What You Need to Know About California Probate Fees
Probate, or the process of establishing the validity of a deceased person’s will, can be a lengthy and expensive process. Here’s what you need to know about California probate fees.
Probate costs depend on a variety of factors, including location, size of the deceased person’s estate, and how complicated the estate plan is. Probate is something that can be avoided, or at the very least, shortened and less costly.
Related: California Probate: What You Need to Know
What are Probate Fees?
Probate fees are the fees necessary to facilitate the probate process, which must be completed in order for a deceased person’s assets to be distributed to their beneficiaries. Probate is important as it allows the beneficiaries to receive the correct distribution of the deceased person’s property. Usually, the following components are included in one’s probate fees. These fees are usually paid out of the estate itself, rather than out of pocket.
- Probate attorney and accounting fees
- Court fees
- Executor and bond fees
- Other fees, including for appraisals, postage, notary, and storage
What is the California Probate Fees Calculator?
The California Probate Code Section 10810 states that the attorney and executor shall receive a required fee for administering the deceased person’s estate. There are a number of online calculators that automatically calculate the required fees based on the estate that any individual is working with, but the laws outlined in the Probate Code are as follows:
- 4% on the first $100,000
- 3% on the next $100,000
- 2% on the next $800,000
- 1% on the next $9,000,000
- 0.5% on the next $15,000,000
- For any amount above $25,000,000, a reasonable amount will be determined by the court.
FAQs About California Probate Fees
What is the point of probate?
Probate is a necessary process in order for the court to facilitate the passage of a deceased person’s estate, as directed in their will, to their beneficiaries. The probate court’s duty is to ensure that the right assets are distributed to the right beneficiaries. In some cases, the deceased person may have debt or a mortgage that must be paid before the property can be passed on. Additionally, the probate court can rule on the authenticity of various documents if they are contested, as well as the mental stability of the individual who signed them.
Probate seems so expensive. Will I be paying for this out of pocket?
No. Generally, probate fees are covered by funds from the estate with which you are working with. However, this means that because fees will be coming out of the estate, the distribution that your loved one’s beneficiaries will be receiving will be smaller, so probate is something that some people want to avoid.
How long does probate take on average?
The length of probate can vary on a case-by-case basis, but generally, probate can last between nine months and several years. On average, most probate cases take approximately a year and a half.
How can I avoid probate altogether? Should I try to avoid it?
Probate can be a long and costly process, which is why some people try to avoid it. In the state of California, a deceased person’s estate can bypass probate if the estate value is less than $166,250 (which is considered the small estate threshold), if there is a living trust and any assets outside of the trust are valued less than $166,250, and if assets are set up to pass directly to the deceased person’s beneficiaries after their death.
Related: How to Avoid Probate in California Estate vs Inheritance Tax
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