What is Probate?
Probate is the court-supervised process of settling a deceased person’s estate, which includes paying all of the debt, taxes, estate expenses, and ultimately transferring the assets to the rightful heirs. But what assets? Probate assets are assets that are not automatically transferred to the beneficiaries when the original owner passes away.
Under Florida law, some of these assets are protected from creditors. If you want more information on which Probate assets are protected from creditors, please read Florida Probate Code, Section 732.402. However, some assets are exempt from the Probate process entirely.
What Assets are Exempt from Probate?
Under Florida law, assets that are exempt from Probate include, but is not limited to the following:
1. Designated Beneficiaries: Certain assets such as bank accounts, insurance policies, and other financial assets allow the owner to designate beneficiaries, so when the original owner dies the assets automatically transfers to those named beneficiaries.
2. Revocable Living Trusts: Similar to the example above, when assets are transferred into a Revocable Living Trust, the Trust itself will designate its beneficiaries.
3. Transfer on Death: Similar to the first example above, some financial institutions will allow the owner to designate a beneficiary, so when the owner passes away, the asset will automatically transfer to the new owner. i.e., The asset transfers on death to the designated beneficiary.
4. Joint Tenants with Right of Survivorship: This is a type of joint ownership, such as a two owners on a bank account, that allows an owner’s interest to transfer to the other owner upon their death. The same type of ownership can be placed on real property.
5. Tenancy by the Entirety: Same concept as #4, but is strictly reserved for the use of married couples.
If you want to read more on Probate, kindly read What is Probate?
How Do I Avoid Probate Entirely?
A well thought-out Estate Plan will avoid the need of Probate. The problem is that many people, if not the majority, do not place much thought on the subject matter, Estate Planning. For whatever reason, people see it as an unnecessary thing to do. And when they do think about it, it’s usually a Last Will and Testament, which doesn’t avoid Probate. It’s a great start, but not the only thing one should consider. Why? Because a Will by itself won’t avoid Probate. If you want to learn more about a Will and why it doesn’t avoid Probate, read Will a Last Will and Testament Avoid Probate?
What if I Have More Questions About Avoiding Probate?
If you are interested in a speaking with a Probate Attorney, kindly call our office anytime at 813-897-0295, and schedule your consultation.
Leave a Reply