| |
Question:
What Does Probate cost?
Answer: The AARP did a national
survey some years ago and determined that probate costs run on
average 2 to 10% of a person’s estate. But on a
$300,000 estate, that can still cost $6,000 to $12,000. And in
some cases, the costs can go much higher.
Question:
So two to four percent - that's the real cost of probate?
Answer: That’s the monetary
costs, but that’s not the only costs. Probate generally takes
at least 9 months to a year. There can be lots of hassles, lots
of disappointments, lots of worry and difficulty, lots of
energy.
These non-monetary costs
can be high. When you combine the monetary and personal costs,
that’s the real cost of probate. |
View
an estimated Probate
Time Line Here
|
The State of California has established the
minimum cost of probate, which is set forth in the chart
below. These amounts are set out by the Probate
Code §10810
This chart does not include extraordinary fees
granted by the Court for sales of assets during probate,
preparation of death tax return (Form 706), litigation
expenses, etc.
| Gross Assets |
U.P.C. §10810
Fees |
|
| First $100,000 |
4% of the Total
Gross Assets Probated |
| Next $100,000 |
3% of the Total
Gross Assets Probated |
| Next $800,000 |
2% of the Total
Gross Assets Probated |
| Next $9,000,000 |
1% of the Total
Gross Assets Probated |
| Next $15,000,000 |
0.5% of the
Total Gross Assets Probated |
| Over $25,000,000 |
Reasonable
Amount:
To be Determined by the Court |
|
A $1,000,000 Estate,
without any tax credits, would pay:
-
4% on the first
$100,000, ($4,000)
-
3% on the next
$100,000 ($3,000)
-
2% on the next
$800,000 ($16,000)
-
Total
Probate Fees = $23,000.00
|
|
''Probate Assets'' means assets actually passing through
probate administration. Fees are based on the gross value of each
asset plus income receipts, plus gains on sales, less loss on sales,
during probate administration.
Remember that, in California, you can transfer up to
$100,000.00 of financial assets to another without probate and that
spouses can transfer all of their community property to the surviving
spouse without probate (although that might be ill-advised if you are
going to waste your exemption). For more information see our Small
Estates Page
Also, joint tenancy, life insurance, annuities and
retirement plan benefits typically do not go through probate.
|
|
|
