Doing nothing after a loved one passes leads to five significant hidden costs: the devaluation or loss of assets, increased legal and administrative fees, damaging family conflicts, the forfeiture of time-sensitive benefits, and exposure of the estate to creditors.
While grieving is a personal and necessary process, the financial and legal worlds do not pause. Deadlines for filing taxes, claiming benefits, and securing property begin almost immediately.
These challenges are not insurmountable. The process, known as estate administration or probate, offers a clear path forward.
If you have a question about settling a loved one's affairs in Florida, call us. Our practice focuses on guiding families through this process. Contact Lulich & Attorneys at (772) 589-5500.
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Cost #1: How Your Loved One's Assets Lose Value or Disappear
Assets are not frozen in time when someone passes away. Without a designated person—an executor or personal representative—to manage them, their value quickly declines.
How Inaction Erodes an Inheritance
- Real Estate Neglect: An unoccupied home falls into disrepair. A leaky roof, overgrown lawn, or missed utility payments lead to thousands in damages, code violations, and a lower sale price.
- Market Volatility: Investment accounts, like stocks and bonds, require active management. If the market dips, no one is authorized to sell or reallocate funds, causing significant financial losses.
- Unclaimed Property: Bank accounts, life insurance policies, and safe deposit boxes are eventually turned over to the state as unclaimed property if no one comes forward. In Florida, this process is governed by the Florida Unclaimed Property Act. Recovering these assets later is a complicated and lengthy ordeal.
- Digital Assets: Access to online financial accounts, cryptocurrency, and even sentimental digital photos is permanently lost. Many platforms have strict policies and require legal authority to grant access to a deceased person’s account.
Securing the Estate
The first step is initiating probate, the legal process of settling an estate.
This allows the court to formally appoint a Personal Representative (the term for an executor in Florida).
Once appointed, this person has the legal authority to:
- Access and manage bank and investment accounts.
- Pay the mortgage and maintain real estate.
- Collect and secure all known assets.
We handle the legal filings required to get a Personal Representative appointed swiftly, to secure your loved one's property before its value diminishes.
Cost #2: How Do Delays Increase Legal and Administrative Fees?
The belief that waiting saves money is a common misconception. In reality, delays almost always make the process of settling an estate more expensive. One of the biggest hidden costs of doing nothing after a loved one passes is watching administrative expenses mount.
The Compounding Price of Waiting
- Increased Professional Fees: A straightforward estate becomes complex when records are lost, assets are hard to locate, or deadlines are missed. This translates directly into more hours for attorneys, accountants, and appraisers, with probate costs potentially consuming 3%–7% of an estate’s total value.
- Tax Penalties: Estates may be required to file final income taxes for the deceased and, for larger estates, federal estate taxes. Missing these deadlines results in penalties and interest charges from the IRS.
- Creditor Complications: When an estate isn't opened, it's difficult to formally notify creditors and manage final bills. Some creditors may try to file claims against family members directly or charge excessive late fees and interest, creating a legal mess that costs more to untangle later.
- The Cost of Dying Intestate: If your loved one died without a will (known as dying intestate), Florida law dictates who inherits the property. This process is typically longer and more costly than when a will is present, as the court must formally identify and locate all legal heirs according to the Florida Probate Code.
A Proactive and Orderly Approach
Starting the estate administration process promptly allows for an organized approach.
This involves:
- Creating an inventory of all assets and debts.
- Providing formal notice to all creditors to establish a firm deadline for claims.
- Filing all necessary tax returns on time to avoid penalties.
Our firm manages these administrative tasks efficiently to keep costs predictable and prevent unnecessary expenses from draining the estate’s value.
Cost #3: How Doing Nothing Leads to Family Disputes
In the absence of clear, legal direction, even the closest families find themselves in conflict. Delay and ambiguity are breeding grounds for suspicion and resentment.
How a Lack of Action Creates Division
- Information Vacuums: When no one is officially in charge, family members are left in the dark about the deceased's finances. This lack of transparency leads to assumptions and accusations. “Is someone hiding money?” “Did Dad really promise the house to my brother?”
- Unequal Burdens: Frequently, one family member steps up to pay for the funeral or maintain the house out of pocket. Without a formal process to reimburse them, they feel taken advantage of, leading to resentment.
- Disagreements Over Property: Sentimental items—jewelry, photos, furniture—become major points of contention. Without a will or a legal process to mediate, these disputes permanently damage relationships. In fact, 44% of Americans report family disagreements when a loved one dies without written instructions.
- Florida Law vs. Family Wishes: If there is no will, Florida's intestate succession laws determine who gets what. These rigid legal formulas may not align with your loved one’s wishes or what the family feels is fair, creating winners and losers by default.
Clarity and Fairness Through the Legal Process
The formal probate process provides a structured and transparent framework for distributing assets.
It ensures that:
- An official inventory is made public to all heirs. There are no secrets.
- All decisions are documented and approved by the court. This removes the burden from any single family member.
- Distribution follows the will or, if no will exists, state law. This provides a clear, legally binding resolution.
By following a defined legal path, you replace uncertainty with clarity, helping to preserve both family harmony and the estate itself.
Cost #4: What Benefits or Claims Do You Forfeit by Waiting?
Many sources of financial support available to survivors are time-sensitive. By not acting, you could be leaving money on the table that is rightfully yours.
Ticking Clocks on Financial Lifelines
- Social Security Survivors Benefits: Spouses, children, and even dependent parents may be eligible for survivors benefits. However, there are deadlines and specific application procedures to follow. Delaying could mean losing out on months of payments.
