Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
When someone passes away in Florida, a personal representative serves as the estate’s administrator. Your objective is to calculate the net estate by subtracting debts and administrative expenses from total assets. Follow these steps under Florida law:
1. Inventory and Appraise Assets
Compile a full list of the decedent’s property at death, including:
- Real estate
- Bank and investment accounts
- Vehicles and personal property
- Retirement plans and life insurance (if payable to the estate)
Obtain professional appraisals for real property or valuable items. A complete inventory establishes the gross estate value.
2. Identify and Classify Liabilities
Gather all outstanding debts and claims, such as funeral expenses, medical bills and credit-card balances. Florida law prescribes a payment order under F.S. 733.605. Priority runs from estate administration costs to secured and unsecured claims.
3. Pay Debts and Administrative Expenses
Use estate funds to settle valid claims. The personal representative must follow statutory priorities and may need court approval for large or disputed claims. Keep detailed records of each payment.
4. Prepare the Final Accounting
After debts and fees, prepare a final accounting that documents all receipts, disbursements and the remaining balance. This record ensures transparency for beneficiaries and the probate court.
5. Distribute Remaining Assets
Under F.S. 733.608, distribute the net estate according to the will or, if there is no will, under Florida’s intestacy rules at F.S. 732.101. The assets that remain after debts and fees constitute the final distributable estate.
Helpful Hints
- Maintain a detailed asset ledger with values and descriptions.
- Engage qualified appraisers for real estate and high-value items.
- Use a spreadsheet to track debts by statutory priority.
- Consider consulting a probate attorney or CPA for complex estates.
- File final tax returns promptly to avoid penalties.