What is Probate?
Probate refers to the judicial process of managing the estate of a deceased individual. This process involves identifying and collecting the decedent’s assets, settling any outstanding debts, and distributing the remaining assets to the beneficiaries. Typically, the assets of the estate cover the costs associated with the probate process, funeral expenses, and any debts owed by the decedent. Any remaining assets are then allocated to the beneficiaries.
In Florida, there are two types of probate administration: formal and summary. Formal administration is the standard probate process in Florida and begins with filing a petition to establish the probate estate and appointing a personal representative. Summary administration, on the other hand, is a more streamlined and less expensive approach. Unlike formal administration, summary administration does not require appointing a personal representative. This simplified method is available only if the decedent has been deceased for more than two years or if the total value of the probate assets is $75,000 or less.
What Are Probate Assets?
Only probate assets are subject to probate administration. These assets are either solely owned by the decedent at the time of death, or jointly owned without automatic transfer provisions upon death. Examples of what might be considered probate assets include:
- A bank or investment account held solely in the decedent’s name is considered a probate asset. On the other hand, accounts that have payable-on-death or transfer-on-death designations, or are jointly owned with rights of survivorship, may not fall under probate assets.
- A life insurance policy, annuity, or retirement account that is payable to the decedent’s estate qualifies as a probate asset. However, if such assets are designated to a specific beneficiary, they may not be classified as probate assets.
- Real estate solely in the decedent’s name or held as tenants in common with others is a probate asset, except for homestead property. Conversely, real estate held jointly with rights of survivorship, or owned by spouses as tenants by the entirety, does not qualify as a probate asset.
This list is intended only for illustrative purposes, and is not exhaustive.
Why Is Probate Necessary?
Probate is often required to transfer ownership of the decedent’s probate assets to the beneficiaries in compliance with Florida law. If the decedent left behind a valid will, the probate court will admit the will and facilitate the transfer of assets to the named beneficiaries. Without a will, probate helps distribute the decedent’s assets according to the intestacy laws specified in Florida’s Probate Code.
Additionally, probate may be needed to settle the decedent’s financial matters. This process ensures that any debts are paid and that the estate is administered according to the appropriate legal procedures.
Contact a Probate Attorney
For assistance with probate administration in Florida, contact The Binkley Law Firm. Mason Binkley, an experienced attorney, can help with your probate and estate administration needs, including identifying estate assets, notifying creditors, settling debts, and distributing assets to the beneficiaries.