Summary vs. Formal Administration: What’s the Difference?

Probate: Navigating the Legal Process of Estate Settlement in Florida 

Probate is a legal process that takes place after the passing of an individual to settle their estate. It involves the closure and distribution of funds from financial accounts, division of personal possessions, handling of creditor claims, and estate valuation. As probate can be time-consuming, understanding your options as a beneficiary or personal representative is crucial. In Florida, there are two primary types of probate: summary administration and formal administration. To make informed decisions, it’s important to comprehend the nuances of each approach. 

Understanding Summary Administration 

Summary administration offers a simplified probate procedure designed for small estates. It is characterized by shorter timeframes and lower costs compared to formal administration. However, this process is only applicable to estates that meet specific criteria, outlined below: 

Qualifications for Summary Administration 

To qualify for summary administration, the estate must satisfy at least one of the following conditions: 

  • The estate’s total value is under $75,000. 
  • The decedent passed away over two years ago. 
  • Creditors are legally prohibited from making claims against the estate. 
  • The decedent’s sole assets are exempt from probate. 
  • The decedent’s sole assets are exempt from creditor claims. 

For detailed eligibility guidelines, refer to Florida Statute 735.021. 

Summary Probate Procedure 

The steps involved in summary administration in Florida are as follows: 

  1. Petition for Summary Administration: Any beneficiary or appointed personal representative can initiate a petition for summary administration during probate proceedings, provided the estate meets the specified criteria. The petition must include documentation verifying the estate’s value, encompassing financial accounts, real property value, and business assets if applicable. 
  1. Creditor Search: To qualify for summary administration, creditors must be unable to file claims against the estate. As part of the petition process, comprehensive documentation demonstrating diligent efforts to identify potential creditors and eliminate valid claim possibilities must be presented. 
  1. Asset Distribution: Upon confirming the estate’s eligibility for summary administration and completing the creditor search, a judge issues the summary administration order, effectively concluding probate. The judge’s order can then be presented to relevant institutions, such as banks and insurance companies, to facilitate the distribution of assets to beneficiaries. 

Formal Administration: A Comprehensive Process 

Formal administration is the predominant probate method, especially for executing a will. The timeline for formal administration typically spans six months to a year or longer, depending on the complexity of the estate. 

Qualifications for Formal Administration 

Formal administration is mandatory for estates with probatable assets exceeding $75,000. This form of probate is also required if the will is contested, even if the estate’s value falls below $75,000. 

Steps of Formal Administration 

The formal probate process in Florida encompasses the following steps: 

  1. Petition of Administration: Formal administration commences when the estate’s personal representative provides necessary documentation, including the death certificate, financial statements, and the will, to a probate attorney. Subsequently, the attorney files a formal petition of administration with the probate court in the county where the decedent was a resident. 
  1. Validation of the Will: The probate judge verifies the validity of the will and grants legal authority to the designated personal representative to execute the will. 
  1. Beneficiary and Creditor Notification: The personal representative informs all beneficiaries listed in the will about initiating probate proceedings. Moreover, the personal representative is responsible for notifying potential creditors with claims against the estate. This notification process adheres to the formalities specified in Florida Statute 733.2121. Creditors are granted a 90-day window, starting from notification, to file claims against the estate. 
  1. Estate Valuation: The personal representative gathers documentation and assets to assess the estate’s value and establish an estate bank account. Assets might need to be liquidated to settle valid creditor claims. The estate bank account funds the repayment of creditors. 
  1. Probate Conclusion: After addressing all creditor claims, beneficiaries are entitled to the assets delineated in the will. Upon asset distribution, the attorney files a petition of discharge, marking the formal conclusion of the probate process. 

Legal Expertise for Smooth Estate Proceedings 

Navigating the intricacies of probate is essential to ensure a smooth estate settlement process. Whether you are a personal representative or responsible for handling someone’s estate, understanding your options can save both time and resources. If you are seeking expert guidance in estate planning and probate matters, contact the Boutty Law Firm at (407) 622-1395. Our dedicated team is here to assist Orlando and Central Florida residents, helping you make informed decisions during probate proceedings. 

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