According to Florida law, homestead property, payable on death accounts, life insurance proceeds, joint tenancy with right of survivorship property, assets in trusts, retirement accounts, and certain statutory listed property are all assets exempt from probate and/or pass directly to beneficiaries without the need for a probate administration:
1. Homestead Property: Homestead property passes outside of the probate estate and is not subject to administration by a personal representative(s). This property is protected and does not become part of the probate estate unless specified in the will to be sold and the proceeds divided.
2. Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts: These accounts are considered “will substitutes” and transfer ownership of funds, by contract, directly to the designated beneficiaries upon the account holder’s death, bypassing probate.
3. Life Insurance Proceeds: Life insurance proceeds are exempt from the claims of creditors and do not require probate administration. Under the life insurance contract, these funds are distributed directly to the named beneficiaries.
4. Joint Tenancy with Right of Survivorship: By operation of law, property held in joint tenancy with right of survivorship passes directly to the surviving joint tenant(s) upon the death of one tenant, thus avoiding probate.
5. Inter Vivos Trusts (Living Trusts): Assets placed in a living trust are managed by a trustee and pass to beneficiaries according to the terms of the trust agreement, without going through probate.
6. Retirement Accounts (e.g., IRAs): Under the terms of the account agreement, the proceeds of individual retirement accounts (IRAs) pass directly to the named beneficiaries upon the account holder’s death and do not go through probate.
7. Exempt Property Under The Florida Probate Code: Under Florida Statutes 732.402, certain property is exempt from the claims of creditors and does not require a probate administration. This includes household furniture, furnishings, and appliances up to a certain value, two motor vehicles, qualified tuition programs authorized by section 529 of the Internal Revenue Code, and teachers and school administrators death benefits.
Related:
- What assets must go through probate in Florida?
- Who Has Preference as a Personal Representative in Florida
- Powers and Duties of a Personal Representative in Florida
- Selling Real Estate During Probate in Florida
- Transfer of Florida Real Estate after Death
- Is A Widow Responsible For Her Husband’s Debt In Florida?
- Formal Probate Administrations
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