What Property Is Exempt From Probate In Florida?

In Florida, when someone passes away their estate, meaning the assets and liabilities they left behind, must typically go through the probate process. Probate is a legal process that has many purposes. It is intended to give creditors the opportunity to make claims against the estate for unrecovered debt, and to ensure that remaining property is distributed among the decedent’s heirs and beneficiaries.

While the majority of a person’s estate must go through probate after they pass away, there are several exemptions to the law. Below, our St. Petersburg estate planning attorney explains what these are in greater detail.

Jointly Owned Property with Right of Survivorship 

Property that is jointly owned with a right of survivorship transfers directly to the surviving owner when another owner passes away. For example, a married couple may own a home together. If one spouse passes away, the surviving spouse would immediately inherit the home and become the sole owner. Jointly owned property with a right of survivorship can ensure that surviving owners do not have to wait for probate to receive property.

It is critical that jointly owned property with rights of survivorship uses the correct legal language, because if it does not, it may result in a joint ownership without rights of survivorship. If property is not titled properly, the property may be subject to probate and create issues for the surviving owner.

Beneficiary Designations 

Certain assets such as retirement accounts, life insurance policies, and other investment accounts include a beneficiary designation. After a person passes away, the property is then transferred directly to the beneficiary and is not subject to probate.  It is important not to skip the beneficiary designation if your goal is to avoid probate. Although not as frequently discussed, beneficiary designations can also be added to checking, savings or money market accounts, which is referred to as a “payable-on-death” designation, and they can also be added to a brokerage or other taxable investment account referred to as a “transfer-on-death” designation.

Revocable Trusts 

When establishing a revocable trust, you retitle certain property into the name of the trust. The assets that you re-title into your revocable trust during your lifetime transfer to your beneficiaries at your death without having to pass through the probate court system. For example, if you own a home, you can create a revocable trust during your lifetime and retitle the residence into your revocable trust. After you pass away, the successor trustee will distribute the property according to the instructions within the trust without needing to go through the probate court system.

Our Estate Planning Attorney in St. Petersburg Can Advise You of Your Options 

When planning for your estate, there are many ways you can help your loved ones avoid the lengthy and expensive probate process. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning attorney can outline the options available, help you determine which one is right for you, and ensure that you and your family are protected. Call us today at 727-471-5868 or fill out our online form to schedule a consultation with one of our experienced attorneys and to get the legal help you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html