What is probate? Probate is the court procedure whereby we establish the authenticity and sufficiency of a decedent’s will, if any, identify and evaluate the decedent’s assets, pay administrative expenses and approved claims of creditors and distribute the remaining estate to the beneficiaries.
Probate involves at least some court supervision and is a matter of public record. The whole process typically takes at least eight months.
Probate can be expensive. Fees for the services of the executor and the attorney for completing the basic administration of the estate are set by law as a percentage of the gross estate accounted for. The executor and the attorney will each be entitled to these statutory fees as follows:
on the first $100,000……………………………………$4,000
on the next $100,000……………………………$3,000
on the next $800,000, the fee will be 2 percent, or up to $16,000.
In addition, the executor and the attorney may be entitled to extraordinary fees, for services rendered in connection with such responsibilities as the management, leasing, preparation, marketing and sale of real or personal property, at rates to be determined by the court. That can add thousands of dollars to the price of administration.
Other administrative expenses, including filing, clerk order and publication fees, charges for certified copies and probate referee and appraisal, fees, will add up to hundreds of dollars, perhaps over $1,000, depending on the size of the estate.
For example, if John Client dies owning a house worth $370,000, subject to a $200,000 mortgage, a $10,000 CD, furniture and furnishings worth $ 8,000 and a car worth $12,000, the estimated fees and court costs to probate his estate will be at least $22,500, not including a bonding fee or any extraordinary fees, on a net estate of $200,000. That’s why we try to avoid probate, by use of a living trust and other related documents.
Jerry Kessler practices law in Santa Clarita.
For further information, you may contact him at 661-255-1001.