The Short Answer

In Florida, “paid-off” assets (like a car with no loan or a bank account with no lien) generally become part of the probate estate if they were owned in the decedent’s name alone and do not have a beneficiary designation. Small debts are still real debts—Florida law requires they be paid (if there are probate assets available) in a specific priority order before heirs receive distributions.

What Florida Law Says

When someone dies without a will (intestate), the estate’s assets are gathered, valid creditor claims are addressed, and then whatever remains is distributed to heirs under Florida’s intestacy rules. Importantly, debts do not disappear just because they are “small,” and heirs do not automatically get to keep assets if creditor claims and administration expenses must be paid first.

The Statute

The primary law governing how estate debts get paid is Fla. Stat. § 733.707.

This statute establishes a mandatory order of payment (priority classes) for administration costs, funeral expenses (up to statutory limits), certain taxes and preferred claims, last-illness medical bills, and then “all other claims,” with lower-priority creditors paid only after higher-priority items are satisfied.

For very small intestate estates, Florida may allow certain personal property to be transferred with minimal or no administration if the estate meets strict limits and creditor-related conditions. One key small-estate option is Fla. Stat. § 735.304, which can apply when the decedent died intestate and the estate falls within the statute’s value and timing requirements.

Why You Should Speak with an Attorney

Even when the assets are “paid off” and the debts seem minor, applying Florida probate rules can get complicated quickly—especially if family members start paying bills or taking property before the estate’s creditor issues are properly addressed. Legal outcomes often depend on:

• Strict Deadlines: Small-estate shortcuts (and creditor-bar rules) can turn on timing from the date of death and whether proper notice is given; missing a timing requirement can force a more expensive probate path or create personal liability risks.
• Burden of Proof: You may need to prove what is a probate asset versus a non-probate transfer (beneficiary designations, joint ownership, payable-on-death accounts), and whether a claimed debt is valid and properly documented.
• Exceptions & Protected Property: Some property may be exempt or otherwise protected, while secured debts (like a lien) can follow the asset even if other unsecured debts are small. Also, using small-estate procedures can create exposure if creditors were not properly addressed.

If you want a deeper overview of intestate estates, see What Happens If My Parents Died Without a Will in Florida?. For creditor timing issues, see What Is the Creditor Claim Deadline in Florida Probate, and What Happens After It Expires?.

Get Connected with a Florida Attorney

Do not leave your legal outcome to chance. We can connect you with a pre-screened Probate attorney in Florida to discuss your specific facts and options.

Find a Florida Attorney Now

Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.