Exempt Property That Avoids or Passes Without the Need for Probate

When someone passes away, we naturally assume that all of their assets must go through the probate process, in order to ensure that the assets get transferred to whomever is supposed to get them. And that’s generally true–but it’s not true for every single asset.

Exempt Assets

Some property is considered exempt property. That means that the property can be passed on to whomever is supposed to get it, outside of the probate process. This allows property to be transferred quickly, efficiently, and without significant cost.

And better yet, property that passes outside of probate is also generally exempt from any claims that creditors may make on the estate.

In fact, even the personal representative of the estate, cannot take control over exempt property the way he or she could with other types of property.

Your Homestead

Your homestead will pass to whomever you designate, outside of the probate process–so long as the person inheriting the property is an heir. So, for example, someone with homestead property who passes away with a spouse or a child (or both) will not have to deal with the probate court managing or handling the transfer of that homestead property.

Any property that is designated (titled) as being owned with a “right of survivorship,” will pass to the survivor, outside of the probate process. This includes property owned by married couples as tenants in common. The transfer just happens automatically, by operation of law.

Note that anything tilted or labelled as “tenancy in common,” will have to be probated.

Existing Designations

Any property or assets that have a pre-existing designation as to who will get them on death, also avoids probate.

As an example, a payable on death account already says who gets the account assets on death. Likewise, life insurance benefits already designate who gets them on death.

However, this is only if an actual beneficiary is named–if you name “my estate” or similar language as the beneficiary of, say, life insurance proceeds, or a bank account, that will go through probate.

Personal Property

Furniture also does not go through probate, so long as the value is $20,000 or less. The same applies for up to 2 vehicles with a combined value of $2,000 (note that the $2,000 is equity in both vehicles, not the value of the vehicles themselves). The same applies for any prepaid college tuition programs.

Using Trusts

If you want to avoid probate completely–even with assets that are not exempt–you may want to consider setting up trusts. Property in trusts passes according to the provisions of the already established trust; there is no need for that property to go through probate. But that’s only if the property has already been transferred into the trust, before the death.

Did someone pass away? Ask our probate lawyers how we can help. Call the West Palm Beach probate law attorneys at The Law Offices of Larry E. Bray today.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0222/Sections/0222.13.html