Dealing with a legal process is the last thing you want to do after the death of a loved one. But after a loved one passes away, there are legal steps that must be taken to make sure their estate and financial affairs are properly handled.
Your loved one’s estate will likely need to go through probate. This is true whether they died with a will or not.
The probate process can be long and complex, which naturally makes you want to avoid it. But not filing probate in Florida can have many negative consequences.
Liability for the personal representative
The estate will have a personal representative, who can be named in a will or appointed by the court. The personal representative could be held liable for their failure to file probate.
If you are the personal representative and do not follow through with your responsibilities, this could mean financial harm to the beneficiaries. You may be held liable for this financial harm.
Creditor and tax claims
An estate that is not submitted to probate also gives creditors the ability to seize assets. Part of probating an estate involves giving notice to creditors and handling any claims. When an estate does not go through probate, it is open for creditors to collect from.
Not probating an estate can result in owed tax debt. Another part of the probate process involves determining if any state or federal taxes are owed.
If so, and they are not paid, penalties and interest will be assessed. This could require estate assets being used to satisfy the tax debt, leaving less assets available for beneficiaries.
Potential family disputes
Finally, one of the most obvious problems with not probating an estate is that assets will not be transferred to their intended beneficiaries.
A will designates how assets should be distributed. When there is not a will, assets are distributed according to probate laws. An estate not probated increases the chance that heirs will start fighting over assets.
Although probate does involve duties that might be difficult to perform while you are grieving, the process helps avoid bigger problems in the future.