers and executives who relocated, along with a long-standing base of family companies in real estate, construction, hospitality and agriculture. Each brings a particular planning problem. A founder needs to decide how much to sell, how to structure the sale and where to put the proceeds. A physician or lawyer wants asset protection and a practice transition plan. A real estate family wants to hold properties efficiently and to pass them on. Households with large balances sometimes build a family office, a small team that handles investments, taxes, bill paying and philanthropy, and a wealth manager can serve as the center of that team or as an alternative to it. Retirement timing matters too, since a household that expects to live on investment income needs a clear withdrawal plan, which our retirement planning guide explains.

Giving and legacy

Many Florida families want their wealth to do something beyond their own lifetimes. Donor-advised funds, gifts of appreciated stock and charitable trusts can lower income tax now and support causes you care about. For heirs, a trust can control timing, protect a beneficiary from creditors and keep the plan private. A conversation among family members about expectations, before anything is signed, often prevents conflicts later. A wealth manager can host that meeting, show how assets will be divided and keep the legal documents and the investment plan aligned.

What the engagement looks like

An engagement starts with documents: account statements, tax returns, property deeds, trusts, business records and insurance policies. The advisor builds a written plan and a portfolio, then reviews them on a set schedule, often quarterly, and coordinates with your CPA and attorney.

Fund costs, trading charges and commissions come on top. Ask for one yearly total.

Registration and credentials

The Florida Office of Financial Regulation registers smaller advisory firms, and the SEC registers larger ones. An adviser has a fiduciary duty to you on its advice, and a broker answers to FINRA and is generally paid through commissions. Check both the firm and the person on the SEC adviser database and FINRA BrokerCheck, and read Part 2 of the Form ADV. Our investing basics guide explains how portfolios are built.

Questions to ask before you sign

1. Which person will actually look after my account?
2. What is the yearly total once fund fees and commissions are counted?
3. Are you willing to confirm in writing that you act as a fiduciary?
4. What have you done for clients who changed domicile, own coastal property or use Florida trusts?
5. Will you meet with my CPA and attorney?
6. Where is my money held?

Frequently asked questions