Neither Florida nor Tennessee has a state estate tax, inheritance tax or tax on wages, which is why so many business owners and retirees move there. A move is the right time to: establish domicile clearly (Florida even has a declaration of domicile under Statute 222.17); check whether your old state can still tax property you keep there; update trusts and wills to your new state; re-check creditor protection (Florida protects life insurance cash value broadly, Tennessee protects policies payable to a spouse, children or dependent relatives); and right-size life insurance you bought for a state estate tax you may no longer face.
We are licensed insurance brokers, not CPAs or attorneys. Treat the tax and legal points on this page as general education, and confirm them with your own CPA or attorney before acting.
On this page
The tax picture
| Florida | Tennessee | |
|---|---|---|
| State estate tax | None | None |
| Inheritance tax | None | None (repealed for deaths after 2015) |
| Tax on wages | None | None (the Hall tax on investment income ended after 2020) |
| Life insurance creditor protection | Broad: cash value (222.14) and proceeds to named beneficiaries (222.13) | Policies payable to a spouse, children or dependent relatives (56-7-203) |
Federal estate tax still applies everywhere, with a $15 million exemption per person in 2026.
Make the move count: domicile
Your old state may still claim you as a resident for income or estate tax if your ties there remain strong. States that have their own estate tax (several in the Northeast, Midwest and Pacific Northwest) have audited estates of people who moved but kept homes and connections behind. Steps that help establish your new domicile:
- Get a new driver's license and register to vote in your new state.
- In Florida, file a declaration of domicile with the county clerk (Florida Statute 222.17) and apply for the homestead exemption.
- Move your primary doctors, bank relationships, safe deposit box and important papers.
- Change your address on tax returns, brokerage accounts and insurance policies.
- Spend most of your time in the new state, and keep records.
Property you leave behind
Real estate stays taxable by the state where it sits. If you keep a home in a state with an estate tax, your estate may still owe that state tax on the property even after you move. Owning out-of-state real estate through an LLC or a trust can change how it is treated, and it can avoid a second probate in that state. Ask your estate attorney before closing on a new home or selling an old one.
Life insurance questions to revisit
- Coverage bought for a state estate tax: if you bought insurance to pay a state estate tax you will no longer owe, it may be larger than you need now. Review before cancelling; see do you still need estate life insurance?
- Ownership and creditor protection: in Florida, cash value is broadly protected when you own the policy on your own life; see Florida creditor protection. In Tennessee, protection turns on naming a spouse, children or dependent relatives as beneficiaries.
- Trust situs and trustees: an ILIT created under another state's law still works after you move, but trustees, governing law and state income taxation of the trust deserve a look.
- Community property: coming from a community property state (such as Texas or California)? Assets acquired there may keep that character; Florida has statutes addressing community property at death. Your attorney should review titles and beneficiary designations.
- Licensing: your insurance policies follow you, but new policies are issued under your new state's rules. We are licensed in 31+ states, including Florida and Tennessee.
Bringing a business with you
If you are moving a business or managing one remotely, check where the business is registered, where its income is taxed, and whether your buy-sell agreement and key person coverage still fit. Our business life insurance hub covers the business side.
Frequently asked questions
Does Florida have an estate or inheritance tax?
No. Florida does not impose a state estate tax or inheritance tax. Federal estate tax still applies to estates above the federal exemption ($15 million per person in 2026).
Does Tennessee have an inheritance tax?
Not anymore. Tennessee's inheritance tax was repealed for deaths occurring after 2015, and Tennessee has no state estate tax.
Do I need new wills and trusts after moving to Florida?
Existing documents are often still valid, but they should be reviewed. Florida has its own rules on witnesses, personal representatives and homestead, and updating avoids delays and disputes.
Start your life insurance request
Tell us what the coverage is for and who it would cover. For most requests we ask for each person's date of birth and sex so Erik can prepare for the call. We do not ask health or tobacco questions in this initial request. This is a request for help, not an insurance application or a promise of coverage.
Written by Erik Moran
Erik co-owns Moran Insurance Group with Amanda Moran and handles the agency's life insurance cases, from key person and buy-sell coverage to trust-owned policies. He works alongside clients' CPAs and attorneys, who make the tax and legal calls. More about Erik.
Sources
- Florida Statutes 222.17: manifesting and evidencing domicile in Florida
- Florida Statutes 222.14: exemption of cash surrender value of life insurance and annuities
- Florida Statutes 222.13: life insurance policies, disposition of proceeds
- Tennessee Code 56-7-203: exemption of life insurance from creditors (Justia)
- IRS: Estate tax
Moran Insurance Group is a licensed insurance agency. Our brokers are not CPAs, attorneys or tax advisors, and nothing on this page is tax, legal or investment advice. Tax figures and rules reflect our understanding as of October 2026 and can change. Coverage is subject to carrier underwriting and state availability. Confirm anything tax or legal with a licensed CPA or attorney before you act on it.