Estate administration can be a complex process, especially when an estate includes property in multiple states. In Florida, administration rules vary depending on whether the deceased left a valid will (testate administration) or died without a will (intestate administration). Navigating these legal complexities requires working with an experienced estate planning attorney in Miami who understands all the ins and outs.
Stokes McMillan Antúnez Martinez-Lejarza P.A. is a full-service Florida trusts and estates law firm providing services including, but not limited to, probate, estate planning, trust & estate administration, and trust and estate litigation. If you have any questions or wish to hire our firm, please contact us.
Initial Assessment After a Passing
The first step after a loved one’s passing is to conduct an initial estate assessment. This involves gathering information to determine the next steps, including:
Check for Will or Trust Documents
The most critical part of this initial review is determining if the deceased left behind a last will and testament or a revocable living trust. The presence or absence of these estate planning documents dictates how the administration will proceed. You’ll also want to confirm the validity of any will or trust found. An estate planning attorney can help review and verify these documents.
Identify Assets and Liabilities
Compiling a list of the deceased person’s assets and liabilities gives a clear picture of what comprises the estate. This helps determine what needs to be administered during probate or trust settlement. Assets may range from financial accounts to life insurance, to valuable personal property and real estate. Identify each asset’s ownership and beneficiaries – this determines what transfers by operation of law at death or through estate administration.
Check for Special Circumstances
An initial assessment should uncover special factors that could complicate or prolong administration. These include multi-state assets, estate tax liability, business interests, minor children as beneficiaries, and estate disputes between heirs. Understanding these upfront allows appropriate planning.
Carefully going through this preliminary fact-finding helps uncover key information upfront so you can decide on the next steps and strategy. Relying on an estate planning attorney during this assessment provides professional guidance each step of the way.
Petition the Court to Open Probate
If the deceased left a valid will, the estate will go through a court-supervised testate probate process. If there is no will, intestate probate proceedings commence. Either way, the probate process starts by petitioning the court to admit the will (if any) and appoint an estate administrator.
File Paperwork with the Court
To open probate, certain papers must be filed with the probate division of the local circuit court. This includes a petition to commence administration along with the death certificate, will (for testate probate), and other supporting documents. The petition requests the appointment of an estate administrator – either a personal representative named in the will or an administrator appointed by the court (for intestate estates).
Serve Notice to Beneficiaries
Before a court grants a petition to open probate, all legal heirs and beneficiaries must receive formal notice of the proceedings. This due process requirement gives interested parties a chance to voice any objections or concerns early on. The petitioner arranges the service of notice according to strict procedural rules.
Attend Court Hearing
The court holds a brief hearing to consider the filed petition and any objections after proper notice occurs. If everything meets legal requirements, the judge issues Letters of Administration empowering the appointed personal representative or administrator to act on behalf of the estate. The estate administration process now kicks into high gear.
An estate planning lawyer handles all the complex filings, service of notice, court hearings, and securing Letters of Administration to open probate procedurally correct the first time.
Inventory Estate Assets and Liabilities
A probated estate can’t be administered until all assets and liabilities get officially determined through an estate inventory. Typically, the appointed personal representative handles this task with assistance from professionals like attorneys and appraisers.
Categorize Every Asset
The inventory lists every estate asset the deceased owned or had an interest in as of the date of death. No asset gets overlooked, no matter how small or inconsequential it seems. Real estate, financial accounts, retirement funds, household items, intellectual property, claims owed to the deceased – everything gets identified and valued. If a revocable trust exists, these assets are listed separately.
Appraisal of Significant Assets
Any real estate, business interests, financial investments, collectibles, or valuable personal property requires a professional appraisal to substantiate its fair market value. For real estate, also confirm legal ownership and mortgage balances through title searches. Obtain all past tax returns too. Getting credible valuations often requires working with an appraiser, commercial real estate agent, business valuation professional, or other outside professionals.
Finalize Inventory with Attorney Approval
With all assets researched and evaluated, the complete inventory is compiled into a master spreadsheet. The estate administrator submits this for court filing after review and approval from the attorney. This inventory guides all further administration. Keep multiple copies handy as a reference.
Compiling a comprehensive, accurate inventory is challenging without proper guidance. In Florida, an estate planning attorney serves as an invaluable resource throughout this entire process.
Manage the Estate Administration Process
Once the court officially appoints an estate administrator and assets get inventoried, the actual administration work kicks into high gear. This lengthy process has many moving parts requiring close coordination under strict court supervision.
Pay Debts and Expenses
Before distributing assets to heirs, the estate must settle legitimate debts and administration costs. Typical expenses include funeral bills, medical expenses, credit card balances, taxes, probate fees, appraisal costs, legal fees, accounting fees, property maintenance bills, etc. The personal representative identifies all valid creditors and handles paying amounts due.
File Tax Returns
In addition to the deceased person’s final individual tax return, the probated estate must also file income tax returns for every year the administration remains open. Required filings vary by assets owned and income generated. Working with a tax professional keeps taxes properly paid so beneficiaries avoid liability later.
Manage Assets During Administration
While probate runs, assets require active management to preserve their condition and value. For example, property upkeep, account distributions to cover estate expenses, collecting outstanding debts, selling assets when necessary, ensuring adequate insurance, handling trust administration separately, monitoring business interests, establishing protective trusts for minors, etc. Thorough management protects the estate.
