Probate is a legal system which has been designed to regulate the passing of ownership rights of the assets in the estate of a deceased to his heirs and loved ones. Without the probate process, the assets remain owned by the deceased person and they won’t be accessible by his loved ones. This means the heirs to the estate cannot make use of these assets.
The probate process is a legal means through which the probate court determines the validity of the will and last testament of the testator. If the probate court finds irregularities such as capacity issues in the will, it will declare the will invalid.
Also the probate process is used by the court to determine what happens to the estate of a deceased person who died intestate. This means that if a person dies without having a will, the court will use to process of probate to determine what happens to the person’s estate. The courts appoint an executor and decide how the estate will be distributed among the legal heirs of the estate. This is all based on the law of the state. In a situation whereby a loved one dies without bequeathing a particular asset to anyone, the asset will probably be sold.
Cost of probate
The cost of probate is not standard or definite; it varies from state to state. The total sum depends on the various fees which are paid for different purposes. Basically, the cost will be from 3% to 7% of the estate including every other fee. If you want to commence probate or you were named as an executor in an estate, the following are the various fees which make up the total probate cost and you should take note of them.
Attorney’s fee
The attorney’s fee is usually the fee in probate which is most costly. But this fee is not regular it depends on your state of residence and also on the value of the asset which is going through probate.
Below is an example of various range of value of estate and their estimated probate cost
- Value of estate up to $40,000: $1,500
- $40,000 to $70,000: $2,250
- $70,000 to $100,000: $3,000
- $100,000 to $1 million: $3,000, plus 3% of the value over $100,000
- $1 million to $3 million: $3,000, plus 2.5% of the value over $1 million
- $3 million to $5 million: $3,000, plus 2% of the value above $3 million
- $5 million to $10 million: $3,000, plus 1.5% on the value above $5 million
- More than $10 million: $3,000, plus 1% of the value above $10 million
Court cost
These fees are usually set by state laws and they vary based on location. They are not too costly but the more the more complicated an estate is, the more work will be required so definitely this means the higher the bill
Cost to secure the real estate/insurance premium
Among the very first things an executor does is securing the assets of the deceased person, these he does by changing locks, adding alarm systems, etc. he also includes an insurance policy. These of course will be cost effective.
Cost to make required repairs
If there is a reason for the asset to be put up for sale, the executor will have to make necessary repairs in order to put the assets in proper working condition for sale. This will also attract expenses; the level of repairs done will determine how costly this will be.
Cost for cleaning the property
This is similar to the cost incurred when making repairs, this cost comes up when you are trying to sell a property and there is the need to clean up the estate, probably there are trash which needs dumping, this will attract spending.
FAQ
What is the role of an attorney?
The role of an attorney is pretty straight forward, they provide assistance for the executor in areas where he is unclear or doesn’t know how to go about.
Is it possible to avoid these fees?
To some extent you can avoid most of these fees but there are some which you just can’t avoid because you can’t play the role of those carrying out the duty.
