If you are reading this post, I hope it is because you are interested in estate planning and that you have both the time and ability to complete your estate plan. Much of the heartbreak in the type of law this office practices, is the result of people failing to plan ahead of time and leaving families and loved ones to deal with the California probate process. Over the next several blog posts, I want to highlight a specific reason why you should be interested in avoiding probate and how this office can help you do so.
Probate Overview - In California, probate is a court process whereby the court determines what you own (assets), what you owe to others (debts) and who receives your assets after debts are paid (heirs). In 2023, if an individual passes away with assets in their own individual name exceeding $185,000, that individual’s estate will be subject to probate. As an example, if a single person passes away and owns their primary residence (not in a trust and not jointly owned with another person), valued at $650,000, that deceased individual’s estate will be subject to probate because it is over the probate limit.
REASON TO AVOID PROBATE #1 - COST
The #1 complain of clients facing the probate process is the cost involved. There are several costs involved before completion of a probate:
Filing Fees - Initial Filing fees, filing fees through the course of the probate process and the filing fees for final distribution of the estate can cost over $1,000
Newspaper Publication and Notice of Death - Depending on where the deceased individual resided, local newspaper publication can cost anywhere between $500-$1,500
Probate Referee Fees - The probate referee charged with appraising the value of the estate assets is paid for their services as a percentage of the estate value - From low hundred dollars to $1,000+ depending on estate value
Attorney Fees - Attorneys are paid on a statutory rate - 4% of the first $100,000 of estate value ($4,000), 3% of the next $100,000 of estate value ($3,000) and 2% of the next $800,000 of estate value. Thus, even the most minimal probate estate would incur attorney fees upwards of $6,000. Additionally, if the probate involves extraordinary work on behalf of the attorney, the attorney is allowed to request additional compensation.
Executor/Administrator Fees - If the Executor or Administrator so chooses, they can also receive compensation for their services, in the same amount as the compensation taken by the attorney.
HOW TO AVOID COSTS:
Avoid probate altogether by establishing, and maintaining, an estate plan prior to death
The Law Office of Heather Miller offers complimentary consultations (30 min.)
Call or email the office to setup a time (in person, phone call or zoom call) to discuss estate planning, avoiding probate, options available to you and pricing. We are happy to help.
Our goal is to assist as many people as possible setup thorough estate planning and avoid probate