About 200,000 people pass away in Florida each year. For each one of these people, there is an estate that must be handled. There are three methods for handling a deceased’s estate in Florida, formal, summery, and disposition without administration. Not every estate goes through probate. However, knowing the probate process can help you understand its potential impacts.
Step 1: Meet with an Attorney
Your first step should be to meet with an attorney who can help you get organized. If you are named the executor of the will, the attorney will review the deceased’s assets and debts. This will give you a road map of how to handle the probate process. The Florida Probate Code is detailed, so speaking with an attorney can help you understand what’s required and its potential impacts. The probate process is not fast, easily taking 6 to 9 months.
Step 2: File a Petition with the Probate Court
The probate process doesn’t really start until you petition the court. This is also when all family members and potential heirs are notified of the deceased’s passing.
It can take a month for the court to issue Letters of Administration. In this latter, the executor will be named. You will need this letter to access the deceased’s assets and open an estate account to serve as a place for depositing assets subject to probate.
Step 3: Notify the Deceased’s Creditors
Creditors have a right to know when their debtor has passed away. The personal representative must attempt to notify them. They could do this by notifying them directly or publishing in the local newspaper for two weeks in a row. Creditors then have three months to make their claim. The personal representative must also submit a list of known creditors to the court.
Step 4: Inventory the Decease
While waiting for creditors to step forward, the personal assistant should begin the task of inventorying the deceased’s estate. Look for all potential assets, including bank accounts, stocks, mutual funds, bonds, vehicle titles, real estate titles, and any other countable assets. File the complete list with the court. Some assets avoid this process, such as insurance policies and retirement accounts. These are in the deceased’s name and typically have a beneficiary named that the account assets automatically go to.
Step 5: Close Creditor Period & Pay Valid Debts
At the end of the three months, the personal representative can begin distributing and closing the estate. Any creditor claims after this point are considered invalid and could be successfully contested.
Available cash will go towards debts first. If there isn’t enough liquid cash, the personal representative will sell off assets to generate cash to satisfy creditor claims.
Step 6: File & Pay Estate Taxes
After the creditors are satisfied, the personal assistant will process the final income tax return to satisfy any estate or other taxes owed to the IRS. If this is not done, the personal representative could face potential impacts like being personally financially liable. A tax professional or probate attorney can provide guidance to ensure all outstanding taxes are paid.
Step 7: Final Estate Accounting
The personal representative has a fiduciary duty to the deceased. Therefore, they must keep a detailed record of the deceased’s assets and every action taken. This final accounting report will include a list of all assets, creditors paid, probate fees satisfied, attorney fees, and the personal representative’s entitled payment.
Step 8: Distribute Remaining Assets to Beneficiaries
At this step, the remaining assets get distributed in accordance with the wishes of the deceased outlined in the will. All applicable parties must agree to the distribution plan for this to happen.
While the personal assistance hopes that everyone agrees to the wishes outlined in the will, this isn’t always the case. If someone wishes to contest the validity of a will, they will do so through probate court. These challenges must be addressed and ruled on before asset distribution can continue.
Step 9: Close the Estate
Once all creditors and assets have been addressed, there is one final step. The personal representative will file a petition to discharge themselves, end the fiduciary role, and close the account. Once this happens, the probate process ends.
Schedule a consultation with one of our probate attorneys if you find yourself handling the distribution of someone’s estate.
