One of the most common questions people have about probate is: "How much does it cost?" If you're dealing with the loss of a loved one or planning your estate, understanding the costs associated with probate is crucial. Here, we'll break down the typical expenses you might encounter during probate in California, so you can plan ahead or prepare for what's to come.
Filing Fees
The first expense you'll encounter is the probate filing fee, which varies by county but is generally around $435 to $550 in California. This fee is paid to the court to open the probate case. If you're filing additional motions or petitions during the process, expect more fees to pile on.
Executor's Fees
The executor, or personal representative, is entitled to a fee for their work overseeing the probate process. California law sets these fees as a percentage of the estate's gross value:
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4% of the first $100,000
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3% of the next $100,000
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2% of the next $800,000
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1% of anything over $1 million
For example, if the estate is worth $500,000, the executor's fee would be $13,000. Executors can choose to waive their fee, often done if the executor is a family member and doesn't want to take payment.
Attorney's Fees
Attorney's fees in probate are also determined by California law and follow the same percentage breakdown as executor's fees. So, for a $500,000 estate, the attorney's fee would also be $13,000. If the case is complex or requires additional work, attorneys may request “extraordinary fees” that are approved by the court.
Appraisal Fees
Before assets can be distributed, the estate's value must be assessed. This is done by a court-appointed referee who charges a fee based on the estate's gross value. The typical cost is 0.1% of the estate's value, so for a $500,000 estate, you're looking at around $500.
Additional Costs
Other costs associated with probate may include:
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Bond Premiums: Executors may need to purchase a probate bond to protect the estate, with costs based on the estate's value (usually $1,000 to $2,000 for most estates).
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Publication Fees: Probate law requires notice of the proceedings to be published in a local newspaper, costing $200 to $500.
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Miscellaneous Costs: Certified copies of documents, mailing fees, and storage fees for assets like real estate can add a few hundred dollars.
How to Reduce Probate Costs
Planning ahead can significantly reduce the costs of probate. Setting up a living trust ensures your assets bypass probate entirely, saving both time and money. Additionally, properly naming beneficiaries on accounts and utilizing tools like Transfer on Death Deeds can streamline the process and avoid court involvement.
Often, when people come to my office to set up a Trust, they ask me what would happen if they forget to title their house, car, or bank account in the name of their Trust. This often happens when people are in a rush to get their Trust done. While I usually recommend that at the very least, real property is titled in the Trust's name, there are times when this isn't practical. For example, if someone is heading into surgery and wants to ensure something is in place "just in case," we'll prepare a Schedule of Trust Assets and a Pour-Over Will to address these gaps. These tools can help avoid or simplify probate through mechanisms like the Heggstad Petition.
The bottom line: Probate costs can add up quickly, but with proper planning, you can minimize or avoid them altogether. If you're not sure where to start, consider consulting with an estate planning attorney to discuss your options.
LEGAL DISCLAIMER
This article is intended for general information purposes only. Any legal analysis or other content should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information. If you require legal or professional advice, please contact an attorney or another suitable professional advisor. The choice of an attorney or other professional is an important decision and should not be based solely upon advertisements or blog postings.
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