Our Florida Estate Planning Lawyers Can Help You Determine When Probate’s Risks Outweigh Its Potential Rewards Almost every Florida estate that isn’t protected by a trust will eventually pass through probate. Probate is simply a structured approach to estate administration. However, misinformation about probate, its complexity, and its costs abound. Many people erroneously expect probate to be straightforward, while others go far out of their way to avoid a process that isn’t always all that intimidating. Beacon Legacy Law has spent years helping Florida families build legacies and cement their peace of mind. Read more to find learn when probate could work to your advantage—and to understand when it may not. Understanding the Probate Process After you pass away, the sum of everything you own—your home, your assets, and your personal possessions—becomes a part of your estate. Probate is the legal process of dissolving your estate and redistributing its assets to the people and parties entitled to a share. Every probate case varies in its details, but most comprise of the following steps: If you have an executor, they must present a copy of your last will and testament to the probate court of your county of residence. Your executor will file a petition to begin probate, then serve notice of proceedings to your relatives, your heirs, and any creditors to whom you still owed debt. Your executor must inventory, catalog, and manage all of your estate assets until they have been successfully transferred and retitled. Before probate can finish, your executor must review and respond to creditor claims. Additionally, if an interested party wishes to contest the terms of your estate, they may do so in court. Once the estate has been cataloged and all claims against it have been resolved, your executor may distribute inheritance and close probate. For Floridians with small families and simple estates, probate often starts and ends without much of a hassle. However, probate can prove much more challenging when debt, creditors, or estranged relatives become involved. Weighing the Pros and Cons of Probate Your personal circumstances ultimately dictate whether probate is a process that is best avoided or better accommodated. Here’s what you need to know before making a decision: The Advantages of Probate Probate could prove advantageous if: You want to close out debt. If creditors to your estate don’t stake their claims within 90 days of receiving notice, they’ll lose their chance to recover whatever debt they may have been owed. This 90-day widow is much shorter than the 2-year timeframe applicable to revocable living trusts. You’re skeptical of creditor claims. Your executor has a fiduciary duty to defend your estate from creditor claims made in bad faith. If your estate has the resources it needs to fight low-risk creditor claims, you’ll be afforded the protection of court-monitored processes of dispute resolution. You want the court to resolve disputes. Your friends and family may not agree with how your estate should be distributed or handled. Probate courts offer an opportunity to settle disagreements between named and prospective heirs. Letting a judge make impartial determinations about right and wrong is sometimes better than making executors, friends, and family go to toe-to-toe. The Disadvantages of Probate Probate is typically only advantageous when an estate is small, simple, or subject to relatively minor risks. It is best avoided when: You want your heirs to receive their inheritances fast. Probate generally takes a very long time to complete. In Florida, most probate cases average between 6 and 12 months in length. If you want your heirs to receive their inheritances as fast as possible, a trust could prove a much faster and much more efficient alternative to estate administration. You want to save your estate money. If your estate is sued by a creditor or an heir, your executor will most likely have to use estate assets to fund a defense. Even in the absence of conflict, routine costs can add up, with most probate cases costing between 3-5% percent of the estate’s overall value. You want to keep your estate’s records private. Probate takes place in court, and most court proceedings and records are open to the public. Probate is no exception. If you don’t want the details of your life and your personal finances available to anyone who asks, then you should probably prepare an estate plan that keeps your assets out of probate. Learn more about the disadvantages of probate by requesting our free guide, Top 5 Probate Pitfalls. Let Our Florida Estate Planning Lawyers Help You Find the Estate Planning Strategy That’s Right for You At Beacon Legacy Law, we understand that every individual and family has unique circumstances and goals when it comes to estate planning. We'll meet with you to: Assess your current financial situation and family dynamics Discuss your long-term objectives for asset distribution and wealth preservation Explain the pros and cons of probate in relation to your specific case Explore alternative options such as trusts, if appropriate Develop a customized estate plan that aligns with your needs and preferences Whether probate is the right choice for your estate or you'd benefit more from alternative strategies, our team will provide clear, honest guidance. We're committed to helping you make informed decisions that protect your legacy and provide peace of mind for you and your loved ones.
