15 Jan Duties of the Personal Representative
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These are the specific tasks that must be completed by the personal representative (with the help of their lawyer) during the estate administration:
Serve Notice of Administration
Florida Statute section 733.212 requires the personal representative to mail a “Notice of Administration,” on interested parties, including the decedent’s spouse, beneficiaries, and others who may be entitled to estate assets.
Take Inventory
The personal representative has the job of collecting and establishing the value of all estate assets as provided by Florida Statute section 733.604. A copy of the inventory must be sent to interested parties and, upon request, a beneficiary/heir must also be provided a written explanation of how the value was determined, including copies of any appraisals if applicable.
Open Safe Deposit Box (If Needed)
There are specific requirements to open and take inventory of contents in a safe deposit box containing the property of the decedent. Florida Statute section 733.6065 sets out the process for taking inventory of a safe deposit box. The safe-deposit box must be opened in the presence of two of the following: (1) an employee of the institution where the box is located, (2) the personal representative, or (3) the personal representative’s attorney of record. Each person who is present must verify the contents of the box under penalties of perjury by signing a copy of the inventory.
Secure Property of the Decedent
Florida Statute section 733.607 empowers the personal representative with control of the decedent’s property. The personal representative must act reasonably to protect and preserve assets for the benefit of interested parties during the estate administration. The personal representative will manage all estate property until creditors’ claims have been resolved and final distribution can be made.
Serve Notice to Creditors
As discussed in section 7, a personal representative must publish a notice to creditors under Florida Statute Section 733.2121, unless claims are barred (because a decedent died more than two years ago). The personal representative also must identify “reasonably ascertainable” creditors and provide the time frame for filing their claims for payment. If there are false debts alleged, the personal representative must challenge them by filing an objection.
Litigate on Behalf of the Estate
If the estate is being sued, or suing someone, the personal representative is responsible for managing that litigation. For instance, if someone needs to be sued for causing the decedent’s death, the personal representative must file a wrongful death action against the negligent party. Discussions about litigation involving the creation or administration of the estate and wrongful death litigation will be featured in future posts.
File Taxes When Required
If the estate produces income, or reaches the threshold to activate federal estate taxes the personal representative may have to file taxes on behalf of the estate. Florida does not have an estate tax or income tax, so the only taxes that can apply to a Florida estate are federal taxes. In 2022, the estate tax threshold for federal estate tax is 11 million and seven hundred thousand dollars ($11,700,000.00), meaning that if a decedent has less than 11 million and seven hundred thousand dollars in assets there will be no estate tax. Therefore the vast majority of estates are not taxed.
If an estate remains open for an extended time and produces income through rental properties or investments, it may be subject to income tax. The income threshold for income taxes is six hundred dollars per year.
Florida Statute section 733.817 contains specific details regarding the apportionment of estate taxes in Florida, for those rare instances when they must be paid. When taxes are required to be paid in an estate, it is wise to involve a CPA who has experience in estate taxes.
Distribute Estate Assets
Once the personal representative has used estate assets to pay valid debts and estate administration expenses (including lawyers, storage, mortgages, etc.), final distribution can be made to beneficiaries/heirs. Distributions will be made through the payment of money or the transfer of property. If a bank account was created for the estate, the personal representative will write checks out of that account. If a law firm is holding estate assets in trust, the personal representative will authorize those to bi distributed. For land and other property, the personal representative will sign documents to transfer interest to the appropriate people. The personal representative may also take a fee of 3% of the estate assets for services rendered to the estate.
Close the Estate
Now that the personal representative has properly accounted for estate assets, paid valid creditors, resolved pending litigation, and distributed estate property to the appropriate beneficiaries or heirs, the estate may be closed. Florida Statute section 733.901 governs the discharge of the personal representative.
If you have lost a loved one who either was a resident of, or owned property in the the State of Florida, and need assistance with Florida Probate, CLICK HERE, to schedule a consultation with a Florida Probate Attorney.
We serve clients throughout Florida, including, but not limited to, those in the following localities: Alachua County including Alachua, Archer, Gainesville, Hawthorne, High Springs, and Newberry; Bay County including Panama City
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