What Happens to Your Assets in Florida Without a Beneficiary?
As an estate planning attorney, I get asked this question a lot. Clients sit across from me, looking a little nervous, and ask what actually happens if they never get around to making a formal plan. It is a fair question. We all want to know that the things we worked hard for will go to the people we care about.
When you do not name beneficiaries or write a will, your assets do not just disappear. They also do not automatically go to the person you might expect. Instead, they fall under a default system set up by the state of Florida.
The State’s Estate Plan for You
If you do not have your own plan, Florida has its own plan for everyone. This is called "intestate succession." That is just a legal way of saying the courts decide who gets what based on a strict set of rules.
The court does not look at who you were close to or who promised to take care of the house. They look at a family tree.
How Assets Would Be Distributed If You Are Married
Many people assume their spouse automatically gets everything. That is true in some cases, but not all.
If you are married and all your children are with your current spouse, your spouse typically inherits 100% of your assets. The state assumes you would want them to decide how to distribute the money and property.
It gets a little more complicated if you have a blended family. Let’s say you are married, but you have children from a previous relationship. In that scenario, your spouse does not get everything. Florida law usually gives your spouse 50% of the estate. The other 50% gets divided among your children.
This often surprises people. And sadly, I have seen situations where a surviving spouse had to sell the family home because they could not afford to buy out the children’s half.
If You Are Single
If you are not married, the court looks for the next closest relative.
Children: If you have children, they inherit everything. It is split equally among them.
Parents: If you have no spouse and no children, your assets go to your parents if they are still living.
Siblings: If your parents have passed away, your brothers and sisters are next in line.
If the court cannot find any immediate family, they keep looking for more distant relatives like nieces or nephews. In very rare cases where absolutely no family can be found, the assets eventually go to the state.
The Probate Process
Without named beneficiaries, your assets become part of your "probate estate." This means a judge has to oversee the distribution of every single dollar and item.
The court will appoint someone to manage this job. In Florida, we call this person a "Personal Representative." You might know this role as an executor.
If you did not name someone yourself, the court chooses for you. It is usually a spouse or a close family member, but it might not be the person you would have picked. This person has to pay your debts, file taxes, and distribute what is left according to the strict state rules I mentioned earlier.
Assets That Skip the Court
Not everything has to go through this long court process. Some assets can bypass the system entirely if you set them up correctly.
Retirement Accounts and Life Insurance
These usually ask you to name a beneficiary when you open them. If you filled out that form, that money goes directly to that person. The court does not get involved.
Joint Accounts
If you own a bank account or a home jointly with someone else, and it is titled with "rights of survivorship," that person automatically owns it when you pass away.
Payable-on-Death Accounts
You can tell your bank to transfer your checking or savings account to a specific person immediately upon your death.
Note: These designations override a will in many cases. Therefore, it is important to keep them updated. There have been instances where ex-spouses receive life insurance payouts simply because the paperwork was never changed after the divorce. This is why it’s good to review periodically with professionals, including your estate attorney and financial planner.
Florida Probate May Take Time
Relying on the state’s default plan is stressful for the people left behind. Probate can take a long time in Florida. Your family might wait months or even a year to access the funds they need for bills or funeral costs.
It also removes your voice from the conversation. You might have a responsible child who should manage the money, and another child who struggles with spending. The state treats them exactly the same. You may have a partner with whom you are not legally married, but would wish to make a beneficiary. The state will not recognize them at all.
Moving Forward with Care and Planning
You do not need a complicated, expensive strategy to fix this. You just need to make sure your wishes are written down legally.
If you are worried about how your assets would be handled right now, please reach out to me, Elaine McGinnis P.A. We can sit down, look at what you own, and make sure it goes exactly where you want it to go.