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.
The major probate expenses include court costs and fees paid to the personal representative and the attorney. The funds to pay these expenses come out of the estate. The value of the estate’s assets will determine the court filing fees. Attorney fees vary depending on the complexity of the estate. Also, fees vary from one attorney to another, depending on experience and other factors. Billing methods also differ. Some lawyers charge by the hour; others charge a fixed fee. But by law, the attorney cannot base charges for probate services on a percentage of the estate’s value. Once an attorney has basic information about the estate, he or she should be able to give you a rough estimate of total fees. Be sure you understand the fee arrangement before retaining the attorney. The personal representative has a right to reimbursement for expenses incurred in managing and settling the estate, and for time spent carrying out those duties. Payment for the latter may equal 2 percent of the invent
The cost of probate will depend on several factors, including but not limited to the size and complexity of the estate, whether a bond is required under the Will, and costs to locate beneficiaries. If there is a Will contest or dissention among the beneficiaries, costs could skyrocket. Top of Page Return to FAQ List Trust. Experience. Advice.
Many people have attended seminars where they are told that the probate process is outrageously expensive and loots the assets of the decedent’s estate. Actually, probate usually costs less than the percentage you would pay to a real estate agent to sell a house of the same value as the estate. The executor and the attorney he or she hires are entitled to receive the same fee, which is based on the size of the estate. This fee is calculated as follows: 4% of the first $100,000.00, 3% of the next $100,000.00, 2% of the estate over $200,000 and 1% of the estate over $1 million. In Mary Jones’ case, her total estate is $555,000.00. The executor and the attorney would each receive the following: 4% of $100,000.00 4,000.00 3% of $100,000.00 3,000.00 2% of $355,000.00 7,100.00 _____________ Total: $14,100.00 Attorney’s and executor’s fees, therefore, would total $28,200.00, which is five percent (5%) of the total estate. In practice, many times the executor will waive his or her fee. In addi
