Assets: What Assets Do NOT Go Through Probate? (Part 3)October 20, 2015
Homestead Protection Against Creditors for Your Principal ResidenceNovember 5, 2015
When a loved one passes, starting the probate process can seem like a daunting task. You may hear the terms “formal administration”
or “summary administration”
and not know what they mean or what the difference is.
In layman’s terms, a formal administration
is a full administration of the estate. Generally, you need to do a formal administration when the estate’s assets are greater than $75,000 excluding homestead property (basically the descendant’s primary residence) or when required in the Last Will and Testament. A formal administration takes more time, around six months to more than a year to complete, and cost more than a summary administration.
A summary administration
is generally faster and less expensive than a formal administration. If the estate is less than $75,000 excluding homestead property or the descendant has been dead for more than two years, a summary administration might be a better option.
However, even if the estate qualifies for summary administration, there are times it is not a better option, such as:
Minor Beneficiaries– If some of the beneficiaries are minors, the court might want a guardianship established to handle the minor beneficiaries’ property. However, the personal representative of a formal administration could avoid this through the Florida Uniform Transfers to Minors Act.
Missing Heir– You cannot probate an estate with a missing heir via a summary administration. You must use a formal administration.
Uncooperative Beneficiaries– If beneficiaries are being uncooperative with each other, a formal administration may be needed to sale property and finalize the estate.
To discover the best probate method for your circumstances, please contact one of our attorneys