Probate Cost

• Probate involves a number of potential costs -- appraisal fees, executor's fees, court filing fees, surety bond fees, legal fees and accountancy fees. These expenses are paid out of the estate, then the remainder of the estate is distributed to the beneficiaries. Depending on the complexity of the circumstances, total probate costs are estimated to run 2-7 percent of the value of the estate, or $2,000 -$7,000 for an estate (house, cars, stocks, bonds, bank accounts, etc.) worth $100,000.
• Probate laws vary considerably by state, so costs vary also. A Utah attorney estimates that the average cost of probating an uncontested will there is $2,000 -$3,000. An attorney in the state of Washington pegs it at $2,500 -$5,000. California law sets maximum amounts that can be paid to the executor and attorney in a standard probate process; for a $100,000 estate it's $4,000 each or $8,000 total; for a $500,000 estate it's $13,000 each or $26,000 total.
• The executor (sometimes called a personal representative) is the person named (usually in the will) to administer the estate. The executor is legally entitled to be paid for his or her services, but if this person is a family member and/or the sole beneficiary of the estate, he or she can choose to not charge any fees, which cuts the cost of probate.
• If the will is contested (someone files a legal claim saying the will's invalid and the estate should be distributed differently than as specified in the will), probate costs can skyrocket.

• Generally the steps in probate include; proving in court that a will is valid (usually a routine step); identifying and inventorying the property of the deceased; having the property appraised; paying debts and taxes; and distributing the remaining property as the will stipulates, or following state law if there's no will. In some cases probate can be completed in 30 days, but most often the process takes 4 months to a year or more, particularly if the will is contested. The probate process varies by state; FindLaw.com provides links to estate and probate laws by state.

• Attorneys working on an hourly basis charge for any time spent answering your questions on the phone or by e-mail, as well as case-related expenses such as interviews, research or photocopies. Charges are usually done in quarters or tenths of an hour; a six-minute phone conversation may be billed as 15 minutes.

• Although you can choose to hire the attorney who drafted the will to handle the probate process, it's not required. Ask about the attorney's experience and specific training in estate planning and probate law. At the first meeting, be prepared to provide as much information as possible. FindLaw.com offers a questionnaire to complete before meeting with a probate lawyer.
• Referrals to lawyers are available through the American College of Trust and Estate Counsel and the American Academy of Estate Planning Attorneys.
• Your attorney should provide you with a written fee agreement. Be sure you understand what is covered, and any other fees and expenses you might have to pay.

More Articles in Estate Planning