By Jon Carroll
In April, Governor DeSantis signed a bipartisan piece of legislation into law, which makes a simpler probate option available to more Florida families. Probate is the court-supervised process used to transfer certain assets of a deceased person to the people entitled to receive them either as a beneficiary under a Will, or as an heir in accordance with state statute. And, when necessary, probate allows for the payment of the person’s debts and expenses. Effective July 1 of this year, Florida increased the value limit for estates eligible for summary administration from $75,000 to $150,000. The change was enacted as part of CS/HB 1337, which became Chapter 2026-57, Laws of Florida.
What does that mean for you and your loved ones? Summary administration is a streamlined form of probate intended for smaller estates (and estates where the decedent has been dead more than two years). Under Florida Statute § 735.201, an estate may generally qualify when the value of the property subject to administration in Florida, after excluding property exempt from creditor claims, does not exceed the statutory limit.
But what is property subject to administration and what property is exempt from creditor claims? Assets with designated beneficiaries do not count towards the value of the estate because they are not subject to administration. Typical examples include life insurance policies and retirement accounts with named beneficiaries. Payable on Death or Transfer on Death accounts are other examples of assets that are not subject to administration, as are assets held in a trust. But even certain assets subject to administration do not count towards the $150,000 ceiling. These are “exempt assets,” meaning they are exempt from creditor claims. The most significant exempt asset for most people is their homestead property.
Summary administration can be considerably more straightforward than formal administration. Rather than requiring the full process associated with a traditional probate administration, the court can enter an order distributing the estate’s assets to the people entitled to receive them. The Florida Probate Code allows the court to authorize immediate distribution of estate assets through the summary administration order.
It is important to recognize that the simplified process does not eliminate the need to address creditors. One of the primary jobs of probate administration is to identify and pay (when the estate’s assets allow) creditors. Before the court enters an order of summary administration, a diligent search and reasonable inquiry for known or reasonably ascertainable creditors must be made. Appropriate provision for creditors’ claims must be made to the extent assets are available.
While summary administration carries the advantage of speed, it may not be the right choice even when an estate qualifies. For example, significant or unknown creditors may make formal administration a more appropriate venue. Or an estate may have business interests that would benefit from a personal representative being appointed in formal administration.
For many families in Bay County and throughout Florida, this recent change could mean a faster and less complicated path through probate.
Jon Carroll is a licensed attorney. The information in this column is provided for educational and informational purposes only, and does not constitute legal advice, nor establish an attorney client relationship. Consult a qualified attorney in your jurisdiction for legal advice specific to your situation.
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