The Short Answer

In Florida probate, you should generally set up an estate bank account as soon as you are appointed and have authority to act (after Letters of Administration are issued) and you expect money to be received or paid out for the estate. Keeping estate funds separate is not optional—mixing (“commingling”) estate money with personal money can create fiduciary liability, disputes with heirs, and problems with required accountings.

What Florida Law Says

As the court-appointed administrator (personal representative), you are a fiduciary. That means you must collect, safeguard, and manage estate assets for the benefit of creditors and beneficiaries, and you must be able to clearly account for every dollar that comes in and goes out. In practice, that typically requires a dedicated estate account so estate receipts (like sale proceeds, refunds, or bank balances) and estate payments (like mortgage payoffs, maintenance, insurance, and valid creditor claims) can be tracked and documented.

The Statute

The primary law governing this issue is Fla. Stat. § 733.602.

This statute establishes that a personal representative is a fiduciary who must administer the estate expeditiously and in the best interests of interested persons (including creditors), using the authority granted by Florida’s Probate Code and the court.

Florida law also requires the personal representative to take possession or control of estate property (with limited exceptions, such as protected homestead) and to take reasonable steps to manage and preserve it during administration. See Fla. Stat. § 733.607.

Because your facts involve inventorying assets, paying expenses and claims, and potentially selling real estate before distributing to an out-of-state heir, clean financial separation is one of the most important ways to protect yourself and keep the probate administration on track.

If you want more background on the personal representative role, see: What are an executor’s responsibilities during probate in Florida?

Why You Should Speak with an Attorney

While the statutes provide the general rule, applying them to your situation is rarely simple—especially when there is real estate to sell, creditor issues, and an heir in another jurisdiction. Legal outcomes often depend on:

• Strict Deadlines: Florida probate has timing rules that affect when distributions can be made and when creditor issues are resolved. For example, Florida law provides that a personal representative generally is not required to deliver distributive shares until 5 months after Letters are granted. See Fla. Stat. § 733.801.
• Burden of Proof: If anyone later questions your handling of money, you may need bank records and a clear paper trail showing that estate funds were used only for proper estate purposes (mortgage, insurance, maintenance, valid claims, and administration expenses).
• Exceptions and Asset Classification: Some assets may be outside probate (or treated differently), and Florida’s protected homestead rules can affect what the estate can sell, what proceeds can be used for, and what must pass directly to heirs. Missteps can trigger litigation or personal liability.

Commingling is one of the fastest ways to turn a routine administration into a contested probate. An attorney can help you set up a defensible process for receiving funds (including sale proceeds), paying expenses and claims, and documenting everything for the court and beneficiaries.

Related reading on creditor issues: How are creditor claims handled in a Florida estate?

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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.