How much does probate cost?
The cost of probate may be set by state law or by practice and custom in your community. When all the costs are added up – and the costs may include appraisal costs, executor’s fees, court costs, costs for a type of insurance policy known as a “surety bond”, plus legal and accounting fees, probate can easily cost from 3% to 7% of the total estate value, and more. If there is a “Will contest” all bets are off.
Despite what probate lawyers say, probate is expensive. The average cost of probate may rise to over seven percent of the gross value of the estate. The probate lawyers usually take sixty percent of the cost, and forty percent goes to personal representatives and others. One legal scholar who urges a reform in the probate system remarked that “the cost of probate expands to consume the money available.” There just isn’t that much to go around. Remember, every dollar that goes to pay probate costs is a dollar that could benefit your family.
Despite what some probate lawyers say, probate is very expensive. One critic of the system says that the average cost is over seven percent of the gross value of the estate. A full sixty percent of the costs goes to lawyers and forty percent to personal representatives and others. One legal scholar who urges a reform in the probate system remarked that, “the cost of probate expands to consume the money available.” Small estates are particularly vulnerable because even reasonable fees can eat up a large percentage of an estate’s assets. There just isn’t that much to go around. Remember, every dollar that goes to pay probate costs is a dollar that could benefit your family.
There are two main costs to consider in probate. The first is the cost of the executor or administrator, the second is the probate attorney. Both costs are determined by statute. Fees for an ordinary probate are the following: • Four percent of the first one hundred thousand dollars. • Three percent of the next one hundred thousand dollars. • Two percent of the next eight hundred thousand dollars. • One percent on the next nine million dollars. • One-half percent on the next fifteen million dollars. • For all amounts above twenty-five millions dollars the court will give a “reasonable amount.” Who determines what the value of the estate is? The court appoints a referee (an appraiser) to provide the fair market value of the estate as of the time of the decedent’s death. Any liens or encumbrances (such as mortgages) are not a factor in determining the fees. The personal representative (executor or administrator) is also entitled to a fee for their services. His or her fee follows the sam
The cost of probate may be set by state law or by practice and custom in your community. When all the costs are added up and the costs may include appraisal costs, executor’s fees, court costs, costs for a type of insurance policy known as a “surety bond”, plus legal and accounting fees, probate can easily cost from 3% to 7% of the total estate value, and more. If there is a “Will contest” it could be much greater.
