Appropriate and effective asset administration in Florida probate cases is crucial if you want to ensure your beneficiaries receive the inheritances you intended. Taking careful action during the estate planning process can improve the odds of a quick, clean outcome when your estate is probated.
Personal representatives play a crucial role in this process, whether you nominate someone to serve in this role through your will or the court appoints them. A determined probate attorney can advise the personal representative and assist them in upholding their duties.
Identifying the Correct Approach to Asset Administration
When someone passes away in Florida, probate judges are tasked with determining how their property is to be divided. The personal representative holds these assets while they handle the important work of administering an estate. Depending on the value of the estate or on the length of time since the death, they could use either summary or formal administration to manage the estate.
Summary Administration
This process is typically used for smaller estates. If the total amount of the assets owned by the deceased is worth less than $75,000, summary probate administration is an option. Alternatively, this path is open when the deceased person has died more than two years prior.
Through this method, the entire process is simplified. It allows the beneficiaries to receive their inheritance sooner and is less likely to result in lengthy delays. Often, summary administration can be completed in one or two months, which differs dramatically from the potentially years-long ordeal of the traditional approach.
There is a reason this approach is limited to small estates and those whose creditors are out of time to pursue a claim. Because there is little reason for litigation, some of the formalities of traditional probate courts are relaxed.
Formal Administration
Estates that do not qualify for summary administration must go through the formal process. A personal representative—which is usually someone named in the will—is appointed to oversee this process. Creditors can file claims on the estate, and beneficiaries can challenge the will. Due to the formality of formal probate administration, it can take years for a case to resolve.
Not All Property Goes Through Probate
Administration of an estate in Florida can be a major undertaking, but some property is exempt. Only specific assets must be probated, while others automatically transfer ownership without the need for court intervention. When it comes to this property, the personal representative does not have any role in its distribution.
Common examples of this include assets that are jointly owned by the decedent and another party. When one of these owners passes away, the other gains full rights to the asset automatically. There are accounts with payable-on-death designations, which identify a new holder if the owner passes away. These transfers also occur automatically before probate ever begins.
Another asset administration exception in Florida applies to specific assets like the family home or its furnishings.
Talk to an Attorney in Florida About Probate Asset Administration Today
Dealing with the estate of a loved one is a complex issue, but there are steps you can take to simplify things. Most important among these options is hiring a respected local attorney to serve as your advocate. Contact The Florida Probate & Family Law Firm today to set up a free case evaluation to discuss asset administration in Florida probate.