How much does probate cost?
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 same schedule as the attorney’s fees.
Where there is a will and the decedent provided how much the attorney and executor are to be paid then this amount will take precedence over the schedule. If the fee set out in the will is too small the personal representative may petition the court to raise fees to the statutory amount.
There may be other attorney fees in addition to the fees described above. The above schedule only applies for and “ordinary” probate proceeding. Other extraordinary attorney fees may apply as well. If the attorney was required to oversee a sale of a property or mortgage the property, conduct the decedent’s business, defend a will contest, or defend the personal representative’s accountings additional fees may be granted.
An attorney may enter into a “contingency agreement” with the personal representative. This means that if there is no recovery from the estate at the conclusion of probate then the attorney goes unpaid after all his hard work. The agreement must be in writing and approved by the court as to the percentage. The court must find that the arrangement is in the estate’s best interest. If the estate is “ordinary” and there are no unusual difficulties presented to the court it might not allow fees greater than the statutory amounts.
The personal representative and/or probate attorney is allowed to hire an independent tax attorney and/or accountants for preparation of the estate’s tax return. This cost is paid out of the estate, not the probate attorney’s fees.
Also be prepared to pay the referee for the appraisal and for any other experts that are necessary to manage the estate during the probate. If there is a will contest then there may be court-reporter’s fees and other expert witness fees, such as physicians that are subpoenaed to testify as to the decedent’s state of mind when he signed the will.
From Sebastopol, the Law Offices of Graden Tapley represents clients throughout Sonoma County, including Santa Rosa, Cotati, Healdsburg, Petaluma, Rohnert Park, Santa Rosa, and Windsor.