At a person’s death, assets held in that person’s name may require a court proceeding to transfer those assets from the decedent’s name to the beneficiaries under their Last Will and Testament or to their heirs-at-law. This is the main purpose of the probate process. However, not all assets will require probate. Several types of assets are exempt from probate in Florida:
1. Jointly owned property with survivorship rights, including:
- Joint Tenancy with Right of Survivorship (JTWROS) for bank accounts, brokerage accounts, and real estate. Under this kind of title, upon the death of one owner, the title passes automatically to the surviving owner.
- Tenancy by the Entirety (TBE) for married couples, offering additional creditor protection. This kind of title treats the assets held by a married couple as an asset of the marriage, not of each individual spouse.
This arrangement can provide continuity and financial security for your heirs and is particularly important for married couples who want to ensure uninterrupted access to jointly-owned assets.
2. Assets with designated beneficiaries, such as:
- Life insurance policies
- Retirement accounts
- Payable-on-death (POD) and transfer-on-death (TOD) accounts
You decide exactly who receives these assets and in what proportions. Without designated beneficiaries, a court, the laws of Florida, or your last will and testament might determine how those assets are distributed, which may not align with your wishes.
3. College tuition savings in qualifying accounts, including Florida 529 Savings Plan and Florida Prepaid College Plan
4. Household furnishings and appliances in the decedent’s home up to a value of $20,000 as of the time of death
5. Two motor vehicles regularly used by the deceased person or family members, weighing less than 15,000 pounds each
6. Assets held in trust
7. Certain educator death benefits
It’s important to note that while these assets are generally exempt from probate, there may be specific circumstances or exceptions that apply. Consulting with a qualified probate attorney is advisable for personalized guidance on estate planning and probate matters in Florida.
