When someone dies, the property and debts they leave behind is called their estate. A Probate Court appoints someone called a personal representative to collect the property, pay the debts, and distribute whatever remains to the decedent’s heirs.
The complexity of the process partly depends on the value of the estate. Formal probate administration in Little Gables is necessary when an estate is valued at more than $75,000. An experienced probate attorney can help a family or personal representative through legal hurdles.
An Estate’s Value May Not Reflect the Decedent’s Wealth
People sometimes assume an estate must go through formal administration because the decedent had substantial assets. That is not always the case. Many people with significant means use various estate planning documents to reduce the value of the estate that must go through probate.
For example, property held in trust does not count toward the value of the estate for probate purposes. Anything the decedent owned jointly with someone else passes immediately to the other owner when the decedent dies, and its value does not count toward the value of the estate. Any property with a named beneficiary, like a retirement account or life insurance policy, passes directly to the beneficiary and does not count the value of the decedent’s estate.
Florida Statute § 732.402 exempts some property from the decedent’s probate estate and allows family members to claim it. The family can claim two vehicles weighing less than 15,000 pounds and personal possessions like clothing, appliances, and furniture up to a value of $20,000. The value of exempt property does not count toward the value of the estate.
Homestead Exemption
When the decedent owned and lived in a residence, it passes automatically to their spouse or children and does not count toward the value of the estate. When the decedent had no surviving spouse or children, the homestead could pass to other relatives or to anyone named in the will to receive the homestead.
The homestead exemption covers only the residence and specified acreage, depending on where it is located. When a property has significant acreage, a Little Gables attorney could help the family determine how much of it is exempt from the decedent’s estate in formal probate administration.
How Formal Administration Works
When the value of the probated property exceeds $75,000, an interested party—usually a family member or the executor of the decedent’s will—files a petition with the court to open formal probate administration. The court will formally appoint a personal representative to manage the estate throughout the formal administration process.
The personal representative must locate the decedent’s property, determine its value, and submit an inventory to the court. The decedent’s property includes all the debts they are owed and legal claims they have, including contract claims or a wrongful death claim if the decedent died because of another party’s negligence or criminal act. A Little Gables attorney can help a personal representative determine whether there are legal claims they should pursue.
The personal representative must publish a death notice with instructions for how creditors can submit claims against the estate. The personal representative can negotiate with creditors to accept a lower payment and can sell the decedent’s property to pay the debts if necessary. When creditors accept payment from the estate, they provide a release of claims to the personal representative. The personal representative also must prepare the decedent’s final personal tax return and the estate’s tax returns, pay taxes due, and deposit tax refunds into the estate account.
Closing the Estate in Formal Administration
The personal representative can petition the court to close the estate when they have collected all the decedent’s property and obtained releases from all the creditors who submitted claims. When the heirs are comfortable that the estate has been handled correctly, they can sign releases that will be included with the petition to close the estate.
When the heirs do not sign releases or the court requests it, the personal representative must prepare a formal accounting of the estate. The accounting must include a list of all payments and disbursements made on behalf of the estate.
The court will then issue an Order of Discharge closing the estate. The remaining property can then be distributed in accordance with Florida law. A Little Gables attorney can help ensure the property is distributed correctly as part of formal administration.
Consult a Little Gables Attorney for Help with Formal Probate Administration Today
Managing an estate after someone dies is a big job, and it can be stressful. When you are a family member who expects an inheritance, waiting for formal probate administration in Little Gables to conclude might cause frustration or confusion.
The Florida Probate & Family Law Firm offers free case evaluations, so there is no reason to hesitate. Reach out today to get started.