Probate Process & Cost

To probate a will, the probate process, is a court preceding that finalizes a person’s debts by settling them and having legal title to property transferred from the decedent to his or her beneficiaries or heirs. The probate process can be lengthy, lasting from several months to over one year, and can incur massive court and probate attorneys fees because of the length of the process. Many people try to avoid the process of probate and the probate cost by creating living trusts, giving gifts during their lifetime, creating pay-on-death accounts or by having joint ownership of property. If you are not able to avoid the process of probate then the following on probate administration and costs will be beneficial to you.

The Probate Process

Probate is always initiated in the county where the deceased person had his or her permanent residence. Before the process can begin, the executor of the will must step forward with a legal copy. If there is no will, then someone will ask the court to appoint an administrator to act in the same capacity as an executor. This person is typically the surviving spouse or an adult child. The process of probate can be divided into three main steps and they are as follows:

• Collection, Inventory, and Appraisal: The first step in the probate process is to collect, take inventory, and appraise all assets of the estate that are subject to probate. Inventory must be performed by the executor of the estate and must file the inventory with the court. The assets of the estate can include money such as loans, final paycheck, life insurance or a retirement account that is made payable to the estate
• Paying the Bills of the Decedent: The second step in the probate process is to pay all of the bills of the decedent, even if it means a probate sale to come up with the money. These bills include taxes, estate expenses, and creditors of the decedent. If there is not enough money in the estate to pay the bills the executor is not responsible for paying those bills out of pocket. An allowance under the law is given to the surviving spouse and children, which comes off the top of the estate, and is set aside before anything else. The order of payments against the state consists of the following: costs/expenses of administration, funeral expenses, debts and taxes and all other claims
• Formal Transfer of Estate Property: The third and final step in the probate process is to transfer the estate property according to the terms of the will or the intestacy laws of the state in which the decedent lived

Costs of Probate

The costs of the probate process include the following:

• Appraisal costs
• Personal representation fees
• Court costs
• Costs for a type of insurance
• Legal fees
• Accounting fees

Once all of these fees are added up at the conclusion of the probate process it might cost anywhere from 3-7 percent of the entire estate.

Legal Help

If you or a loved one is part of the probate process, contact a wills and inheritance attorney for expert legal counsel regarding your situation.