What Assets Are Exempt from Probate in Florida?

When it comes to estate planning in Florida, one of the primary goals is often to avoid probate. Probate is the legal process of validating a will and distributing a deceased person’s assets to their beneficiaries. While probate serves an important purpose, it can also be time-consuming, costly, and emotionally draining for families.

Fortunately, not all assets are subject to probate in Florida. By understanding which assets are exempt from probate, you can make informed decisions about your estate plan and potentially save your loved ones from a lengthy and expensive probate process.

Probate Process in Florida

Probate is a court-supervised process that involves identifying and gathering the deceased person’s assets, paying their debts and taxes, and distributing the remaining assets to the beneficiaries.

There are three main types of probate administration in Florida:

1. Formal Administration: This is the traditional probate process and is required when the estate’s value exceeds $75,000 or when there are creditor claims against the estate.
2. Summary Administration: This is a simplified probate process that may be used when the estate’s value is less than $75,000 or when the deceased has been dead for more than two years.
3. Disposition without Administration: This is a process that is only available when the estate’s assets do not exceed the decedent’s funeral and final medical bills.

The probate process can be lengthy, often taking several months to a year or more to complete. It can also be costly, with fees for attorneys, executors, and court costs. This is why many people seek to avoid probate when possible.

Assets That Are Exempt from Probate in Florida

Now, let’s explore the types of assets that are exempt from probate in Florida.

Jointly Owned Assets with Survivorship Rights

Assets that are jointly owned with survivorship rights pass automatically to the surviving owner upon the death of one owner. The two most common types of survivorship rights in Florida are:

1. Joint Tenancy with Right of Survivorship (JTWROS): This type of ownership is commonly used for bank accounts, brokerage accounts, and real estate.
2. Tenancy by the Entirety (TBE): This type of ownership is similar to JTWROS but is only available to married couples. TBE offers additional protection from creditors.

Assets with Designated Beneficiaries

Certain assets allow you to name a beneficiary who will receive the asset upon your death. These assets bypass probate and pass directly to the named beneficiary. Examples include:

• Life insurance policies
• Retirement accounts (IRAs, 401(k)s)
• Transfer on Death (TOD) or Payable on Death (POD) accounts

Assets Held in Trust

Assets held in a properly drafted and funded trust are exempt from probate. There are two main types of trusts:

1. Revocable Living Trusts: These trusts can be modified or revoked during the grantor’s lifetime. They allow the grantor to maintain control over the assets while avoiding probate.
2. Irrevocable Trusts: These trusts cannot be easily modified or revoked and offer additional benefits such as asset protection and potential tax advantages.

Non-Probate Assets vs. Probate Assets

It’s important to understand the distinction between non-probate assets and probate assets. Non-probate assets are those that pass directly to beneficiaries or surviving co-owners, while probate assets are subject to the probate process.

Proper titling of assets and beneficiary designations are crucial to ensuring that your assets pass as intended and avoid probate when possible. Improper planning can result in assets unintentionally being subject to probate.

Do You Have Questions About Probate in Florida?

Handling legal matters during a time of grief is overwhelming to say the least. This is where an experienced estate planning attorney can be invaluable.

An estate planning attorney can help you:

• Create a comprehensive estate plan tailored to your needs and goals
• Ensure your assets are properly titled and beneficiaries are designated
• Minimize the need for probate when possible
• Guide your family through the probate process when necessary

At Vollrath Law, our estate planning attorneys are dedicated to helping clients protect their assets and provide for their loved ones. We understand that every situation is different, and we take the time to listen to your concerns and craft a plan that meets your specific needs.

If you have questions about probate, estate planning, or how to protect your assets, don’t hesitate to reach out to Vollrath Law. Our experienced attorneys are here to guide you through the process and provide the peace of mind that comes with knowing your affairs are in order. Contact us today to schedule a consultation.