Keep Detailed Accounting
Every financial transaction or activity needs meticulous record-keeping during estate administration. Detailed accounts prevent confusion if questions arise regarding specific administration decisions or expenditures. Accurate documentation also serves as a basis for the estate accounting required before closing probate.
Skilled administration leadership prevents poor decisions from depleting estate assets during probate settlement. An estate planning attorney brings that technical experience so heirs receive their full inheritance.
Distribute Remaining Assets to Beneficiaries
The final step in closing out probate involves distributing all remaining assets after estate debts and expenses get paid. For testate administration, assets are distributed according to will instructions. Under intestacy law, the deceased person’s heirs at law receive prescribed shares.
Obtain Court Approval First
Before the administrator or personal representative distributes any inheritance, proper account approval must come from the probate court. This involves filing a formal petition and supporting documentation affirming that the administration has handled it appropriately thus far. Account approval certifies that distribution now complies with the law.
Divide Assets According to Will or Law
Once the court confirms, assets are now ready for release to heirs and devisees according to titling or beneficiary designations. For probate assets without clear beneficiary documentation, the personal representative divides those evenly in line with provisions in the will or intestacy statutes. At this point, distribution requires signing over titles, recording deeds, retitling accounts, issuing beneficiary checks, etc.
Close Estate Administration
After distributing all assets and obtaining their acknowledgments, wrap up administration by formally closing probate with a final proceeding. The court discharges the personal representative from further liability once all administration matters are resolved. This last court order officially concludes the estate administration process.
Navigating such detailed asset distribution requires guidance from those well-versed in probate law and procedure. In Florida, a Miami estate planning attorney brings this distribution skill set so heirs promptly receive their rightful share of the inheritance.
So in summary, these five essential steps serve as a roadmap through the probate process administering an estate:
- Initial assessment after passing
- Petition court to commence probate
- Inventory assets and liabilities
- Manage ongoing administration
- Distribute remaining assets to heirs
While this gives a high-level overview, many additional complexities exist when navigating estate administration in real-life applications. Having a Miami estate planning attorney assisting as your estate is administered provides sizable benefits for both personal representatives and beneficiaries.
Frequently Asked Questions About Estate Administration
Handling estate administration raises many common questions concerning legal requirements, processes, expenses, and other issues. Here are answers to some often-asked probate and administration FAQs:
- Why Choose A Probate Attorney?
A probate and estate administration attorney brings professional legal knowledge to navigate process intricacies correctly. This skill set significantly benefits personal representatives and beneficiaries by preventing procedural mistakes, minimizing tax liabilities, creating estate planning trusts to protect assets, resolving creditor issues, avoiding inheritance disputes, and maximizing what heirs receive.
- What Factors Determine The Cost?
Several variables drive overall expense when administering an estate including asset types, property locations, estate size, income generated, business interests owned, beneficiary situations, estate disputes, and the time for administration. Reasonable attorney and administrator fees also factor into administration costs.
- What Gets Decided About Personal Property Distributions?
For personal belongings like jewelry, artwork, collectibles, and household items, the will often contains a memorandum with distribution instructions or authorizes the personal representative to divide property at their discretion. Beneficiaries can make special requests too. Items not specifically distributed are sold or liquidated.
- Should I Require A Release When Distributing Inheritance?
Personal representatives often have beneficiaries sign a refunding agreement or release acknowledging receipt and approving final distribution amounts. This shows heirs received assets rightfully entitled to. Holding back a small percentage until the administration closes provides leverage ensuring cooperation in finalizing estates.
- Who Ensures Accurate Asset Valuations?
Estate administrators rely on professional appraisers to value significant real estate, business holdings, financial assets, personal property, and intellectual property. Attorney involvement reviewing an inventory before court filing provides an additional layer validating listed asset valuations seem reasonable and appropriate.
Proper administration takes patience in navigating the intricate legal process requiring attention to important details. Having a Miami estate planning attorney guide you through makes all the difference protecting heirs.
Conclusion: Seek Professional Guidance Administering Estates
As highlighted in these five administration steps, probate and trust settlement involve many special considerations. Without legal training on procedural complexities, missing a requirement or deadline could lead to serious consequences negatively impacting heirs down the road.
Rather than risk mistakes amateur administration brings, retain a Miami estate planning attorney to steer the process. Protecting beneficiaries and smoothly administering estates is what probate attorneys do day in and day out. That seasoned experience and oversight more than makeup for the reasonable fees charged.
Stokes McMillan Antúnez Martinez-Lejarza P.A. is a full-service Florida trusts and estates law firm providing services including, but not limited to, probate, estate planning, trust & estate administration, and trust and estate litigation. If you have any questions or wish to hire our firm, please contact us.
DISCLAIMER
This article was partly generated by the use of artificial intelligence or AI, and is provided as general information for educational purposes only. This article is not intended to provide specific legal advice, and should not be relied upon as a substitute for competent advice from a licensed attorney. To speak with one of our attorneys all you have to do is click here. If you’re interested in more in-depth ruminations on this area of the law written 100% by a live human being, visit the Florida Probate & Trust Litigation Blog by going to the home page for firm partner Juan Antunez.