The Greatest Gift You Can GIVE Your Loved Ones
Planning Today Can Protect Tomorrow
Understanding the Real Cost of Inaction
Your loved ones could be forced into a costly, time-consuming court process if you haven’t planned ahead. Here’s what probate really costs.
In certain circumstances, your estate could lose
4% to 7%+
of its total value to probate fees — before a single dollar reaches your family.
What You’re Actually Paying For
State laws determine court fees, which can vary from a few hundred dollars to more than a thousand. The size of the estate and the number of forms that need to be submitted determine them — complex estates will have more formalities.
The filing fee for opening probate is usually around a couple of hundred dollars. All estates in some states incur exact charges. In other states, estates pay more if they are worth more.
Decedents can specify in their wills just how much their nominated executor — also sometimes referred to as the personal representative — should be paid. State law will be in force if an estate plan needs to be clarified on this clause.
Certain states provide for paying a "reasonable fee" without citing an exact amount. When transferring the property, some states base the fees on a percentage of its value — for instance, 4% of the first $100,000 and 3% of the rest. A personal representative can also ask for "extra fees" for doing more than the basic probate tasks, such as managing a business that needs to be sold.
The state's law also governs the fees, which are typically calculated in the same manner as the personal representative's fees. Lawyers can request additional fees for services beyond the essential probate duties.
Not all estates require an attorney. Less complicated estates would likely not need this service — but for complex estates involving businesses, multiple properties, or disputes, legal representation becomes essential.
These charges will vary based on the total value of the estate and the nature of the assets held. A small estate with 25 different stocks or bonds may incur more accounting charges than a more extensive estate with a primary residence or bank account and CD.
You may need to pay accounting costs to file and prepare estate tax returns — this applies if the estate is taxed federally or at the state level. Sometimes, the estate attorney can prepare and file these tax returns.
The probate process will need date-of-death values for real estate and business interests, as well as personal assets such as antiques, jewelry, paintings, boats, and automobiles.
Appraisal costs for personal property vary between a few hundred and thousands of dollars, while fees for business valuations could be several thousand — especially for operating businesses with complex financials.
The executor or personal representative must buy and secure a bond before being chosen. A probate judge determines the bond amount, and the estate typically covers these costs.
Even for minor beneficiaries, the probate judge may order that a bond be posted. If you don’t request a bond waiver in your will, a judge can disregard your wishes if there are children involved.
Other fees can range widely — from shipping and insuring personal property to storage, notary fees, and estate sale preparation. These do not include income or estate taxes due and payable during the probate administration process, which can further deplete the estate.
Reference
The court-supervised legal process of proving a will is valid, paying the decedent’s debts, and distributing the remaining assets to beneficiaries. Can take months to years, and all records become public.
The person named in a will (or appointed by the court if no will exists) to administer the estate — collecting assets, paying debts, filing taxes, and distributing property to beneficiaries.
The person who made the will. If that person died without a will, they are said to have died intestate.
Dying without a valid will. When this occurs, state intestacy laws determine who inherits the estate — the court, not you, decides how your assets are distributed.
A court-issued document that authorizes the executor to act on behalf of the estate — open accounts, sell property, and pay debts. Nothing can happen until these are issued.
All property, assets, and liabilities owned by a person at the time of their death — including real estate, bank accounts, investments, vehicles, and personal belongings.
A person or entity named to receive assets from an estate, trust, retirement account, or life insurance policy.
A person or institution to whom the decedent owed money. Creditors must be notified during probate and paid before any distributions are made to beneficiaries.
A formal, itemized list of all the decedent’s assets and their values filed with the probate court. This list becomes part of the public record.
A person legally entitled to inherit under state intestacy law in the absence of a will. An heir and a beneficiary may be the same person, but not always.
The person who has died whose estate is being administered through the probate process.
What remains of the estate after all specific gifts, debts, taxes, and fees have been paid and distributed — the "leftovers" that pass to residuary beneficiaries.
The Simplest Way to Avoid All of This?
A properly funded Revocable Living Trust keeps your estate entirely out of probate — saving your family time, money, and heartache.
See Our Trust PackagesSchedule a free consultation and learn how a low-cost living trust can protect your family from unnecessary court costs, delays, and public exposure.
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