2. What do the terms “testate” and “intestate” mean?
a. Testate means the deceased person prepared a will and the will determines how the decedent’s estate will be handled.
b. Intestate means the person died without a will and the assets will be distributed according to Florida law.
3. What are the different ways of administering an estate?
a. Summary Administration
i. Allowed when
1) the estate is valued at less than $75,000
2) the decedent has been dead for more than two years
ii. It is usually easier, less expensive, and takes less time than Formal Administration
iii. However, the executor needs to be careful that there are no “lurking debtors” that may come back and ask to be repaid after the Administration is complete
1) The executor needs to inform the probate attorney about all debtors
2) Those debtors must be contacted and allowed to present their claim
3) If there is enough money to pay off debts, those debts must be dealt with
iv. Summary Administration can take between four weeks to one year
b. Formal Administration is required when an estate is valued at more than $75,000
i. An executor or other interested party asks to be appointed the “personal representative” of an estate
ii. The personal representative hires an attorney to assist with the Administration process
iii. The personal representative asks the court to provide “Letters of Administration” which will allow him or her to settle the estate
iv. The personal representative (or an attorney) must file the will with the court and the will must be shown to be valid (in other words, that it was properly signed and witnessed and that the will that is submitted to the court is an original will)
v. The personal representative then gathers and inventories the decedent’s assets
vi. A Notice to Creditors must be published in the county where the decedent lived; those creditors then have three months to submit a claim to the court
vii. The personal representative then settles the claims with the creditors on behalf of the estate
viii. After the assets have been distributed to the debtors, heirs, or beneficiaries, the personal representative must file paperwork with the court asking that the estate be closed
x. Formal Administration can take six months to a year, and sometimes longer
4. What is the cost of Probate
a. Filing fees with the Circuit Court
b. Attorneys’ fees, which are set out by Florida law, (see Florida Statutes, Chapter 733.6171)
i. Estate valued at $40,000 or less, the fee can be no more than $1500
ii. $40,000-$69,999: $2250
iii. $70,000-$99,999: $3000
iv. $100,000-$999,999: $3000 + 3% of the value over $100,000
v. See the Florida Statutes for estates over $1million
5. What are some of the responsibilities of a personal representative?
a. Collect and protect assets, including the decedent’s business
b. If the decedent owned a business, the personal representative must decide whether to continue the business, hire someone to manage it, or sell it
c. Inventory the assets and assign a fair market value to them
d. Collect outstanding debts that are owed to the estate
e. Prepare a tax return