California probate can be incredibly expensive, even as compared to other states. The law sets attorney and executor compensation based on a fee schedule. That fee schedule is based upon the value of your estate, not how complex the work is. Understanding these costs is essential to knowing what to expect.
At Filippi Law Firm, P.C., our California probate attorneys are ready to help. We help you navigate California probate when you need to so you can rest comfortably it is handled the right way.
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Statutory Attorney and Executor Fees in California
The California Probate Code establishes a mandatory formula for calculating both attorney fees and personal representative (executor or administrator) fees. These fees are identical, meaning the attorney and the executor each receive the same statutory amount unless the executor waives compensation.
The statutory fee schedule is:
- 4% of the first $100,000 of the estate
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9 million
- 0.5% of the next $15 million
- A “reasonable amount” for anything above $25 million
These percentages apply to the gross value of the estate, not the net value. That means debts are not subtracted before calculating fees.
What Counts Toward the “Value” of the Estate?
California’s valuation rules can significantly increase probate costs. The court uses the fair market value of assets when the death occurs, not based on the equity value.
Assets included in the valuation typically include:
- Real estate
- Bank accounts
- Investment accounts
- Vehicles
- Business interests
- Personal property
If any assets pass outside of probate, these are not added to the gross value of the estate for this purpose. This is another reason that proper estate planning can make a big difference when it comes to probate.
Additional Attorney Fees: “Extraordinary Services”
Statutory fees cover only routine probate administration. If the estate requires additional work, the attorney may request extraordinary fees, which must be approved by the court.
Common reasons for extraordinary fees include:
- Handling real estate sales
- Managing litigation or creditor disputes
- Preparing tax returns
- Addressing business interests
- Resolving title issues
- Managing complex accounting or asset tracing
Extraordinary fees are typically billed hourly and can add thousands of dollars to the total cost of probate.
Executor Reimbursement for Out-of-Pocket Costs
Executors may also get compensated for their actual expenses they incur while administering the estate. These could include:
- Travel costs
- Postage and mailing
- Storage fees
- Property maintenance or repairs
- Insurance premiums
- Professional services
Executors must keep receipts and maintain clear records to ensure the court approves reimbursement.
Court Costs and Mandatory Filing Fees
Beyond attorney and executor fees, probate involves several court-related expenses. Typical costs include:
- Initial petition filing fee
- Court-appointed referee appraisal fees
- Publication fees
- Certified copies
- Bond premiums
Bond premiums can be significant for larger estates, often ranging from a few hundred to several thousand dollars per year.
How to Reduce or Avoid Probate Costs
Many families choose to plan ahead to minimize or eliminate probate expenses. Common strategies include:
- Creating a revocable living trust
- Using transfer-on-death or pay-on-death designations
- Holding property in joint tenancy or community property with right of survivorship
- Updating beneficiary designations regularly
- Ensuring assets are properly titled to avoid unintended probate
These tools can significantly reduce the time, cost, and complexity of estate administration.
Get Help With California Probate
California probate can be expensive. Understanding the costs and how to avoid them can make a big difference for your estate.
Let the dedicated probate attorneys at Filippi Law Firm, P.C. review your case. Contact us today for a consultation.
