Have you given thought to what happens to your belongings after you die? Of course, no one wants to think bout their own mortality. However, it is necessary to ensure everything you have worked hard for in life gets handled in a manner that aligns with your wishes. Probate is the crucial process that addresses what happens to your estate after you die. Learn about what probate is and who can be impacted by it.
What Is Probate?
When someone dies, they leave behind everything they own. These are called assets and, collectively, an estate. Something needs to be done with these assets now that the individual owning them has passed on. Probate is a court-supervised process. It identifies and compiles the assets, pays off creditors, and distributes the remaining assets to heirs.
There Are Two Types of Probate
There are two types of probate in Florida. The first type is formal probate. This is the entire probate process that estates go through. They require a personal representative to manage the estate and ensure that creditors are paid, assets are sold or dispersed, and heirs receive the intended sums. Estates with a large amount of assets or has creditors will typically require this type of probate.
The second type is summary probate. This process is meant for small and uncomplicated estates. Typically, for estates that value less than $75,000 and have no debt. All beneficiaries must agree to summary judgment for probate to move forward with this process. Once everyone agrees, you petition the court to approve the summary judgment. Depending on the court, it can take a few weeks to receive a response. Upon receipt of the approval, the heirs can have access to the estate’s assets.
Disposition of Personal Property Without Administration
In limited circumstances, there is a third option. Disposition of personal property without administration skips the probate process. It is only an option when the deceased individual did not own any real estate, and their assets are less than the cost of final expenses and probate. Essentially, going through the probate process isn’t financially feasible.
How Long Does the Probate Process Take?
The time it takes for an estate to go through the probate process will depend on what type of probate it is. The formal probate process typically lasts six to nine months. At the beginning of the process, a personal representative gets named. You may hear this person get called an executor.
While the executor can begin managing and selling the estate assets immediately, a waiting period must be observed. First, a 90-day creditor waiting period must run. This timeline begins once the announcement is published in the newspaper. After the 90-day waiting period, the executor can begin the close-out process.
Because the summary probate process is designed for small estates, it can go much faster. In some cases, it can take under a month to settle the estate.
Can I Avoid Probate?
Generally, when someone passes away, their estate must go through probate. However, there are ways to avoid probate. It takes forethought and planning. If the estate is in a living trust, then a legal entity exists beyond the person’s death. The beneficiary will automatically receive the assets of the trust. There is nothing to go through probate. Another option is to ensure all assets can be transferred to a specific beneficiary.
For as many assets as possible, try to have a named beneficiary registered. For example, you can name your beneficiary for your life insurance policy, retirement accounts, and investment accounts. These accounts will not need to go through probate because the assets automatically transfer to the named beneficiary.
Prepare Your Estate Documents
Understanding the probate process will help you prepare your will and estate planning documents. Speaking with a lawyer can help you understand your options. That way, you can choose the best plan for your situation and wishes.
Schedule a consultation to discuss your estate planning needs with one of our knowledgeable attorneys.
