Formal Administration in Florida

You can identify “probate assets” in Florida as property that was owned solely by the deceased person at the time of their death. According to Florida law, if an asset does not have a provision for automatic transfer of ownership upon death, it is a probate asset. Examples include bank accounts, vehicles, and real estate titled only in the decedent’s name, or with another person as “tenants in common.” Conversely, “non-probate assets” bypass the court process entirely because ownership transfers automatically. Common examples of non-probate assets include life insurance proceeds, retirement accounts, and Payable-on-Death (POD) or Transfer-on-Death (TOD) accounts, as long as a beneficiary is named. Property owned by a married couple as “tenancy by the entirety” also automatically passes to the surviving spouse. Furthermore, in Florida, homestead property, up to $20,000 in household furnishings, and two motor vehicles are generally exempt from creditor claims and may transfer outside of probate under specific conditions. To confirm the status of a specific asset, such as real estate, it is always best to have an attorney examine the deed or financial institution documentation. Ultimately, probate is necessary only to legally retitle those assets that have no other mechanism for transfer upon the owner’s death.

The Notice of Administration is a formal document in Florida probate, mandated by Florida Statute §733.212, which officially notifies interested parties that a formal estate administration has commenced. Its primary purpose is to inform recipients about the court proceedings, including the name of the Personal Representative and the estate’s file number. Crucially, the Notice provides a deadline for any interested person to file an objection challenging the validity of the will, the venue, or the court’s jurisdiction. Objections must generally be filed on or before three months after the date of service of the Notice. The Personal Representative is required to promptly serve a copy on the decedent’s surviving spouse. It must also be served on all beneficiaries of the estate and certain trustees of the decedent’s trusts. Furthermore, the Notice is required for any persons who may be entitled to claim exempt property from the estate. The Personal Representative may also serve the Notice on other parties who may claim an interest, such as heirs disinherited by the will.

If a Florida estate lacks sufficient funds to pay all valid debts, it is considered insolvent, and the Personal Representative must follow a strict statutory priority list. Florida Statute §733.707 divides all estate expenses and obligations into eight specific classes, with Class 1 being the highest priority. The first class to be paid includes the costs and expenses of the estate’s administration, along with the compensation for the Personal Representative and their attorneys. Next in line is Class 2, which covers reasonable funeral, interment, and grave marker expenses, though this is capped at an aggregate of $6,000. Subsequent classes include federal taxes, medical expenses from the last 60 days of the decedent’s final illness, family allowance, and court-ordered child support arrearages. All other claims fall into the final, lowest priority class (Class 8), including most credit card and general unsecured debts. The Personal Representative must fully pay all claims in a higher class before moving to the next. If the available assets are insufficient to satisfy all claims within a single class, all creditors in that class are paid ratably, meaning they receive a proportional share of the remaining funds. Consequently, any lower-priority classes of creditors will receive nothing, and beneficiaries will receive no distributions. Crucially, Florida law provides that a beneficiary is not personally liable to pay the decedent’s unsecured debts out of their own money.