Over the weekend, I read an article by Ilyce Glink in the Tampa Tribune regarding who is responsible for a decedent’s debt. I’d encourage you to look at the article, as it provides a general overview of this topic.
Of course, this overview must be simplified and is not exactly complete under Florida law. Undoubtedly, this article is sent to a number of newspapers for publication, and so it needs to be rather generic.
Here’s my take on it under Florida law:
Generally, the only assets subject to claims made against a decedent are those subject to probate administration. Probate assets are generally those individually owned assets for which there is no beneficiary designation (or the designation is the estate). This would mean that life insurance proceeds, retirement accounts, jointly owned assets and bank accounts with beneficiaries would not be subjected to these kinds of claims. Of course, if another person agreed to pay a claim (for example, by signing up for a joint credit card), then that person remains responsible for repayment after another’s death.
Where the article “misses” on the claims concept is its brief discussion regarding revocable trusts. Under Florida law, assets held in a revocable trust can be used to satisfy legally enforceable debts of a decedent. In other words, establishing a revocable trust will not provide creditor protection or debt relief in this state.
In addition, your Homestead is not subjected to creditor claims, other than those for which a valid lien has been placed against your house, such as a mortgage or back taxes.
I hope this helps clarify matters!
