When a person dies, one of the first steps is determining whether their estate must go through the Florida probate system. Even if the deceased had a will, assets solely in their name typically require probate. 

Everyone has bills, and they don’t stop just because someone dies. Can you use the deceased person’s bank accounts for unpaid bills? If the account has excess funds, what happens to them without a designated beneficiary? Understanding how Florida probate impacts financial obligations and bank accounts is crucial for effective estate administration.

Let’s look at Florida probate law and the handling of bank accounts following a death.

Administration of Bank Accounts

Whether a bank account goes through Florida probate depends on how it was titled at the time of death. Accounts held solely by the deceased, those listing the estate as a beneficiary, or those without designated beneficiaries must undergo probate.

If the deceased had a will, their account will go through either formal administration or summary administration, depending on the estate’s value. Formal probate applies to estates over $75,000 or when the death occurred within the last two years, making it a more complex process best handled by a Florida probate attorney.

Summary administration, as outlined in Florida Statute § 735.201, applies to estates valued under $75,000 or if the deceased has been dead for over two years. This process allows for a quicker resolution of the estate.

If there is no will, the account is subject to Florida’s intestacy laws. The Florida probate court will determine how to distribute the funds based on Florida Statute § 732.101 et al., leaving heirs without control over fund distribution.

Probate Court vs. Beneficiary Designation

Naming beneficiaries on financial accounts is an effective way to avoid Florida probate and ensure assets are distributed according to the owner’s wishes. If an account has a beneficiary designation, it bypasses probate and does not require:

• Appointment of a Personal Representative
• Court authorization
• Probate proceedings
• Determination of will validity

Accounts that allow beneficiaries to avoid Florida probate include:

• Joint bank accounts with survivorship rights
• Certificates of Deposit (CDs)
• Life insurance and brokerage accounts
• Payable-on-Death (POD) accounts
• Transfer-on-Death (TOD) accounts
• Retirement accounts (401(k)s, IRAs)

By ensuring proper beneficiary designations, account holders can avoid Florida probate, ensuring funds are immediately available to their loved ones.

Update Your Beneficiaries

Beneficiary designations override wills when it comes to financial accounts. Many people assume a will controls all distributions, but financial institutions are legally bound to follow the listed beneficiaries.

For example, if an ex-spouse remains listed as a beneficiary after a divorce, they will still inherit the account despite a will stating otherwise. Regularly updating financial account beneficiaries helps avoid unnecessary Florida probate complications.

Bank Accounts Avoiding Probate

It is crucial to properly manage all financial accounts—including certificates of deposit, checking accounts, money market accounts, and savings accounts—to ensure they bypass Florida probate. Establishing survivorship accounts allows another person to make deposits and withdrawals during your lifetime and automatically access all funds after your passing.

If you prefer to restrict access during your lifetime but want the funds to transfer without probate upon death, designating beneficiaries is essential. In Florida, four types of bank accounts can avoid probate:

• Payable-on-Death (POD) Accounts – Funds are transferred directly to designated beneficiaries upon the account holder’s passing.
• Shared Bank Accounts – Married couples holding joint assets benefit from automatic survivorship rights.
• Joint Accounts – Unmarried individuals can establish joint accounts with survivorship rights.
• Trust Accounts – Naming a trust as the beneficiary allows all assets to pour into your trust upon death, bypassing a pitfall of estate planning. 

By proactively structuring financial accounts, individuals can prevent unnecessary delays and legal complications, ensuring a seamless transfer of assets outside the Florida probate process.

Legal Account Management

Understanding Florida probate law is crucial when managing a deceased person’s bank account. Before using funds from a deceased person’s account, you must obtain a Letter of Administration, which authorizes an executor to handle estate finances.

• Executors may transfer funds into an estate account but cannot use the money for personal reasons.
• Banks freeze accounts upon notification of the account holder’s death.
• Joint account holders maintain full access to funds.
• Beneficiaries must provide a death certificate and identification to withdraw funds.

Avoiding Florida Probate

To avoid Florida probate, ensure all financial accounts designate a beneficiary. Review all accounts and your will and trust yearly to ensure current information.

Following a loved one’s death, you will likely need a Florida probate attorney to help resolve the estate. The attorneys at Boyer Law Firm have probate experience in formal, summary, and ancillary administration. We can assist surviving spouses, children, beneficiaries, and personal representatives navigate probate.

We have three Florida locations to serve you: Jacksonville +1  (904) 236-5317 , Orlando +1 (407) 574-2573, and Miami +1 (305) 921-9665. Call us to schedule a consultation with one of our attorneys.