Summary Administration and Homestead Real Property

Most Florida homeowners know that Florida has the strongest homestead laws in the country. Besides, a discount on property taxes, homestead laws provide protections from creditors. But, many homeowners don't realize that some of these protections extend to their heirs or beneficiaries when they die. And, even though the value of the homestead property exceeds the estate value of $75,000. to qualify for a summary administration of estate, the summary process can still be used.

Florida summary administration of estate is a faster way to settle an estate, and does not require an attorney. Here is the statute:

Florida Statute 735.203

(1) A petition for summary administration may be filed by any beneficiary or person nominated as personal representative in the decedent’s will offered for probate. The petition must be signed and verified by the surviving spouse, if any, and any beneficiaries except that the joinder in a petition for summary administration is not required of a beneficiary who will receive a full distributive share under the proposed distribution. However, formal notice of the petition must be served on a beneficiary not joining in the petition.

An estate with a value of more than $75,000 is called a formal administration of estate and an attorney is required.

When someone with Florida homestead property dies, the real property, the decedent's home is considered an exempt asset. The value of the homestead property is excluded from the $75,000 ceiling amount to qualify for the summary process and retains its protections as it passes to the heirs or beneficiaries.

For example, when Louise dies, she has as estate assets: her home which is homesteaded, and $5000. in a bank account. The value of her home as shown on the tax assessor's website is $200,000. and the bank account is in her name only. Even though the value of the estate exceeds $75,000. her estate can still go through the summary process, because the value of the homestead real property is excluded and exempt.

The benefit to her heirs or beneficiaries in being able to use the summary process are (1) no attorney is required; and (2) the filing fees are lower; and (3) the process is faster. The summary process is generally complete in 6-8 weeks, while the formal process can take 1-2 years. Since an attorney is not required, a beneficiary or personal representative can file the documents to settle the estate. So, Louise's heirs or beneficiaries can save money and receive their inherited assets in much less time.

The homestead exemption also provides protection against claims of creditors. Let's say, in this same scenario, Louise left outstanding credit card debt of $18,000. The credit card company could place a claim against the estate and be entitled to the funds in the bank account, but the credit card company would not be entitled to place a lien on the homestead property or force the sale of the homestead property for the remaining amount Louise owed.

Many of our FALDP members prepare documents for Summary Administration of Estate. Please contact us if we can help you with a Summary Administration of Estate. Visit our site or call 800-515-0496.