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How
Much Does Probate Cost?
Appraisal of
Property
Before the property in your estate can be
distributed, the court must determine its
value. The probate referee appraises the
property in your estate. The fee for this
appraisal is ordinarily 1/10 of 1% (i.e.,
0.1%) of the appraised value of your
estate.
Cal.
Prob. Code §
8961. The
appraiser determines fair market value (FMV)
of all
real and personal property in reaching
this conclusion. The probate referee will receive at least $75,
regardless of the actual value of the estate. Cal. Prob. Code § 8963(a).
Taxes
At some point, your successors or heirs will
need to pay taxes on your estate. Most
wills contain a provision instructing your
personal representative how to allocate the
taxes. Generally, there are two ways of
making this allocation: 1) the personal
representative pays the taxes directly from
your estate so that each beneficiary
receives your gift without having to pay the
taxes on it, or 2) each beneficiary under
your will must pay the taxes on his or her
gift based on the fair market value of the
gift.
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For example, let us assume you pass away and
own real property (your house) with a fair
market value of $400,000, making the
appraised value $400,000 (your liabilities,
such as a mortgage do not figure into this
equation). Also, you own personal property
(furniture, cars, computers, jewelry, etc.)
valued at $100,000. Let us further assume
that a basic will is the only estate
planning tool you have used. According to
the current published court fee schedule for
California and the California statutes, the
fees for probate administration would be as
follows:
$485 filing fee for estate (valued at
$500,000 total)
+ $500 property appraisal fee (0.1% of
property value)
+ $13,000 Personal Representative Fees (Cal.
Prob. Code §§ 10800-10805)
+ $13,000 Fees for Attorney of Personal
Representative (Cal.
Prob. Code §§ 10810-10814)
= $26,985
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This figure does not include funeral
expenses, additional court fees which may
arise, and expenses for the upkeep of the
property.
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As you can see, probate can be an expensive
and drawn-out process. That is why many
people today are interested in trusts. For
more information on trusts, please see the
other areas of our website.
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