Estate and Gift Tax for Collier County Families

For local entrepreneurs, managing a legacy requires serious foresight. Planning for the estate and gift tax Collier County residents face is more important than ever.

We actively help Southwest Florida business owners protect their assets from heavy tax burdens.

The recent federal changes create entirely new opportunities. Let’s look at the new data and explore a few practical ways to respond. Our team aims to provide clear context for your decisions.

The federal estate tax exemption

The federal estate tax exemption dictates how much money an individual can pass down tax-free. In July 2025, Congress passed the One Big Beautiful Bill Act (OBBBA). This legislation permanently increased the exemption to $15 million per person starting January 1, 2026.

We closely tracked this bill because it eliminated the scheduled 2026 sunset provision. Married couples can now shield a combined $30 million from federal estate taxes. This new federal baseline drastically changes how we approach estate tax Naples business owners face.

Key Takeaway: The top federal tax rate remains 40%, making this expanded exemption the most valuable tool for preserving generational wealth.

Our advisors recommend taking advantage of this permanent baseline by shifting future appreciation out of your taxable estate now.

What counts in the estate

The IRS requires you to calculate your gross estate by adding up the fair market value of everything you own. Many local business owners underestimate their true net worth.

We regularly see Naples contractors and restaurateurs shocked by their business valuations. Your taxable estate includes:

• All assets owned at death (real estate, financial accounts, business interests)
• Life insurance proceeds (where the decedent owned the policy)
• Certain gifts made within three years of death
• Assets in some irrevocable trusts (depending on retained powers)

Certain high-value items push families over the limit faster than anticipated.

Local Real Estate Impact

Property values in Southwest Florida add up rapidly. In early 2026, the median list price for a home in Naples sat near $695,000.

Our clients with appreciated commercial properties or Old Naples second homes easily cross the exemption limits. You must file IRS Form 706 to accurately report these values upon death.

Annual gift exclusion

You can transfer wealth tax-free while you are still alive using the annual gift exclusion. For 2026, the IRS increased this limit to $19,000 per recipient per year.

We often help married couples combine their limits to give $38,000 annually to a single person. You do not need to file a gift tax return if you stay under this cap.

Strategic Gifting Opportunities

Strategic gifting helps reduce your taxable estate over time. You can pay medical bills directly to facilities like NCH or tuition to Florida Gulf Coast University without using your exclusion.

Our firm suggests the following methods for transferring assets efficiently:

• Grandchild 529 plans: front-loaded gifts can be 5-year averaged to maximize growth.
• Family business ownership transitions: gifting shares annually transfers control gradually.
• Real estate fractional gifts: spread property transfers over multiple years.
• Medical and education direct payments: paid directly to the provider or school, this doesn’t count against the exclusion.

Lifetime exemption

Gifts that exceed the $19,000 annual limit tap into your lifetime exemption. This lifetime pool shares the same $15 million limit as your estate exemption.

We remind clients that using this exemption requires filing IRS Form 709. You do not owe immediate taxes just for filing the form. The document simply tracks your usage against the $15 million lifetime cap.

Important Note: A matching $15 million Generation-Skipping Transfer (GST) tax exemption allows you to pass wealth directly to grandchildren tax-free.

Our team emphasizes early usage to lock in tax-free transfers of high-growth assets. Wealth transferred during your life grows entirely outside your taxable estate.

Step-up in basis

Inherited property receives a massive tax benefit under Section 1014 of the Internal Revenue Code. The property’s cost basis steps up to its fair market value on the date of the owner’s death.

We consider this one of the most powerful tax provisions available to families today. The deceased owner’s lifetime capital gains disappear completely for federal income tax purposes.

A Naples Property Example

Consider a commercial landscaping yard bought in 1995 for $300,000. If that property is worth $1.5 million at the owner’s death, the heir inherits a $1.5 million basis.

Our planners show clients how selling immediately results in zero federal capital gains tax. Selling highly appreciated assets before death often creates an unnecessary tax burden.

Strategy	Tax Implication	Best For
Selling Before Death	Triggers capital gains tax on historical appreciation.	Assets losing value or needing immediate liquidation.
Holding Until Death	Receives a step-up in basis to current market value.	Highly appreciated local real estate and stocks.

Florida-specific advantages

Relocating your domicile to Southwest Florida provides significant financial advantages. The state code heavily favors wealth preservation.

We help high-net-worth individuals establish proper residency to capture these benefits:

• No state estate tax. Only federal estate tax applies.
• No state inheritance tax. Beneficiaries owe no Florida-level tax on inheritance.
• No state gift tax. Gifting strategies face only federal rules.
• Strong homestead protections. Florida homesteads are protected from most creditors and have special transfer rules.

Because there is no state gift tax, Florida residents can execute aggressive gifting strategies focusing solely on federal rules.

Constitutional Homestead Protection

Florida offers unmatched safeguards for your primary residence. Article X, Section 4 of the Florida Constitution protects homesteads from forced sale by most judgment creditors with unlimited equity protection.

Our experience shows that this absolute protection is a major draw for successful entrepreneurs. To qualify, the property must be your permanent primary residence. See how to establish Florida residency for the exact steps.

Naples and Marco Island planning patterns

Wealth management in coastal Collier County requires highly specific strategies. A generic approach often fails to address the unique rules of local property ownership.

We regularly implement advanced structures designed for this specific market. You must account for several local factors:

• Coastal real estate with significant appreciation. Step-up planning matters enormously. Holding through death often saves more tax than gifting during life.
• Second-home complications. Florida second homes do not qualify for homestead unless you genuinely establish domicile. Treatment in the estate matters for tax.
• Multi-generational gifting. Annual exclusion gifts to children and grandchildren add up over decades. Well-coordinated programs can move millions tax-free.
• Trust structures. Irrevocable trusts like Spousal Lifetime Access Trusts (SLATs) and dynasty trusts are critical for advanced planning. See revocable vs irrevocable trust tax.
• Foreign property and FIRPTA. Non-US-citizen spouses have different estate tax treatment, including no unlimited marital deduction. See International Tax & FIRPTA.

Coordination is everything

Proper wealth transfer requires a synchronized team of professionals. A misaligned strategy often leads to missed exemptions or compliance failures.

We collaborate closely with your existing advisors to ensure precise execution. This typically involves:

• Estate attorney: drafts the documents, including wills and trusts.
• Financial advisor: manages assets and long-term projections.
• Tax advisor: prepares Form 1041, Form 706, and Form 709 to coordinate the tax position.

Our dedicated professionals work as the tax piece of that team.

See our Estate & Trust Tax service for engagement details, or book a confidential consultation.