For many, especially high-net-worth families, Florida probate is an intimidating concept that they need to deal with at one of the worst times in their lives, just after a loved one has passed away. The probate process is designed to identify a person's assets after death, pay debts, and distribute the remaining assets to beneficiaries. This court-supervised process typically takes 6-12 months to complete, but it may be delayed if there is no will. In this blog entry, we provide an overview of the process including the role of an executor in estate planning. Please contact us today if you’d like to learn more!
Determining Assets
One of the most important tasks of the probate process is to identify probate assets. These are assets owned by the deceased in his or her name only. This would not include assets such as joint accounts or property. The probate court will need to compile a complete list of these assets before proceeding to settle debts and distribute them.
Distributing Assets
Once all the assets are identified, claims must be reviewed and valid claims paid in order of priority, as set forth by Florida law. Claims could include, for example, taxes due, medical bills, credit card debt, mortgages, and personal loans. Finally, once all the valid claims are settled, the Personal Representative must distribute the remaining assets to the proper beneficiaries.
Avoiding Florida Probate
There are various ways high-net-worth individuals often use to avoid probate, in whole or in part, with guidance from a Florida estate planning attorney. For those who choose to plan without legal advice, extreme caution is warranted. While avoiding probate can save beneficiaries significant money, improper execution can be catastrophic.
For example, improper probate planning can result in the loss of assets to creditors or beneficiaries. Improper planning may also delay the time it takes beneficiaries to receive their inheritances due to creditor claims statutes. The role of an executor in estate planning cannot be overemphasized. That individual will be key to expediting probate.
One of the best ways to minimize the probate process is to have a revocable living trust in place. When properly used, a revocable living trust allows assets held in trust to bypass probate.
If you have any questions regarding Florida probate, revocable living trusts, or wills, please contact us today.
