Approximately the Costs of California Probate
Many people know that probate in California can get expensive, and they are not exaggerating. California probate fees are set by law. They can add up, especially when real estate is involved.
So, what are the approximate costs of California probate?
Many times, that depends on the value and the assets of the estate. But some guidelines can give you a good idea of what you can expect.
California Uses a Statutory Fee System
In many states, attorneys charge hourly rates for probate work. However, it is different in California. There is a statutory fee schedule set by law. These fees apply to both the probate lawyer and the personal representative of the estate.
These fees are calculated as a percentage of the gross value of the estate. The standard fee schedule looks like this:
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9,000,000
- 0.5% of the next $15,000,000
Since the lawyer and the executor are both entitled to these same fees, that amount is doubled when calculating total statutory costs. For an estate valued at $500,000, the statutory fee calculation might be:
- Attorney fee: about $13,000
- Executor fee: about $13,000
That brings the total statutory fees to $26,000 before any other costs are added.
What are the Overall Probate Costs?
When all expenses are included, probate in California costs around 3% to 7% of the total estate value. This means:
- $500,000 estate about $20,000 to $35,000
- $1,000,000 estate about $40,000 to $70,000
- A $2,000,000 estate could exceed $80,000 or more
Remember that the larger the estate, the higher the total probate costs can climb.
What Are Some Other Expenses?
Attorney and executor fees are the biggest expenses, but they are not the only ones involved in a probate case. Some additional costs may include:
- Court filing fees: Opening a probate case costs between $435 and $465, depending on the county.
- Publication fees: Since California requires notice of the probate case to be published in a local newspaper, this can cost an additional $200 to $500.
- Appraisal and referee fees: The court appoints a probate referee to determine the value of certain assets. These fees are around 0.1% of the appraised assets.
- Accounting or tax preparation: Preparing tax returns or financial accounting for the estate can add hundreds or thousands of dollars in professional fees.
If the estate includes real estate that must be sold, real estate commissions may also apply.
Probate Fees Are Based on Gross Value
Keep in mind that California calculates probate fees based on the gross value of assets, not the equity.
So, if a home is worth $800,000 but still has a $500,000 mortgage, probate fees may still be calculated using the full $800,000 value. This is one reason probate costs can feel extremely high in some cases.
Smaller Estates May Avoid Probate
Fortunately, not every estate has to go through the full probate process. In California, estates with a total value under $208,850 may avoid these proceedings.
Along with that, there are certain assets that may also bypass probate, including:
- Life insurance with named beneficiaries
- Retirement accounts with designated beneficiaries
- Jointly owned property
- Assets held in a living trust
With these exceptions, some estates only have a portion of their assets go through probate.
The California Probate Process Can Be Expensive
What are approximately the costs of California probate? Probate in the state can be expensive compared to many others. Since the law sets percentage-based fees for both attorneys and executors, costs can climb. For many families, probate expenses end up totaling around 3% to 7% of the estate’s value.
While probate is unavoidable, you need to know the potential costs of this process. At California Probate, we are here to help you manage your estate and assist throughout the probate proceedings. If you would like to learn more, contact us today to schedule a consultation.