Detailed Answer
The role of an executor in Florida is to collect the decedent’s assets, pay lawful claims, and distribute the remainder. Verifying available funds before settling creditor claims protects both the estate and the executor’s fiduciary duties under Florida law.
Florida Law on Executor Duties
- Taking Possession of Assets: Under Fla. Stat. §733.603, an executor must locate, secure, and take custody of estate assets.
- Fiduciary Duties: Section §733.607 outlines the duty to act in the best interests of beneficiaries and creditors.
Payment of Creditor Claims
Florida Statute §733.701 establishes the priority of claims. Administrative expenses, debts from the decedent’s last illness, funeral costs, and taxes rank before unsecured creditors. Section §733.612 governs the method and timing of payments once assets are liquidated or available.
Why Confirm Funds?
- Preserve the estate’s solvency
- Prevent personal liability for the executor
- Ensure equitable treatment of all creditors
- Maintain adequate reserves for administration costs
Steps to Verify Funds
- Obtain recent bank and investment statements
- Appraise real property and personal property
- Estimate taxes and administrative expenses
- Prepare a preliminary balance sheet
- Compare total liabilities to available assets
Hypothetical Example
Suppose an estate has a $20,000 bank account and a $100,000 home with no mortgage. A medical creditor files a $25,000 claim. Before paying, the executor confirms $20,000 cash is available, but after setting aside $5,000 for taxes and fees, only $15,000 remains. The executor must refuse or partially pay the claim, then petition the court for guidance on asset distribution or sale.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a qualified Florida probate attorney for advice on your specific situation.
Helpful Hints
- Keep detailed records of all asset valuations and transactions
- Review the Florida probate code regularly for updates
- Communicate transparently with beneficiaries and creditors
- Consider professional appraisals for significant assets
- Seek court approval before making major distributions when in doubt
- Hire a CPA to assist with estate tax liabilities