Does life insurance go through probate in Florida? The answer is no, but there are definitely different paths.
Providing life insurance can be an important economic provision for families who are already facing a troublesome situation. Nominated members of the insurer’s policy usually get benefits from life insurance. So, properties are generally not calculated as probate assets in Florida.
Probate is a legal procedure by which the court records a deceased person’s last will and testament. The court will then administer the provisions of that. Probate is primarily modified to pay off the decedent’s lenders and consign the property to those named in his will. Properties transferred to nominees by agreement do not require probate and are relieved from the decedent’s lenders.
Today’s article is for those who want to know more about probate and its principles in Florida. Let us start the topic, and I’ll try to give you some important information.
What is Probate in Florida?
Probate is a mechanism to ensure that properties owned by an insured do not directly dispose to someone else upon his death.
According to the last will of the deceased, his property is distributed among the designated beneficiaries or heirs. But if he dies before making his will without specifying who will inherit his property, it will be included in the probate estate. A life insured’s property is not considered a Florida estate property.
Florida law provides for two types of probate administration, namely formal administration and summary administration.
In probate administration, only probate assets will be considered. A decedent’s probate estate refers to property owned by a decedent with no provision as to who will own the property after his death. Probate is the legal means of conveying the probate property of a deceased person to his eligible heirs.
Probate, therefore, plays an important role in ensuring the proper distribution of the financial matters and assets of the deceased. You’ll know from this article how life insurance goes through probate in Florida.
Are Life Insurance Proceeds Probate Estate Assets?
The money you pay into a life insurance policy provides security for your family in the future. In reality, it is not your money but belongs to the insurance company. Through the process of life insurance, the assets of the insured are usually transferred to the named person.
After your death, your insurance company is legally bound to pay out to your nominee. But in this case, the policyholder must select a beneficiary so that the life insurance fund can be easily transferred to them after his or her death.
Probate assets to become a part of the probate estate require a probate proceeding to be initiated with the court. As an insured must select a beneficiary or heir, his or her life insurance policy will never be included in the probate estate.
A problem will arise if the heir dies before the death of the insured person. Then, under Florida law, that account would be treated like any other bank account and would belong to the estate.
What assets will not go through the probate estate?
Your life insurance funds never go into probate. But if the heir to the policy is his wife, then there may be problems if they ever divorce. Most of the time, the insurer forgets to change the name of the nominee, which may lead to trouble later on. However, under the new law in Florida, an ex-wife’s title is no longer effective after a divorce. However, in this case, you should make a decision with a lot of thought.
Assets excluded from probate in Florida include household furniture in the decedent’s main residence that must be valued at up to $20,000. Of course, if the decedent owned a used motor vehicle weighing under 15,000 pounds, that would not be a probate estate.
If the property owned by the decedent passes to a designated beneficiary, his or her assets will be exempt from probate. This policy also applies to any bank account. However, if the deceased were married, his estate would legally pass to her unless the person named another beneficiary.
In this case, his property will not be included in the probate. Also, assets that will not be included in the probate estate are joint tenancy property, a retirement account, a life insurance fund, a home owned by a couple, a share account, etc. To know more, you may check this website,
What assets must be included in the probate estate?
Above, we have come to know what probate is. If a decedent does not elect a beneficiary, his or her estate will be included in the probate estate.
For example, if a deceased person’s bank account is not automatically transferred to someone after his death, it is covered by probate. However, if the deceased is unable to select a beneficiary for any reason in the probate. Or real estate solely owned by the decedent and a probate estate.
You can talk to a probate attorney or lawyer to find out more about this. In this case, you can visit https://www.ricelawflorida.com on this website.
Or you can visit this site to learn how to avoid probate https://www.dhclaw.com.
I hope now you know the answer to the question: Doeslife insurance go through probate in Florida or not?
Thus, does life insurance go through probate in Florida? Hope my today’s article has covered the above topic. Florida has many laws related to probate. You can learn more about Florida probate with the help of a court, lawyer, or agent.
Your property will be included in the probate if it falls within the probate estate. Life insurance, which provides financial protection to an individual’s family upon his or her death, may also be included in probate if it falls within the probate laws.
But usually, a person buys a policy by selecting a beneficiary. So, if you follow the right rules, your life insurance will definitely not go through probate. Hope you understand about Florida probate.