Probate Shortcuts For Small Estates

Estate planning is not just for rich people, but it is certainly more fun to daydream about your loved ones inheriting property than it is to imagine them paying your outstanding debts until there is nothing left.  Probate is not fun for anyone, even if they inherit a sizable amount of property, but it is worse if, after going through all the hassle of probate, they end up in a worse position than before they undertook the selfless task of wrapping up a recently deceased family member’s financial affairs.  The good news is that, if the decedent did not own much property, it is often possible to settle the estate without going through the entire formal process of probate.  Alternatives to probate, such as summary administration or disposition without administration, are faster and less expensive than formal probate, but they can also expose the decedent’s heirs to some financial risks from which probate protects them.  To find out more about alternatives to probate for settling a deceased person’s estate, contact a Tampa probate lawyer.

Summary Administration for Small Estates

Summary administration is like probate in miniature.  Someone, usually a beneficiary of the decedent’s will, files a petition with the probate court requesting summary administration.  If the court accepts the petition, it will follow the instructions in the will and settle the estate, without all of the formalities of probate such as appointing a personal representative for the estate or publishing notices to creditors.  The petitioner who initiated the summary of administration is liable for any creditor claims filed against the estate for two years from the initiation of summary administration.

An estate is eligible for summary administration if the following conditions are met:

• The value of the decedent’s non-exempt assets is less than or equal to $75,000
• The decedent’s will does not contain provisions barring summary administration
• The decedent has no outstanding debts, except those owed to creditors who have consented in writing to the summary administration

Disposition Without Administration

Disposition without administration is even faster and simpler.  The petitioner simply requests a court order authorizing the distribution of the decedent’s assets without probate of the estate.  An estate is only eligible for disposition without administration if the value of the decedent’s non-exempt property is less than the cost of funeral expenses and of medical bills incurred during the last 60 days of the decedent’s life.

Your Estate Might End Up Tiny Even If It Doesn’t Start Out That Way

These eligibility rules apply to the value of the decedent’s assets at the time of death.  Some people die with a considerable amount of property, only to see it disappear when creditors file claims during probate; Medicaid asset recovery is a major cause of this.  If creditors claim all of the estate’s property before the estate settles, leaving nothing for the heirs to inherit, this is called an insolvent estate.  Avoiding an insolvent estate is one of the main goals of estate planning.

Contact David Toback About Probate in Times of Financial Distress

A Central Florida probate lawyer can help you act as personal representative of the estate of someone who owned little or no property.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

aboutfloridaprobate.com/2018/02/28/3-ways-to-probate-an-estate-in-florida/