Summary Administration vs. Formal Administration

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If someone close to you has recently passed away, then you might be trying to handle his or her assets. When you’re mourning the loss of a loved one, dealing with the hassles of probate law can be particularly challenging. It’s important to make the right choices along the way, such as by choosing between summary administration or formal administration. This decision might seem complicated, but asking yourself the questions below and working with a good probate lawyer can help you make the right choice.

What is the Value of the Decedent’s Assets?

One of the first things that you should look at is the value of the decedent’s assets. Summary administration is only an option if the assets at hand are worth $75,000 or less or if the decedent has been deceased for more than 24 months. Formal administration, on the other hand, can be used to handle assets of any amount.

Are There a Lot of Creditors?

Before funds from the deceased’s estate can be distributed to the beneficiaries, the deceased’s creditors may have to be paid. If there are not many creditors, then summary administration might be an option. Formal administration is typically the best option when there are a lot of known creditors.

How Much Information Do You Have?

The amount of information that you have about the deceased’s assets and debts will have a big impact on which probate option you should choose. With formal administration, a personal representative -- also known as an executor -- will be appointed. If you are eligible to serve, you may be the person who is appointed. A personal representative has a lot more access to information. With summary administration, there is no personal representative.

For example, if you are fully aware of all of the deceased’s assets, then you may want to opt for summary administration. If you are not completely sure of all of the property that the deceased owned or all of the money that he or she might have in the bank, on the other hand, you’re probably going to want to choose formal administration so that all of his or her assets can be accounted for. You’ll be able to find more information about the assets that are out there, and you’ll have the ability to do things like liquidate stocks if you choose formal administration and are appointed as the personal representative.

Additionally, if you don’t know much about the deceased’s creditors, formal administration might be the right choice. If you need to call and talk to a bank or loan company, you might not be given any information if you aren’t appointed as a personal representative. This can make it difficult to find out what is owed, and it can make negotiations impossible. If you’re appointed as a personal representative, on the other hand, you can call and negotiate, settle and pay off debts on behalf of the deceased.

Do You Think the Will Might Be Contested?

In many cases, handling a deceased person’s estate is fairly simple. All of the family members might have an understanding of what the deceased’s wishes for handling the estate were, and everyone might go along with the proceedings without any issues. In these situations, summary administration might be a sufficient way of handling an estate.

If you are afraid that the will might be contested or that someone might complain about how your loved one’s affairs are being handled, on the other hand, you should be prepared to handle these issues. With formal administration, you will have more of an ability to handle a contested will.

How Much Time Do You Have?

Formal administration does have its benefits. After all, you have a lot more power when you choose this probate option. However, you should be prepared for it to take a lot longer to handle your loved one’s case. These proceedings may take anywhere from four to 12 months, and it could take even longer if there are complications along the way.

Summary administration, on the other hand, is almost always the faster way to handle a person’s estate. Instead of taking up to a year, it normally takes three to five months when you choose summary administration. Of course, if issues pop up, it could take longer. For example, if someone contests the will, it can complicate matters and delay the process. Overall, though, summary administration is the ideal way to get your loved one’s estate taken care of as quickly as possible.

What is Your Budget?

Consider your budget for court costs, attorney costs and publication costs, as well as any other expenses that might pop up while the case is in probate. Summary administration is almost always the more affordable option for probate law.

Are You Hoping to Keep Matters Simple?

It’s no secret that handling a deceased person’s estate can be complicated and exhausting. If you’re hoping to keep matters simple, then you might find that summary administration is the appropriate choice. There is less work and less complication, although you don’t have as much power or as many protections if something goes wrong. If you want to ensure that everything is handled appropriately but if you don’t mind putting in a lot more time and work, then formal administration might be ideal.

Either way, hiring the right lawyer can help you make things easier on yourself. A probate attorney can help you make the right decisions and can keep you informed every step of the way.

Probate law can be very complicated. When making decisions like this and when handling your loved one’s estate and assets in general, it is important to seek legal assistance. If you are looking for a probate attorney in Florida, contact us at The Law Offices of David P. Folkenflik. We will be happy to tell you a little more about summary administration, formal administration and other matters related to probate law, and we can also help you with handling your legal situation.

"The information provided herein is simply a brief overview of the Florida law on this particular matter. It should not be relied upon for legal purposes, as the facts and circumstances to any specific legal matter may vary substantially from the limited explanation and application of often complicated legal rules and principles that may be addressed herein, or applicable in your particular legal matter. You should only rely upon legal advice provided to you by a licensed attorney who has had an opportunity to fully evaluate your particular legal matter".

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