How Much Does it Cost to Probate a Will?

By Lisa Magloff

Probate is the court supervised legal process that includes determining the validity of the will and transferring the legal title of property from the deceased to the deceased's heirs or beneficiaries. It also includes paying any debts owed and paying federal estate and income taxes. In most cases, the entire process is administered by an executor. In large estates, probate can be very complex and costly.

Probate is the court supervised legal process that includes determining the validity of the will and transferring the legal title of property from the deceased to the deceased's heirs or beneficiaries. It also includes paying any debts owed and paying federal estate and income taxes. In most cases, the entire process is administered by an executor. In large estates, probate can be very complex and costly.

Small Estates

In most states, an estate does not have to go through the probate process if it is worth less than a particular amount. For example, California estates worth less than $100,000 do not need to go through probate, while in Wisconsin the threshold is $50,000. In addition, most states offer a shortened and simplified probate process for small estates. Each state has an amount for what qualifies as a small estate. If the estate does qualify for small estate probate, the probate courts will not require you to have a legal representative. This can save a great deal of money in legal fees.

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Legal Costs

Each state has different probate laws, so the costs can vary a great deal. For most estates, both an executor and a lawyer will be required for the probate process. Some states set a limit on the amount of fees that lawyers and executors can charge for probate services. For example, in California, attorneys and executors can each take a maximum of 4 percent of the first $100,000 of the gross value of the estate, then 3 percent of the next $100,000, then 2 percent of the next $800,000, then 1 percent of anything over that amount. In some other states, the courts may set fees they feel are fair. According to finance expert Liz Weston of MSN Money, this is generally around 3 percent of the estate.

Additional Costs

In addition to the fees paid to the lawyer and the executor, there may also be appraisal fees, court filing fees, bond fees, legal fees and accountant fees. Federal and state estate taxes will also need to be paid on larger estates. The additional costs can vary greatly from one state to the next, depending on individual state requirements. According to attorney Ken LaMance of LegalMatch, the typical probate process costs anywhere from 5 to 10 percent of an estate, but can go as high as 15 percent. Some states also set limits on fees that can be charged. For example, California appraisal fees are limited to 0.1 percent of the value of the assets, while probate court fees were set at $320 as of 2009. LaMance points out that court fees in other states can be as high as $3,000.

Avoiding Costs

These are several ways that you can avoid paying high probate costs. One of these is through setting up a living trust. In a living trust, you transfer the majority of your estate to a trust while you are still alive. The trust then becomes the owner of your property, so probate is not required. You also designate a successor trustee, who would control the trust on your death. The successor trustee can then distribute the assets of the trust to the beneficiaries you have specified in the trust document. Property owned jointly with rights of survivorship also passes automatically to the survivors and does not go through probate. Life insurance, pension plans and retirement accounts are paid directly to the named beneficiary, so these funds also do not need to go through probate.

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What Does Probate for a Will Mean?

References

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Who Pays the Cost for the Attorney Fees & the Executor of Probate?

By creating a will and naming an executor, you set forth instructions for the transfer of assets from your estate to your heirs after your death. A will must go through probate, meaning a civil court approves the document and holds authority over the actions of the executor. By state laws, executors and attorneys involved in the probate process are entitled to reasonable compensation for their work. The fees are paid out of the estate's assets.

What Monetary Percentage Does an Executor of a Will Get?

Many states allow the executor of an estate to receive compensation for his work on the estate. The monetary percentage the executor of a will receives in these states depends on the law of each particular state. Some states use a percentage amount set by law, while others allow the probate court to set the rate.

How Are the Estate Settlement Costs Determined?

No matter how straightforward an estate seems, family members will likely have to go through a probate process in state court before the estate’s assets can be distributed to heirs and beneficiaries. If the costs involved in probating your estate outweigh its assets, your estate may be declared insolvent and your beneficiaries may inherit nothing. State laws determine the precise probate process for estates within their borders and settlement costs may vary among states.

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