Creditor claims and disputes are almost always a common part in the probate process of a decedent’s estate. One of the most common questions we get regarding these claims is “what can the creditors go after?” Luckily, not all assets listed on a probate inventory are subject to creditor claims.
Essentially there are two classes of property that are exempt from creditor claims: certain tangible personal property and protected homestead real estate. Tangible personal property contained in the probate estate that is deemed to be exempt is listed in Section 732.402 of the Florida Probate Code. The statute says that the surviving spouse (or the decedent’s children if there is no surviving spouse) has the right to designate the following items as Exempt Property:
- Household furniture, furnishings, and appliances in the decedent’s home up to a net value of $20,000.
- Two motor vehicles titled in the decedent’s name and regularly used by the decedent and immediate family.
- Qualified tuition programs, including 529 Plans and the Florida Prepaid College Trust Fund.
- And teacher and school administrator death benefits.
While these assets help to provide shelter from greedy creditors, any Palm Beach probate litigation attorney will tell you that the exemption is not automatically applied. A person seeking to determine the property as exempt must file a Petition to Determine Tangible Personal Property. It is extremely important that this petition be complete and filed on time. The failure to do so will usually be deemed a waiver to determine the property as exempt, thus leaving it available for creditor claims.
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