Going through probate when a loved one passes away is a daunting process. Verifying and valuing property in a complex estate while you grieve can feel overwhelming.
Florida’s probate process requires accuracy and knowledge to avoid unnecessary costs and delays. Knowing which assets are exempt from probate can make the experience less complicated.
Probate assets
Probate involves identifying and gathering a deceased loved one’s assets, paying their debts and distributing the remainder to their beneficiaries. It applies to assets that are:
- Owned in the deceased’s name at death
- Owned by the deceased and one or more co-owners
- Lacking a provision for automatic succession of ownership at death
Properties that do not fall under these categories are generally considered exempt.
Exempt assets
In Florida, assets that do not have to go through probate include:
- Property in a revocable trust: Upon the grantor’s death, a revocable trust becomes irrevocable and is distributed directly to the beneficiary or beneficiaries.
- Jointly owned assets with right of survivorship: Real estate and bank accounts owned as joint tenants cannot be inherited by anyone who is not a joint owner. If a joint owner passes away, their shares transfer to the other owners.
- Assets owned under tenancy by entirety: Available to married couples, this type of tenancy automatically passes property to the surviving spouse.
- Assets with designated beneficiaries: These assets, including retirement accounts and life insurance policies, are exempt unless the estate is the beneficiary.
- Payable-on-death or transfer-on-death accounts: Sometimes acting like informal trusts, these bank accounts or accounts in financial institutions have designated beneficiaries.
- Property in lady bird deeds or enhanced life estates: This deed type allows an owner to transfer property to a beneficiary upon death automatically.
- Florida homesteads: Primary residences on less than half an acre of Florida land are homestead properties. They automatically transfer to the surviving spouse or heirs and are generally exempt from debts except for specific obligations like property taxes and mortgage payments.
Figuring out the status of properties and distributing them during probate takes work. It’s advisable to consult an experienced estate planning and probate lawyer, and Florida requires a probate lawyer for settling most estates.
They can assist you in navigating the process and safeguarding assets from bad-faith creditors to ensure your family’s well-being and respect your loved one’s wishes.
