In recognition of National Estate Planning Awareness Week (October 20-24), we are offering a series of articles designed to educate our clients on the importance of estate planning. First up, we answer the question: What does it actually cost if you die intestate, i.e., without having placed your assets into a trust?
Probate is a court procedure for distributing property and accounts of someone who dies in California without putting their assets into a trust. California probate fees are among the highest in the United States.
The cost of a California probate proceeding has several components: Statutory probate fees, court filing and administrative fees, and probate referee fees, among other things.
Statutory Probate Fees
California probate administrators (executors where a will is involved), and attorneys are entitled to statutory probate fees calculated based on the gross value of the estate. Gross value means that the value of the estate is determined before subtracting debts.
Currently, the statutory probate fees in California are as follows:
| Gross Estate Value | Statutory Rate |
| First $100,000 | 4% |
| Next $100,000 | 3% |
| Next $800,000 | 2% |
| Next $9,000,000 | 1% |
| Next $15,000,000 | 0.5% |
| Over $15,000,000 | Reasonable compensation as determined by the court. |
Note: Both the administrator and his or her attorney are entitled to receive statutory fees for their work in settling the estate. Therefore, whatever the statutory fees are according to the above framework, double that to get the total amount of probate fees.
Sample Calculation: How much will the estate pay in statutory probate fees for an estate with a gross value of $1,700,000? Let’s break it down.
| Gross Estate Value | Statutory Rate | Resulting Fee | Remaining Value |
| First $100,000 | 4% | $4,000 | $1,600,000 |
| Next $100,000 | 3% | $3,000 | $1,500,000 |
| Next $800,000 | 2% | $16,000 | $700,000 |
| Next $9,000,000 | 1% | $7,000 | $0 |
Take the sum of the third column from the left, “Resulting Fee,” and you can see that the estate will pay a total of $30,000 each to the administrator and the probate attorney.
Total Administrator (or Executor) Fee: $30,000
Total Attorney Fee: $30,000
Grand total for Probate Fees: $60,000
Extraordinary Fees
In some cases, the court may allow extra compensation to be paid to the administrator, executor and his or her attorney when they provide legal services above and beyond standard probate duties. This could occur, for example, if the attorney must defend claims against the estate or estate property, or litigate the validity of a will, or oppose a challenge to the administrator’s accounting, or for tax-related work (preparing returns, resolving disputes with taxing authorities), or management of the decedent’s business interests, or legal services related to the sale of property, locating hard-to-find estate assets, or securing a loan to pay estate debts. The list goes on. In such cases, the court has discretion to award “just and reasonable” fees based on the difficulty and time involved, the skills and expertise, the results achieved, and the overall value of the estate.
Court Filing and Administrative Fees
A comprehensive estate plan will often consist of a living trust, a will (yes, you still need a will!), an advance health care directive, and a power of attorney, among other documents. Each of these serves its own purpose and benefit, and avoids costly court proceedings.
Call us today for a consultation to discuss your planning needs.
