Navigating the probate process in Florida can be complex and sometimes confusing. Florida has legislated three primary methods for court-supervised estate administration or “probate.” The most common is formal Administration, followed by the more informal summary administration (for estates less than $75,000), and for very small estates, disposition without Administration, under Section 735.301 of the Florida Statutes.
Understanding which process will govern your loved one’s estate can be confusing as many factors come into play. We will examine Formal Administration and Summary Administration in greater detail below.
Additionally, as a Tallahassee Estate Planning Lawyer, I have the pleasure of working with families to develop trust-based estate plans that generally bypass the probate process altogether. Schedule a time to meet with our experienced Tallahassee estate planning lawyer to discuss options available to you and your family by clicking this link.
What is Formal Administration?
Formal Administration is the standard probate process used for estates exceeding $75,000 or when Summary Administration is otherwise not applicable. It generally involves appointing a personal representative to administer the estate, which includes gathering assets, notifying creditors, paying debts, and distributing the remaining assets to the beneficiaries.
How Much Does Florida Probate Cost?
Costs for administering probate in Florida can vary significantly. However, many attorneys follow the compensation structure outlined in Section 733.6171 of the Florida Statutes. While these fees don’t need to be followed (the parties can agree on a higher or lower fee structure). The size and complexity of the estate dictate the terms, but a typical example of attorney fees under these guidelines, such as an estate with $500,000 in assets, would amount to $15,000: $3,000 for the first $100,000 and $12,000 for the remainder.
Section 733.6171(3) provides an additional breakout:
(3) Subject to subsection (2), compensation for ordinary services of attorneys in a formal estate administration is presumed to be reasonable if based on the compensable value of the estate, which is the inventory value of the probate estate assets and the income earned by the estate during the Administration as provided in the following schedule:
- Approximately $1,500 for estates having a value of $40,000 or less.
- An additional $750 for estates having a value of more than $40,000 and not exceeding $70,000.
- An additional $750 for estates having a value of more than $70,000 and not exceeding $100,000.
- For estates having a value in excess of $100,000, at the rate of 3 percent on the next $900,000.
- At the rate of 2.5 percent for all above $1 million and not exceeding $3 million.
- At the rate of 2 percent for all above $3 million and not exceeding $5 million.
- At the rate of 1.5 percent for all above $5 million and not exceeding $10 million.
- At the rate of 1 percent for all above $10 million.
Keep in mind that many factors can alter how much probate costs. These factors, known as extraordinary service under Florida Statutes, might be circumstances that generate additional fees, including but not limited to:
- A will contest
- Apportionment of estate taxes
- An adversarial proceeding or litigation by or against the estate
- Preparation of an estate’s federal tax return
- Additional legal advice
Probate can be costly for your loved ones after you pass on. This is one of the many reasons we encourage our clients to meet with a skilled estate planning attorney to design strategies in your estate plan, such as a revocable living trust, to avoid probate for your loved ones as much as possible.
What to Expect in a Formal Administration
This comprehensive process begins with filing a Petition for Administration pursuant to Section 733.212 of the Florida Statutes. The personal representative, often named in the will or appointed by the court, is responsible for carrying out the decedent’s wishes as outlined in the will or, if there is no will, per Florida’s intestacy laws. The personal representative will gather the assets, notify creditors and beneficiaries, and settle the estate. This process can take anywhere from several months to well over two years.
Please visit our blog post for further discussion on what factors to consider in selecting a personal representative.
What is Summary Administration?
Summary Administration is a simplified probate procedure available in Florida for smaller estates. This expedited process is applicable when the value of the entire estate subject to probate does not exceed $75,000 or the decedent has been deceased for more than two years. It’s a streamlined method that can bypass some of the formalities of traditional probate, generally resulting in a quicker distribution of assets to beneficiaries.
What to Expect in Summary Administration
To qualify for Summary Administration, an estate must meet specific criteria regarding its value or the time elapsed since the decedent’s death. It is ideal for cases where the estate has minimal assets, no real estate, or the debts have been settled.
Process of Summary Administration
The process involves filing a Petition for Summary Administration, which can be filed by any beneficiary or nominated personal representative. Once the court is satisfied with the petition’s details, it can issue an order releasing property to the heirs without appointing a personal representative or following all of the procedures and formalities of formal Administration.
Comparing Probate Administration, Summary Administration vs. Formal Administration
The critical differences between Summary Administration and Formal Administration lie in their applicability, the complexity of procedures, the time frame, and the costs involved.
- Applicability: Summary Administration is limited to smaller estates or those where the decedent has been deceased for over two years. In contrast, Formal Administration can be used for any estate not qualifying for Summary Administration.
- Complexity and Time Frame: Summary Administration is less complex and can often be completed within a few months. Formal Administration is more involved and typically takes longer to complete, sometimes spanning over a year.
- Cost: Due to its simplicity, Summary Administration is generally less expensive than Formal Administration, where the fees associated with the personal representative and more extensive legal work can quickly add up.
For tailored advice and assistance with your estate planning and probate needs in Florida, contact our Tallahassee Estate Planning Lawyer today to help you navigate these processes confidently and efficiently, providing peace of mind that your loved one’s legacy is honored and protected.
