Probate fees: What’s the cost of probate?

Settling someone’s estate and distributing their assets isn’t as simple as reading their last will and testament and following its instructions. If you’ve been chosen to manage a loved one’s affairs after they’ve passed away, you’ll have to go through a process called probate.

During the probate process, you’ll meet with a local court that will help you distribute the assets from the estate to the correct people. On average, probate takes several months to complete. During that time, there are many different probate costs you may face, from attorney fees to paying for official documents.

What is probate?

Probate is the court-supervised process of distributing someone’s assets according to their last will and testament. During probate, the probate court makes sure the person’s will is valid and appoints an executor or administrator to carry out their wishes and settle their estate. This process can take several months to several years, depending on the size and complexity of the estate and the local court’s caseload.

The cost of probate

There are several costs associated with the probate process, which can range from a few dollars to hundreds or even thousands of dollars. The actual cost of probate depends on:

• State laws and local requirements
• The size or complexity of the estate
• Whether or not there’s a will
• If the will is deemed invalid or is contested
• If you hire outside experts, like an estate attorney or accountant

Common probate fees include:

Court fees

Court fees are what the court charges for its services. Specific amounts vary from state to state.

Common probate court fees include:

• Filing fee: You’ll have to petition the court to start the probate process, which includes paying a filing fee. Depending on the state where the deceased lived and the size of their estate, this fee could range from a few hundred dollars to over a thousand dollars.
• Notification fee: Notifying beneficiaries or other relevant parties about the estate can come at a cost. This can include sending certified mail or making a public announcement in the deceased’s local newspaper.
• Document fees: You can’t start your duties until the court authorizes you to act on behalf of the estate. They do this by issuing official certificates, known as letters of testamentary (if you were named executor in a will) or letters of administration (if you’re a court-appointed administrator). These legal documents give you access to the deceased’s assets, like bank accounts or real estate property. Some institutions will accept copies of these documents, but others may require originals before they give you access to assets. While each original certificate usually costs a few dollars, you may want to consider purchasing several for this purpose.

Probate attorney fees

While it’s often possible to go through probate without an attorney, you may decide to hire one if the estate is large or more complicated. Some states even require you to use an estate attorney for the probate process, depending on the size of the estate.

The cost of a probate attorney varies based on state laws, the type and scope of the attorney’s services, and the size and complexity of the deceased’s estate. These fees are typically paid by the estate itself. But if the estate can’t cover the cost of an attorney, the balance may fall on you, as executor or administrator, to pay out of pocket.

Accounting fees

In many cases, you’ll be able to handle the finances of a simple estate on your own, including ensuring funds from real estate property or personal bank accounts are balanced and accounted for.

But for more complicated estates, you may want to hire an accountant to oversee the estate’s finances. They can help prepare and file estate tax returns, manage stocks or other investment assets (like bonds or certificates of deposit), or help manage cryptocurrency.

Accounting fees depend on the overall estate value, the assets the accountant manages, and scope of services they provide.  

Probate bond fees

A probate bond is a type of bond required when someone is acting on behalf of someone else’s estate. You can think of probate bonds like insurance against the executor or administrator, to ensure they carry out their duties according to the deceased’s will and local laws.

Bond fees are determined by the probate judge and are often based on state law and the size of the estate.

Executor fees

If you’re appointed to manage an estate, you may be eligible for a reasonable fee for your time and effort.

While the deceased may have set a specific fee for you in their will, the state they lived in may also have a say. Executors and administrators receive a flat rate in some states, while other states base compensation on the size and scope of the estate.

Talk to the local court or an estate attorney if you have questions about executor fees and how much you might be entitled to.  

Other potential probate fees

Based on the estate you’re managing, you may face other fees during the probate process, like:

• Shipping or postage fees for sending notifications or mailing documents
• Cost of appraisals for real estate or other property
• Business valuation fees
• Notary fees
• Insurance fees
• Storage facility fees
• Income taxes generated by estate assets

If the estate involves property in multiple states, you may also have to go through the ancillary probate process. Additional costs for this process will depend on the types of property involved and state laws.

Who pays probate fees?

So, where does the money to cover the cost of probate come from? The answer is simple: the estate pays for probate fees.

Before estate funds are distributed to the deceased’s beneficiaries, they’re used to cover any outstanding debts and pay for things like taxes, professional services, and miscellaneous fees. If the estate doesn’t have enough money to cover these costs, estate assets (like a vehicle or vacation home) may be sold to pay the remaining balance.

If the deceased had a will, they might have listed which assets they want sold to cover any additional expenses. If they didn’t have a will, the administrator and the courts must decide which assets to sell.

Reduce probate costs by having a will

The probate process can be long, expensive, and emotionally draining. But it’s a necessary part of managing an estate — and having a last will and testament can help streamline the process and avoid unnecessary costs.

You can ease the financial burden of probate for your loved ones by having a will. With FreeWill’s do-it-yourself will-making tool, you can name an executor for your estate, determine who you want to receive your assets, give instructions for which property should be sold to cover probate fees, and so much more. You can create peace of mind and a brand new will in as little as 20 minutes — completely free.