What is Probate Administration?
Probate Administration is a legal process filed in the Circuit Court, in the county where the person lived, or where they owned property. The process involves figuring out what the person owned, paying off any debts that are required to be paid, and then giving the remaining “stuff” to their beneficiaries (the people who are legally entitled to inherit their things).
Types of Probate:
- Formal Administration: This is the regular process used for probate. It is a long process.
- Summary Administration: This is a simpler, shorter process used only under certain circumstances.
What are Probate Assets? These are items that need to go through probate. They include things that were owned only by the deceased, with no beneficiary designation on that asset.
Examples include:
- A bank account which is in the deceased’s name alone, with no beneficiary or Pay-on-death designation.
- A life insurance policy or retirement account that either has no beneficiary on it, or perhaps names the decedent’s estate as the beneficiary.
- Real estate owned by the deceased alone, with no one else on title with her/him.
Items like joint accounts, or individual accounts with a Pay on Death designation, or real estate where title is held by a husband and wife, would all pass to “that other person” automatically upon death, without the need to go through probate.
Why is Probate Important?
- Transferring Assets: Probate helps transfer the deceased person’s belongings to the people they named in their will or, if there’s no will, to their heirs under Florida law.
- Handling Debts: Probate also helps make sure valid and duly filed outstanding debts are paid before anything is given to the beneficiaries, thereby protecting creditors after a person passes away..
Understanding probate is essential for anyone involved in estate planning or dealing with a loved one’s estate. While probate helps ensure that assets are properly distributed and debts are paid, it can be a lengthy and costly process. Knowing which assets are subject to probate and the different types of probate administration can help you plan more effectively. With the right preparation—such as setting up trusts, naming beneficiaries, or using joint ownership—you can minimize the impact of probate and make the transition smoother for your loved ones.
Moving forward without an attorney to help you plan can create unnecessary tax events, which could have been avoided by teaming up with an attorney who can help you plan according to your goals and concerns.
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