What is Probate?

Probate is the process by which California courts wind up an individual’s legal and financial affairs after death. Probate is time consuming, and can be a very expensive process. California probate takes a minimum of six months to complete and can take up to several years depending on the complexity of the assets and debts involved in the estate. The estate must pay both an attorney and an executor separate fees to handle the process. These fees are set by statute and are therefore non-negotiable, although executors sometimes waive their fees.

The purpose of probate is to finalize all of the affairs of the estate. To this end, the executor, with the attorney’s assistance, makes an inventory of the estate’s assets, locates creditors, pays bills, files tax returns, and manages the estate’s assets. Once this is done, the executor petitions the court to distribute the remaining assets to the heirs in accordance with the will of laws of intestate succession.

Assets placed in trust generally avoid probate and can be passed on to heirs almost immediately and at very little cost. If you wish to discuss how to avoid probate, you should contact an estate planning attorney to discuss your objectives.

Probate fees

The fees you must pay an attorney to handle your probate are as follows:

• Four percent of the first $100,000 of the estate;
• Three percent of the next $100,000;
• Two percent of the next $800,000;
• One percent of the next $9,000,000; and
• One-half percent of the next $15,000,000.

The court determines the fees for estates larger than $25,000,000. In addition to the statutory fees, there are court filing fees and various administrative costs associated with the probate process. Also, an attorney can petition the court for additional fees if the process turns out to be very complex or time consuming.

Examples of probate fees

Next section: Trusts