How Are Creditor Claims Handled During Summary Administration?

Summary administration is an expedited type of probate in Florida. Only certain estates are eligible for summary administration and due to the faster nature of the process, it does not involve all of the same steps as formal administration. For example, the probate court will not appoint a personal representative during summary administration. Creditor claims may also be handled differently during summary administration, depending on the facts of a specific case. Below, our Daytona Beach summary estate administration lawyer explains more about creditor claims during the process.

What is Summary Administration in Florida?

Again, summary administration in Florida is a simplified probate process. To be eligible for summary administration, an estate must meet certain conditions. These are as follows:

The value of the estate is less than $75,000, excluding homestead property, or
The decedent passed away over two years before the process began.

While summary administration is simpler than formal probate, creditors still have certain rights and responsibilities if they want to file a claim against an estate.

The Two-Year Rule in Florida

Under Florida law, creditors have just two years from the date of a borrower’s death to file a claim against their estate. If the decedent passed away more than two years ago, any creditor claim is considered resolved because the time limit has passed. Creditors are typically barred from filing a claim against an estate after the two year window has expired. In these cases, the property in an estate can be distributed without providing notice to creditors.

If the decedent passed away less than two years ago, a Notice to Creditors must be published in a local newspaper. Typically, creditors have 90 days from the date of the publication to file a claim against the estate. Petitioners in summary administration must also make a reasonable effort to identify and locate all creditors. When creditors are notified directly of a death, they typically have 30 days to file a claim against the estate during summary administration.

It is important to note that there are certain exceptions to the two-year rule in Florida. For example, if state or federal taxes are owed, the estate may still be responsible for them even if two years have passed since the death.

What Happens if an Estate Does Not Have Sufficient Funds to Pay a Creditor?

In the event that an estate does not have sufficient assets to pay all creditors, the petitioner will have to prioritize creditors. For example, secured creditors owed a debt that has collateral attached to it are generally prioritized over unsecured creditors. If there are not sufficient funds to pay all creditors, some may not be paid at all from the estate. In this situation, creditors may have other options than probate to pursue the debt, although those options may be limited.

Our Summary Estate Administration Lawyer in Daytona Beach Can Guide You Through the Process

Summary administration is a simplified type of probate but that does not mean you should go through it alone. At Bundza & Rodriguez, our Daytona Beach summary estate administration lawyer can help you through the process, answer your questions, and provide sound legal advice so it is as easy as possible for you. Call us today at 386-252-5170 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0733/Sections/0733.710.html