In a Florida Estate, What Assets are Exempt from Creditor Claims?
What is a creditor? What can a creditor go after? What should probate litigators West Palm Beach and estate attorneys Miami know about creditors? How are creditors relevant to the probate process in Florida? Are all assets listed on a Palm Beach probate inventory subject to creditor claims? What Florida estate assets are PROTECTED from creditors?
Are the assets in your Florida estate protected?
- Certain assets in your Jupiter estate may be protected from creditors.
- What is a creditor?
- Probate litigators Delray Beach know that creditors are people that a decedent owed money to prior to death.
- However, certain tangible personal property and protected homestead real estate are exempt from creditor claims during the probate process in Florida.
- Specifically, what tangible personal property is protected?
- 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.
- Your Palm Beach estate lawyer should warn you that the exemption is not automatically applied.
- Instead, a Petition to Determine Tangible Personal Property must be filed to request something be exempt.
- If this petition is not filed on time, the property may become subject to creditors.
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.
- Teacher and school administrator death benefits.