Following the death of a loved one, the debts of the deceased are sorted out in probate court, which then directs the distribution of assets according to the will, or absent a will, the laws of intestacy. Through summary administration, most states now offer smaller estates a less time consuming approach to traditional probate proceedings.
Assets Can Be Managed To By-Pass Probate
Ideally, families have the opportunity to organize affairs in advance of the death of a loved one. Careful planning not only alleviates stress, but also allows for assets to bypass the public probate process, enabling faster distribution to beneficiaries. Depending on state law, non-probate assets may include:
- Retirement accounts for which a beneficiary was named
- Life insurance proceeds
- Pension plan distributions
- Property held in a living trust
- Funds in a payable-on-death bank account
- Securities registered in transfer-on-death form
- U.S. savings bonds with a named beneficiary or co-owner
- Wages, salary, or commissions (up to a certain amount) owed to the deceased person
- Vehicles that go to immediate family members under state law
- Household goods and other items that go to immediate family members under state law (in some states).
Expediting Probate Through Summary Administration
Since most families do end up in probate court at some point, it is useful to know that many states now have expedited proceedings. Known as summary administration, expedited probate procedures are based on the value of the estate, and enable qualified families to bring closure to the affairs of the deceased faster than if the full probate process must be completed:
Most states allow simplified or “summary probate” as long as the value of the estate doesn’t exceed a specified total value. That limit, and what counts toward that limit, varies by state.Summary probate can usually be done without a court hearing or a time-consuming process. Instead, heirs can use an affidavit to get the assets released. They may need to petition the court for an order, but this is a one-time action. You will not need to go to court again if the petition is approved. A summary probate procedure eliminates full probate.
….Although states have different requirements for the summary probate process, there are similarities. The summary probate process begins when the executor or personal representative of the will files a petition. A surviving family member can file the petition for summary probate if there is no will. This must occur within a certain time after the decedent’s death.
In addition to recording the total value of the estate on a petition for summary probate, families are typically also instructed to submit the will if there is one, along with these types of supporting documents:
- A copy of the death certificate
- A list of heirs
- A list of estate assets
Usually there is a brief wait period after the petition is submitted, so that creditors can file claims. Then, outstanding debts are paid out by the estate, along with taxes. Once debts are resolved, heirs can receive the estate’s remaining assets, either in accordance with a will, or based on the state laws of intestacy. After the assets have been distributed, the estate is considered closed. Unless obstacles are encountered, summary probate can wrap up in just a few months, which is much shorter than the ordinary probate process.
Summary Administration In Florida
In Florida, for example, summary administration probate proceedings are available for estates that are valued below $75,000, and typically take just 1-4 months, as opposed to full, formal administrations which can take 12 months. It’s helpful to know that Florida exempts some assets so they do not count against the $75,000 threshold; examples of exempt assets include: “the decedent’s homestead property, household furniture, appliances, and up to two motor vehicles.” Typically, expedited probate proceedings for eligible estates in Florida involve these five steps:
- Petition filing: ….A beneficiary or named personal representative submits a petition for summary administration detailing the estate information, beneficiaries, assets, debts, and distribution plan.
- Court review: The court evaluates the petition filed.
- Entry of order: The court may approve or deny a Petition for Summary Administration….. If the Petition is approved, a Florida Order of Summary Administration is entered. This final order should list all assets along with the beneficiaries and specify how the assets are to be distributed according to the decedent’s will or Florida’s intestacy statute.
- Estate closure: The court concludes the estate proceedings and releases any necessary bond
- Asset distribution: The Florida court-certified order of summary administration is presented to the institution holding the assets and the funds are released … .This last step confirms the legal transfer of the estate’s assets to the rightful and qualified beneficiaries,effectively concluding the summary administration process.
Helpful To Know: Probate Bonds
It’s common for courts to require probate bonds, which serve as a guarantee that debts and assets will be properly handled in accordance with state laws and protocols. Probate bonds are sometimes alternatively referred to as estate, executor, personal representative or administrator bonds.
Colonial Surety Company makes it quick and easy to obtain all types of probate bonds via a user-friendly online service. Simply quote and obtain the required bond, and then instantly download and e-file it with the court.
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