- Life Insurance Policies: While most policies don't have a strict deadline, a delay in filing a claim creates complications. The insurance company will not automatically pay out; you must file a claim with a death certificate. If the policy is old or the company has merged, tracking it down becomes harder over time.
- Pensions and Retirement Accounts: Many pensions offer survivor benefits, but they require the spouse or beneficiary to file a claim. Similarly, accessing a 401(k) or IRA requires a formal request from the legal beneficiary.
- Veterans Benefits: The Department of Veterans Affairs offers benefits to surviving spouses and children, including financial assistance for burial costs. These claims must be filed within a specific period after the veteran’s passing.
- Wrongful Death Claims: If your loved one's death was caused by someone else's negligence—such as in a car accident or medical error—your family may have the right to file a wrongful death lawsuit. In Florida, you generally have only two years to file this type of claim. Waiting too long means forfeiting your right to pursue compensation for your loss.
Taking Timely Action to Claim What's Yours
Part of the estate administration process is to identify all potential sources of income and benefits.
We help you understand which benefits you may be entitled to and ensure that all necessary claims are filed correctly and within their deadlines.
Cost #5: How Does Inaction Expose the Estate to Creditors and Scams?
An unsettled estate is a vulnerable one. Without a legally appointed representative, the estate’s assets are exposed to risks from legitimate creditors and predatory scammers. This is another of the hidden costs of doing nothing after a loved one passes.
The Dangers of an Unprotected Estate
- Unverified Creditor Claims: After a death, creditors will begin trying to collect on outstanding debts. Without a formal probate process, it’s difficult to verify which debts are legitimate and how much is truly owed. Some may try to collect more than they are due or pressure family members to pay from their own funds.
- Risk of Foreclosure and Repossession: If mortgage or car payments are missed, lenders begin foreclosure or repossession proceedings. An official Personal Representative negotiates with lenders and uses estate funds to keep these assets secure.
- Predatory Scams: Scammers actively monitor public death notices. They may contact grieving family members with fake claims of debt, demanding immediate payment for a non-existent bill. Grieving families are a common target for these heartless schemes.
- Medicaid Estate Recovery: In Florida, if the deceased received Medicaid benefits for long-term care, the state may have the right to recover those costs from the estate. Ignoring this leads to liens being placed on property, complicating its sale or transfer. This is a key reason why Medicaid asset protection planning has become so important.
Creating a Legal Shield
Initiating probate establishes a legal shield around the estate.
The Personal Representative becomes the single point of contact for all debts and claims.
Through this formal process, the Personal Representative:
- Legally notifies creditors, which limits the time they have to file a claim.
- Challenges and negotiates illegitimate or inflated debts.
- Pays all valid claims in an orderly fashion from the estate’s assets, not your own.
This protects the heirs and ensures that only legitimate debts are paid.
Frequently Asked Questions About Settling an Estate in Florida
How long does the probate process typically take in Florida?
A formal probate administration in Florida takes anywhere from six months to over a year, depending on the complexity of the estate. Delays are most common when there is no will or if family disputes arise.
What if an heir is a minor or has special needs?
If an heir is a minor (under 18) or an adult with disabilities:
- A guardian may be required to manage that heir’s inheritance until they reach adulthood or as long as needed.
- The court may require a restricted account or trust, preventing funds from being spent except for the heir’s benefit and only with court approval.
- For special needs heirs, a standard inheritance could disrupt their eligibility for government benefits. In these cases, the court or family may need to set up a “special needs trust” to protect the beneficiary.
- The Personal Representative has extra legal duties to safeguard the interests of minors and vulnerable heirs.
Failing to address these issues upfront leads to delays, additional court hearings, and possible financial harm to the heir. Talk to your probate attorney right away if you know a minor or disabled heir is involved.
What happens if the will cannot be found?
If the original will cannot be located, the court will likely treat the estate as if there was no will (intestate). A thorough search should be conducted in safe deposit boxes, personal files, and with their attorney's office.
Do I have to pay my loved one's debts from my own money?
No. In almost all cases, you are not personally responsible for the debts of a deceased family member. Debts are paid from the assets within the estate.
How do we pay for the funeral or urgent expenses if accounts are frozen?
In most cases, bank accounts held solely in the deceased’s name will be temporarily inaccessible until a Personal Representative is appointed by the court. However, you have options:
- Joint Accounts or Payable-on-Death (POD) Accounts: If a joint account holder or a POD beneficiary exists, they can usually access funds right away for immediate needs like the funeral.
- Funeral Home Arrangements: Many funeral homes in Florida are familiar with probate delays and will work with families by accepting delayed payment if they receive written confirmation from your probate attorney.
- Family Allowance: Florida law provides for a “family allowance” for a surviving spouse or minor children. The Personal Representative can ask the court for early disbursement of funds to cover urgent support needs.
- Out-of-Pocket Reimbursement: If a family member must front the cost, keep all receipts—these can typically be reimbursed from the estate once probate funds become available.
Avoid withdrawing from the deceased’s individual accounts or selling property before court approval. Always consult with your probate attorney before taking financial action.
Is probate always necessary in Florida?
Not always. Smaller estates may qualify for a simplified process called "summary administration." Additionally, assets held in a trust or with a direct beneficiary designation (like a life insurance policy) typically do not go through probate.
Protect Your Family's Future with Lulich & Attorneys
Taking the first step is the most important one. This ensures your loved one's legacy is handled with care and that your family's financial future is secure.
Let our firm handle the legal requirements so you are free to focus on what matters most.
For clear guidance on estate administration and probate, call Lulich & Attorneys today at (772) 589-5500.