When you're in the position of having recently lost a loved one, the legalities surrounding their estate can be confusing and overwhelming. You might have heard about different types of probate, but which type would apply to your specific case?


Read on to learn about how different estates are handled through Summary Administration and Formal Administration.

Different Types of Probate

There are two main types of probate: Summary Administration and Formal Administration. In short, smaller estates will generally go through Summary Administration while larger ones will go through Formal Administration. There are some exceptions, which will be covered below.

In addition, if the estate is so small that an attorney is not necessary, the estate can go through Disposition Without Administration. Florida Statute 735.301 outlines the process in further detail.

Formal Administration

Any estate worth over $75,000 in property or assets after exempt property and assets are accounted for will go through Formal Administration. Exempt property includes the following:

• Homestead Real Estate: The primary residence of the deceased (with some limitations), will not count towards the $75,000. To take advantage of this benefit, the individual should have claimed a homestead tax exemption (though not necessarily mandatory in some situations). This also offers a tax break, and the State of Florida allows each individual or married couple to claim one homestead property. The mortgage, if any, will remain with the property, but as a general rule no other creditors will be able to access it to pay their claims in probate; instead, it will go to the beneficiaries of the estate (so long as they are related to a certain degree to the deceased).
• Up to Two Family Vehicles: These are the vehicles, of unlimited value, that the deceased and any family members personally use(d), including cars, vans, & trucks, but not commercial vehicles.
• Household Effects such as kitchen items, furniture, artwork, and other items that were used in the deceased's home.
• Up to $1,000 in Cash

Formal Administration takes longer than Summary Administration; the minimum amount of time is six months, but on average, it takes about a year. This type of probate is also more expensive than Summary Administration for several reasons.

First, the filing fees are more expensive. Secondly, the compensation for the Personal Representative (sometimes called an executor in other states) is charged separately. A tax professional may need to prepare tax returns, and that fee is charged separately. These legal costs add up as the process unfolds.

Summary Administration

Those with estates valued at less than $75,000, after the above exemptions have been subtracted, can usually go through Summary Administration as long as there aren't many debts against the estate. This is a less expensive and faster way to settle probate because there are often fewer services and fees overall. Summary Administration does not work well, however, if there are assets that must be sold and liquidated within the probate administration.

There is another way that Summary Administration can be used regardless of the value of the estate: If the individual has been deceased for over two years, then Summary Administration can be used regardless of estate value. This is because creditors cannot make claims against the estate once two years have passed since the date of death.

Conclusion

Knowing whether to request Formal Administration or Summary Administration might not be cut-and-dry if you don't know the value of the deceased's estate, what debts they have and other details about their financial situation. Talking to a qualified probate attorney will help you understand the process and can make it less confusing and overwhelming.

Sources

• http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0735/Sections/0735.301.html