Detailed Answer
When someone passes away in Florida, the personal representative (PR) of the estate steps into a key role to handle bills and expenses while the probate court supervises distribution of assets. Below are the steps and authorities under Florida law.
1. Appointment of Personal Representative
After filing a petition for administration, the court issues Letters of Administration to the PR, who gains legal authority to act on behalf of the estate. See Fla. Stat. § 733.201.
2. Opening an Estate Account
The PR should open a bank account in the estate’s name. This segregates estate funds from personal assets and allows payment of ongoing expenses such as mortgage, utilities, and insurance.
3. Paying Administrative Expenses
Florida law grants the PR power to pay reasonable expenses. Under Fla. Stat. § 733.608(1), the PR may pay:
- Funeral and burial costs
- Court filing fees and bond premiums
- Attorney and accountant fees
- Real estate taxes, insurance, and maintenance
- Utility bills and rent
4. Handling Creditors’ Claims
Florida requires notice to creditors within three months of the PR’s appointment (Fla. Stat. § 733.312). The PR reviews, disputes, or pays claims out of estate funds. Unpaid valid debts reduce the estate’s distributable assets.
5. Advance Approval for Large Expenses
If estate funds are low, the PR can petition the court for an order authorizing payment of specific bills or to borrow against estate assets. Such petitions help ensure creditor and beneficiary oversight.
6. Final Accounting and Closing
Once all debts and taxes are paid, the PR files a final accounting and, with court approval, distributes remaining assets to beneficiaries (Fla. Stat. § 733.710).
Key Takeaway: By opening a dedicated estate account, following statutory notice requirements, and using the PR’s statutory payment powers under Fla. Stat. §§ 733.607–733.608, you keep bills current and protect estate assets during probate.
Helpful Hints
- Track every transaction: keep receipts and bank statements.
- Maintain an expense log for utilities, taxes, and insurance.
- Notify service providers of the decedent’s death to halt unwanted charges.
- Request waivers or extensions for large bills if estate liquidity is low.
- Consult a probate attorney for complex assets or disputed debts.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.