Assets held in a revocable living trust will not have to go through the probate process. Why should this matter to you?
The number one reason is the cost of probate. There will be fees due to the county, and, for most people, attorneys fees. And it can be very time consuming.
What is Probate? Probate is a legal proceeding that is used to wind up a person's legal and financial affairs after death. In California probate proceedings are conducted in the Superior Court for the county in which the decedent lived, and can take several months and sometimes as long as several years. Currently estates that are valued at more than $184,500 generally have to be probated. (Be aware that real estate is based on it's actual value, not just your equity).
Typical fees for a Probate:
Fees paid to the Court
A typical, ordinary attorney’s fee -- called a “statutory” fee -- is based on the fair market value of the assets in the estate. The fee doesn’t take liabilities into account. The probate code establishes a sliding scale:
Example #1
Say the only asset in an estate is a $500,000 house, and there is a $400,000 mortgage on it. The statutory fee would be $13,000 based on the full $500,000 value:
The executor is entitled to charge the same fee as the probate lawyer charges. Often the executor is a family member who will waive the fee. (Most family members start out saying “it’s my family; I’m not going to charge." But in many cases they change their minds after they see how much work is involved and that no one else is helping.)
Appraisal fees
All of the assets that the decedent owned need to be “inventoried” and “appraised”. The Court appoints the appraiser, whose fees are 0.1% of the value of the appraised assets (so in a $500,000 estate the appraisal fee would be $500).
Example #2
Here’s how the fees would add up on a simple $500,000 probate case.
GOOD NEWS! >>>>>> This can all be avoided with a properly prepared revocable living trust. Please call me to start preparing your living trust today.
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IF it's "too late":
We can also help with probate and still save you thousands of dollars in attorney's fees. we can only handle "simple estates", those without problems such as disputes among beneficiaries, questions regarding ownership of property, or other legal issues.
Information on this page is from the following websites:
http://www.nolo.com/legal-encyclopedia/california-probate-an-overview.html
http://www.calprobate.com/blog/bid/64222/What-Are-Typical-California-Probate-Attorney-Fees#
The number one reason is the cost of probate. There will be fees due to the county, and, for most people, attorneys fees. And it can be very time consuming.
What is Probate? Probate is a legal proceeding that is used to wind up a person's legal and financial affairs after death. In California probate proceedings are conducted in the Superior Court for the county in which the decedent lived, and can take several months and sometimes as long as several years. Currently estates that are valued at more than $184,500 generally have to be probated. (Be aware that real estate is based on it's actual value, not just your equity).
Typical fees for a Probate:
Fees paid to the Court
- There is a $435 fee payable to the Court for each petition you have to file. In simple probate cases you only have to file two petitions: the initial “Petition to Probate” the estate and a Petition for Final Distribution.
- For more complex cases, you may have to file additional petitions.
- You’ll also have to file a Notice of Probate in a newspaper. You are required to use only certain newspapers, and their charges will vary. Expect the notice to cost anywhere from $100 to $450.
A typical, ordinary attorney’s fee -- called a “statutory” fee -- is based on the fair market value of the assets in the estate. The fee doesn’t take liabilities into account. The probate code establishes a sliding scale:
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% on the next $9,000,000
- 0.5% on the next $15,000,000
- A reasonable fee thereafter
Example #1
Say the only asset in an estate is a $500,000 house, and there is a $400,000 mortgage on it. The statutory fee would be $13,000 based on the full $500,000 value:
- 4% of the first $100k = $4,000
- + 3% of the next $100k = $3,000
- + 2% of the remaining $300,000 = $6,000
- Total: $13,000
The executor is entitled to charge the same fee as the probate lawyer charges. Often the executor is a family member who will waive the fee. (Most family members start out saying “it’s my family; I’m not going to charge." But in many cases they change their minds after they see how much work is involved and that no one else is helping.)
Appraisal fees
All of the assets that the decedent owned need to be “inventoried” and “appraised”. The Court appoints the appraiser, whose fees are 0.1% of the value of the appraised assets (so in a $500,000 estate the appraisal fee would be $500).
Example #2
Here’s how the fees would add up on a simple $500,000 probate case.
- $435 Court filing fee
- $100 publication fee
- $500 appraisal fee
- $435 fee to file Petition for Final Distribution
- $13,000 attorney's statutory fee (see above example under "statutory fee")
- Possibly a $13,000 executor’s statutory fee
- Total: $14,470 to $27,470
GOOD NEWS! >>>>>> This can all be avoided with a properly prepared revocable living trust. Please call me to start preparing your living trust today.
* *******************************************************************************************************************************************************************************
IF it's "too late":
We can also help with probate and still save you thousands of dollars in attorney's fees. we can only handle "simple estates", those without problems such as disputes among beneficiaries, questions regarding ownership of property, or other legal issues.
Information on this page is from the following websites:
http://www.nolo.com/legal-encyclopedia/california-probate-an-overview.html
http://www.calprobate.com/blog/bid/64222/What-Are-Typical-California-Probate-Attorney-Fees#