Probate court proceedings are necessary when a person passes away owning property that does not have a “payable upon death” provision, joint owner, or beneficiary designation. The only way to transfer property in this situation is to open an estate in probate court. However, Florida law provides for either summary or formal administration of an estate, depending on the circumstances. Consult a Hallandale Beach estate planning attorney at Kramer Green for advice about the administration of estates in probate court and developing your family’s estate plan.
Summary v. Formal Administration
Under Florida Statutes Section 735.201, summary administration of an estate is an available option only when the total value of the probate assets is less than $75,000 (not including the primary residence) or if the individual passed away more than two years before the estate filing. If none of the above situations apply, the only option is formal administration of the estate. In some cases, formal administration is necessary even if the total value of probate assets is less than $75,000, due to unresolved debts and/or complex assets that require liquidation before distribution can occur.
Summary administration does not require that the probate court appoint a personal representative for the estate. This type of administration typically lasts three to six months, is less complex, and requires less documentation. As a result, beneficiaries of the estate receive their assets more quickly than in a formal administration.
On the other hand, formal administration requires the probate court to appoint a personal representative for the estate, who is responsible for gathering all pertinent information about the deceased person’s assets and debts. The personal representative has access to all financial information and handles all claims against the estate from creditors. The court supervises every step of formal administration, which can help resolve disputes between beneficiaries and other interested parties. Formal administration averages six to 18 months in length, requires more steps to complete, and typically costs more than summary administration.
Steps in a Formal Administration
Although every estate is different, the typical steps in a formal administration include the following:
- Filing a petition for administration of the estate and requesting the court to appoint a personal representative;
- Notifying creditors of the estate and allowing time for them to submit claims for debts owed by the estate;
- Conducting an inventory of all estate assets and debts, as well as getting assets appraised, if necessary;
- Paying debts, taxes, and creditor claims against the estate; and
- Distributing assets to the beneficiaries according to the terms of the will or Florida’s laws of intestate succession (if there is no will).
Frequently Asked Questions (FAQ)
Does summary administration work the same way as formal administration?
Generally, summary administration and formal administration operate similarly. The main differences between the two are that a formal administration requires the appointment of a personal representative and more court oversight.
Who can file a petition for summary administration?
Any beneficiary or person nominated as a personal representative in the deceased person’s will can file a petition for summary administration. The petition must be signed by the surviving spouse, if any, and any beneficiaries. The only exception is if a beneficiary will receive a full distributive share under the proposed distribution of assets. In that case, the beneficiary need not join in the petition but only must receive formal notice of the petition.
How long do creditors have to file claims against an estate?
Under Florida Statutes Section 733.702, creditors must file their claims on or before the later of three months after the date of the first publication of the notice to creditors or, as if the creditors must be served with a copy of the notice to creditors, 30 days after the date of service on the creditor.
Call Kramer Green for Personalized Estate Planning Advice
Whether you need advice about opening an estate for a deceased loved one or embarking upon the estate planning process, an Aventura estate planning lawyer at Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A. can assist you. We can help you draft or update your comprehensive estate plan, file an estate on behalf of your deceased family member, or handle probate-related litigation.
Allow us to help you navigate through the complex world of estate planning. Contact our office today at (954) 966-2112 or online to schedule a time to discuss drafting a will and related estate planning issues with our Fort Lauderdale estate planning attorney.