The Two-Year Rule For Probate Claims
Probate is a legal process that creditors can use to obtain what you may still owe them. You can protect your assets and bypass probate, but only with the proper legal tools.
Going over the two-year rule for probate claims, and speaking with a Florida estate planning lawyer, will help you protect your estate.
What Is Probate?
Probate is a court-supervised process that involves gathering all of your assets. And, then, organizing all of those assets, while also paying off any debts you may still owe.
Right after those steps have completed, probate concludes with the distribution of your assets. Your assets will be distributed to the individuals named in your will.
Even though probate is useful, it can take a long time. Your beneficiaries may not be able to receive their inheritance for a year – or even longer. And, your estate may be drained, to pay for the costs associated with probate.
You can bypass probate with a trust. Doing so will let your beneficiaries receive their inheritance right after your passing. And, a trust will also protect your assets from creditors, as well as anyone else who wants what you owned.
What Is The Two-Year Rule?
The “two-year rule” is a rule that specifies the following: creditors have two years, from the date of your death, to file a claim against your estate.
Just as an example, if someone passes away on July 16th of 2026, their creditors have until July 16th of 2028 to file a claim against their estate.
In the event that two years pass and no creditor claim has been filed, creditors will be unable to get anything from the estate.
On the other hand, if a creditor does file a claim within that two year period, this claim must be assessed. And, if their claim is found to be valid, part of your estate will be liquidated to satisfy this claim.
The “two-year rule” is great for those who think you owe them something. But, it isn’t great for you or your beneficiaries. You can bypass this rule, though, with the proper trust.
What Should You Do?
You should develop a trust that protects your assets from creditors. By developing a trust of this sort, your assets will be unreachable to any creditors. And, all of your assets will go to your beneficiaries, right after your passing.
A good example of the above is as follows: if you put your cars and electronics in an irrevocable trust, no creditors can touch these assets.
On the other hand, if you put those assets in a will, then your creditors can file a claim against you. And, then, they can liquidate those assets, to pay off what they claim you owe them. Your beneficiaries may not receive any of it.
Speak With A Florida Estate Planning Lawyer Today
If you want to develop a trust that satisfies your needs, you should work with someone who can help. Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today and we will help you develop the estate plan you need.
Sources:
help.flcourts.gov/Other-Resources/Probate
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0505.html