Is All Property Subject to Probate in Florida?

When a person passes away in Florida, their estate typically must go through the probate process. A person’s estate refers to the assets, as well as the liabilities, they owned at the time of their death. Probate is the process of administering that estate and distributing the assets among the beneficiaries and heirs of the estate. During probate, creditors can also file a claim against the estate to recover any debt that has not yet been paid.

Many people mistakenly believe that all assets must go through the probate process but this is not necessarily true. Below, our New Port Richey probate lawyer outlines the types of property that are exempt from the process.

Beneficiary Designations

Some types of property have beneficiary designations attached to them. This includes life insurance policies, retirement accounts, and other investments. This property is not subject to probate because the asset will pass directly to the named beneficiary after the owner passes away. Although not everyone is aware of it, bank accounts can also name beneficiaries. These are known as ‘payable-on-death’ designations. Likewise, brokerage accounts and other taxable investments can also name beneficiaries known as ‘transfer-on-death’ designations.

Jointly Owned Property 

Only property that was solely owned in the deceased’s name is subject to probate. If two or more people jointly own property and one owner passes away, the asset automatically passes to the surviving owner or owners. For example, a married couple may own a home together. Upon one spouse’s death, the home would automatically transfer solely to the other spouse. This can ensure that co-owners do not have to wait for probate to be closed until they receive an asset that they already own.

Property Held in a Revocable Trust

One of the biggest benefits of drafting a revocable trust is that the property within them is not subject to probate upon your death. You can transfer property into the trust by retitling it from your name to the name of the trust. Due to the revocable nature of these documents, you can manage the property during your lifetime. This means you can sell, gift, or transfer the property. You can also acquire more assets and if you choose, place them into the trust.

You will also name a successor trustee who will manage the property within the trust after you pass away. This individual must follow the instructions left within the trust and distribute the assets as you intended. After you pass away, a revocable trust becomes irrevocable, meaning the provisions within it cannot be changed. It also means the trust is a separate legal entity from your estate and so, it is not subject to probate and creditors cannot go after the property to repay debt owed to them.

Our Estate Planning Lawyer in New Port Richey Can Explain Your Options

There are many ways you can help your family avoid the probate process during estate planning. At Messina Law Group, P.A., our New Port Richey estate planning lawyer can advise you of your options, help you determine the right one for you, and make sure you and your family are protected. Call us today at (813) 492-7798 or fill out our online form to schedule a consultation and to learn more.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html