14
October 2018
Currents
By: Martin Zevin, P.A
Save Thousands by Avoiding Probate
and Guardianship
We don’t like to think about dying. My Dad used to
say: “May you live as long as you want and never want as
long as you live.” But we all have to go sometime. When
you die, do you want to leave your heirs with substantial
legal fees and Court costs and tie them up for nine months
to a year in Probate Court? Wouldn’t it be comforting to
know that your heirs will inherit your assets quickly and
with little expense?
Probate is a formal Court proceeding to distribute
assets when a person dies. Probate can occur with or
without a Last Will and Testament.
Probate is necessary in Florida when a person dies
owning any type of property (real estate, stocks, bank
accounts, etc.) in his or her name alone without any
named beneficiaries. Probate in Florida takes about a
year. Florida law entitles an attorney to charge 3% of the
gross value of the assets that are being probated. A
lawyer can also charge an hourly rate; however, it is
preferable to agree to a specific percentage, which may
be negotiated below the 3%. Otherwise, there is an unlim-
ited ceiling for an hourly rate. The Personal Representa-
tive (Executor) is entitled to a similar fee.
To avoid probate, I always suggest to clients that every
bank account, brokerage account, annuity, life insurance,
etc. have one or more beneficiaries as “payable on death”
(often abbreviated p.o.d.). This is also called “in trust for”
(i.t.f.) or “transfer on death” (t.o.d.). However, there are
some banks which will allow the “payable on death” for
savings accounts and CD’s but not for checking
accounts. If that is the case with your bank, it will be very
important that you have at least one other person as a
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