How Much Does Probate Administration Cost?
The cost of probate administration can be significant because you have court costs (filing fees, publication, appraisal costs, etc.), compensation for the personal representative, and compensation for the attorney for the personal representative. Another important cost is time because the probate process generally takes at least one year to complete but may take longer depending on the assets and administration issues involved in the proceeding.
In California, the average court costs are about $2,000, which is made up of about $500 for the initial filing fee, about $700 for the publication costs, about $500 for the appraisal costs, and about $500 for the filing fee for the final petition filing fee. There are other miscellaneous costs along the way, depending on what additional steps are needed in the process.
In California, the compensation for the personal representative and compensation for the attorney for the personal representative are set by statute. The ordinary compensation calculation is based on the value of the assets of the estate multiplied by staggered percentage rates which decrease as the value of the estate increases. The value of the estate for purposes of ordinary compensation (the compensation base) is determined by taking the appraised value of the assets and adding any receipts (income) plus any gains from the sales of assets (sale price – appraised value), and subtracting any losses from the sales of assets (appraised value – sale price). The appraised value of the assets is determined by the personal representative for cash assets and by a court appointed probate referee for non-cash assets. An illustration of this is as follows:
Appraised Value of Assets
+Receipts (Income)
+Gains on Sale
-Losses on Sale
Compensation Base
It should be noted that the above calculation is for ordinary services. The California Probate Code also provides that both the personal representative and his or her attorney may receive additional compensation for extraordinary services in an amount allowed by the court as it deems just and reasonable. Effectively, this turns into a reasonableness calculation based on the circumstances.
For a personal representative, extraordinary services may include selling or managing real or personal property, business management, tax return preparation, or handling audits or litigation of the estate.
For the personal representative's attorney, extraordinary services may include a variety of other services, typically for issues that require the assistance of legal counsel such as selling assets, litigation, or out-of-state administration.
For self-assessment, below is a chart which reflects the cost of a probate administration for an ordinary administration which does not involve any extraordinary services, litigation, or complex assets, and which excludes other administrative costs (i.e., taxes, etc.).
|
Estate Value |
Court Costs |
Administrator Compensation |
Attorney's Fees |
Total |
|
$100,000* |
$ 1,900.00 |
$ 4,000.00 |
$ 4,000.00 |
$ 9,900.00 |
|
$200,000 |
$ 1,900.00 |
$ 7,000.00 |
$ 7,000.00 |
$ 15,900.00 |
|
$300,000 |
$ 2,000.00 |
$ 9,000.00 |
$ 9,000.00 |
$ 20,000.00 |
|
$400,000 |
$ 2,100.00 |
$ 11,000.00 |
$ 11,000.00 |
$ 24,100.00 |
|
$500,000 |
$ 2,200.00 |
$ 13,000.00 |
$ 13,000.00 |
$ 28,200.00 |
|
$600,000 |
$ 2,300.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 32,300.00 |
|
$700,000 |
$ 2,400.00 |
$ 17,000.00 |
$ 17,000.00 |
$ 36,400.00 |
|
$800,000 |
$ 2,500.00 |
$ 19,000.00 |
$ 19,000.00 |
$ 40,500.00 |
|
$900,000 |
$ 2,600.00 |
$ 21,000.00 |
$ 21,000.00 |
$ 44,600.00 |
|
$1,000,000 |
$ 2,700.00 |
$ 23,000.00 |
$ 23,000.00 |
$ 48,700.00 |
|
$1,100,000 |
$ 2,800.00 |
$ 24,000.00 |
$ 24,000.00 |
$ 50,800.00 |
|
$1,200,000 |
$ 2,900.00 |
$ 25,000.00 |
$ 25,000.00 |
$ 52,900.00 |
|
$1,300,000 |
$ 3,000.00 |
$ 26,000.00 |
$ 26,000.00 |
$ 55,000.00 |
|
$1,400,000 |
$ 3,100.00 |
$ 27,000.00 |
$ 27,000.00 |
$ 57,100.00 |
|
$1,500,000 |
$ 3,200.00 |
$ 28,000.00 |
$ 28,000.00 |
$ 59,200.00 |
|
$1,600,000 |
$ 3,300.00 |
$ 29,000.00 |
$ 29,000.00 |
$ 61,300.00 |
|
$1,700,000 |
$ 3,400.00 |
$ 30,000.00 |
$ 30,000.00 |
$ 63,400.00 |
|
$1,800,000 |
$ 3,500.00 |
$ 31,000.00 |
$ 31,000.00 |
$ 65,500.00 |
|
$1,900,000 |
$ 3,600.00 |
$ 32,000.00 |
$ 32,000.00 |
$ 67,600.00 |
|
$2,000,000 |
$ 3,700.00 |
$ 33,000.00 |
$ 33,000.00 |
$ 69,700.00 |
|
$2,250,000 |
$ 3,950.00 |
$ 35,500.00 |
$ 35,500.00 |
$ 74,950.00 |
|
$2,500,000 |
$ 4,200.00 |
$ 38,000.00 |
$ 38,000.00 |
$ 80,200.00 |
|
$2,750,000 |
$ 4,450.00 |
$ 40,500.00 |
$ 40,500.00 |
$ 85,450.00 |
|
$3,000,000 |
$ 4,700.00 |
$ 43,000.00 |
$ 43,000.00 |
$ 90,700.00 |
|
$3,250,000 |
$ 4,950.00 |
$ 45,500.00 |
$ 45,500.00 |
$ 95,950.00 |
|
$3,500,000 |
$ 5,200.00 |
$ 48,000.00 |
$ 48,000.00 |
$ 101,200.00 |
|
$3,750,000 |
$ 5,450.00 |
$ 50,500.00 |
$ 50,500.00 |
$ 106,450.00 |
|
$4,000,000 |
$ 5,700.00 |
$ 53,000.00 |
$ 53,000.00 |
$ 111,700.00 |
|
$4,250,000 |
$ 5,950.00 |
$ 55,500.00 |
$ 55,500.00 |
$ 116,950.00 |
|
$4,500,000 |
$ 6,200.00 |
$ 58,000.00 |
$ 58,000.00 |
$ 122,200.00 |
|
$4,750,000 |
$ 6,450.00 |
$ 60,500.00 |
$ 60,500.00 |
$ 127,450.00 |
|
$5,000,000 |
$ 6,700.00 |
$ 63,000.00 |
$ 63,000.00 |
$ 132,700.00 |
|
$7,500,000 |
$ 9,200.00 |
$ 88,000.00 |
$ 88,000.00 |
$ 185,200.00 |
*An estate of this value may only be subject to small estate administration and the cost of administration may be less with less court costs.
As you can see, probate administration can be expensive, but it's not always worth doing a trust, but at the same time it might not always be best to have just a single trust.
You may also be interested in:
- Can I Hire an Attorney as an Executor, Trustee, or Agent?
- Do I Get Paid to Serve as an Executor, Trustee, or Agent?
- How Much Does Trust Administration Cost?
- What is a Probate?
- What is Probate Administration?
- What is Reasonable Compensation?
- What is Small Estate Administration?
- What is Trust Administration?
- Why Does Trust and Estate Administration Exist?
