When someone dies, in most cases their estate must be probated to determine who will inherit which assets. The process can be costly and time-consuming, and it opens the estate to often unwanted public scrutiny. Fortunately, there are ways to avoid or minimize the impact of probate. In fact, certain types of assets are exempt from probate, which means fewer resources have to be devoted to the process. Verras Law is proud to help clients develop customized estate plans and inform their families what to expect down the road. Learn more about how we can serve you.
What Is Probate?
Probate is typically necessary for most estates. It is a court-supervised process to identify estate property and, ultimately, distribute it to the estate’s rightful heirs. In addition to the time and money it takes to probate an estate, the process is also public. This means just about anyone can determine what a person (the decedent) owned at the time of their death and what the decedent’s heirs will inherit. This is to say nothing of the emotional difficulty that attends finalizing one’s estate through probate.
Assets That Skip Probate
Fortunately, Florida law allows certain property to be exempt from probate. Not only do these assets bypass probate, they can quickly end up in the hands of family members who may need or want them.
Homestead Property
As an exempt item of property, a homestead does not go through probate and is not included as part of the estate for purposes of paying creditors. The homestead passes directly to the surviving spouse or heirs, ensuring they have a place to live right away. Since the homestead does not have to be used to pay estate debts, there cannot be a forced liquidation sale to come up with money for this reason.
College Tuition Plans
The Florida 529 Savings Plan is a wonderful tool to put away money to pay for your child’s college education. A similar program is the Florida Prepaid College Plan. These accounts are exempt from probate because the state has an interest in ensuring that the intended beneficiary has access to these funds without having to undergo the hassle of probate. Also, by skipping probate, the money in these accounts does not have to be used to pay court costs and lawyer fees.
Automobiles
The state allows up to two automobiles to be exempt from probate, provided they are regularly used as personal vehicles either by the decedent or the decedent’s immediate family. In the same way that exempting the homestead ensures a continued dwelling place for surviving family members, this rule provides peace of mind to families by guaranteeing they have a mode of transportation. Importantly, it must be noted that this exemption doesn’t absolutely guarantee that the automobiles will not eventually be used to pay for estate debts.
Household Furnishing
Household items up to a certain value are also exempt from probate. The rationale here is that surviving spouses and heirs should not be deprived of basic living necessities because of probate. There also may be furniture or other items that have sentimental value that the law has decided should stay out of probate. Documenting these items and appraising their values during the estate planning phase can facilitate the use of this exemption once probate begins.
Put Our Experience to the Test
While probate cannot always be avoided, there are certainly ways (like identifying the above assets) to minimize an estate’s involvement with it. There are other tools like trusts, joint ownership with right of survivorship accounts, and accounts with beneficiary designations that can bypass probate. Learn why so many estate planning clients trust Verras Law. Call us today.