The Short Answer

In Florida, it depends on what type of “proceeds” you’re talking about and who is legally entitled to receive them. Many death benefits (like life insurance or certain plan benefits) can be paid directly to a trust trustee (or sometimes directly to named beneficiaries) and are generally not treated as probate estate assets. But if the proceeds are payable to the estate (or to the personal representative), they typically must be handled as estate funds and accounted for as part of the probate administration.

What Florida Law Says

Florida law draws an important line between (1) assets that are payable to the probate estate and (2) non-probate transfers, such as certain death benefits payable to a trust or other designated recipient. If a policy or plan names a trustee (under an existing trust or a trust created by a will) as the payee, the trustee—not the personal representative—receives and administers those funds under the trust terms. By contrast, when proceeds are payable to the estate or end up payable to the personal representative under the statute’s fallback rules, they become part of the estate administration and must be handled accordingly.

The Statute

The primary law governing this issue is Fla. Stat. § 733.808.

This statute establishes that many “death benefits” (including life insurance and similar proceeds) may be made payable to a trustee, and—unless paid to the personal representative under the statute’s limited fallback—those proceeds generally are not considered part of the decedent’s probate estate and are not subject to estate administration expenses and obligations in the same way as estate assets.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: Under Fla. Stat. § 733.808(3), if no trustee makes a proper claim within 6 months after death (or if evidence shows there will be no trustee), an insurer/obligor may pay the proceeds to the personal representative instead—changing how the funds must be handled and accounted for.
• Burden of Proof: Whether funds can bypass the estate often turns on the beneficiary designation language, the trust’s existence at death, and whether the trustee has authority and documentation to claim the proceeds—issues that can trigger disputes and require careful record support.
• Exceptions: Fla. Stat. § 733.808(4) contains an important carve-out if the trust instrument or will expressly opts out of the subsection’s effect, and there are also situations where proceeds may still implicate creditor/expense questions depending on how the overall plan is structured.

Trying to route payments “directly” without confirming the correct legal payee can create fiduciary liability, accounting problems, and beneficiary disputes—especially when an asset is mistakenly treated as non-probate when it is actually payable to the estate (or vice versa).

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.