When a person passes away in Florida, if his estate is large enough then a formal probate court process must be opened so that his debts can be paid in full and titles to assets can be transferred legally into the name of an heir or beneficiary. A Florida decedent cannot pass on debts to family members or a spouse.
Florida Probate
If a Florida decedent has property and retirement funds valued at $75,000 or more, then a formal probate court case must be opened upon her passing. Smaller estates and estates that do not contain any physical property assets may be eligible to go through a process known as "disposition without administration."
Assets and Debt Inventory
In the formal probate process, an estate executor is named to take care of the administrative issues for the estate. Some of the executor's duties include sending death notifications to creditors, posting notices in the newspaper and creating an inventory of all assets of the estate.
90-Day Claim Limit
When a formal probate process is used in Florida, creditors have 90 days to respond with a valid debt claim on the estate. If a creditor does not stake a claim in the allotted time, he has no future recourse for debt repayment.
Assets Pay Off Debts
All creditors that have claimed a legitimate claim on the estate within the 90-day claim period are paid in full from the assets of the estate. Assets are liquidated as needed to pay debt claims, court administration costs and funeral expenses. If an estate does not have enough assets to cover outstanding debts due, unpaid remainders of debts must be written off by the creditors.
Remaining Assets
If assets remain after the debts are paid, the court or estate executor distributes all remaining assets according to the terms of the decedent's will. If no will is available, the state of Florida will distribute the assets according to law, which usually means giving them to the closest living relatives.
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