In Florida, probate is the process in which the court administers the assets of a decedent’s Last Will and Testament (“Will”), or, if there is no Will, then administering the assets of a decedent via the Florida Intestacy statutes. Fla. Stat. 732. A probate typically occurs in the county where the decedent resided at the time of death. The administration of an estate includes gathering the decedent’s assets, paying the decedent’s debts, and distributing the decedent’s assets to their designated beneficiaries. However, not all of the decedent’s assets have to be included in the probate if the asset is considered transferable upon death or if the asset is in a trust or another estate planning tool. There are two types of probate administration: summary and formal administration.
Summary Administration
Summary administration can only be used when the total value of assets in the probate estate are worth $75,000.00 or less, or when the decedent has been deceased for more than 2 years. Summary administration also tends to be shorter and typically does not last longer than 6 months. Exempt probate assets such as homestead household furnishing up to $20,000 and two motor vehicles (not exceeding 15,000 lbs.) are not included in the $75,000.00 calculation.
Formal Administration:
A Formal Administration occurs when an individual has been deceased for less than two years, and the total value of assets in the probate estate is more than $75,000.00. Formal administration can take, on average, anywhere between 12-18 months to be completed. The process includes appointing a Personal Representative for the estate to act on behalf of the estate, while a summary administration does not have a Personal Representative. A Personal Representative has to be at least 18 years old, mentally and physically capable of serving as a Personal Representative, and not be convicted of a felony. The will can designate a personal representative, and if it is not mentioned in the will, then Florida Statutes will help in the designation of a personal representative. The Personal Representative has the authority to “step in the shoes” of the Decedent in order to gather all the assets. The Personal Representative then has to pay the remaining debts and then distribute the remaining assets according to the Will or through the intestacy statutes.
Summary administration is more cost-effective than formal administration, but not every situation is eligible for summary administration. Estate planning tools such as trusts, ladybird deeds, joint accounts, and transferrable upon-death accounts are some but not all strategies one can use to limit the probate estate. In Florida, if a decedent leaves a Will, the only way to correctly and fully administer the Will is to open up a probate. The Will does not keep assets outside of the probate estate; rather, it describes the manner in which the estate’s assets must be distributed. The Formal probate process is already difficult and complex and can become even more difficult and complex if a beneficiary objects to the probate estate’s administration.