The Cost Of Probate
Probate is the legal process that transfers the estate of a deceased person to their heirs. Often, the cost of probate is deducted from the estate. An experienced estate planning and probate lawyer from Fleurinord Law, PLLC can help you with your estate plan and attempt to mitigate the cost of probate. Contact our dedicated and compassionate estate planning attorneys today at (888) 904-2297 for appointments in either Florida and Texas.
A Brief Overview of the Probate Process
Probate involves legally processing the assets of a recently deceased person and paying any outstanding debts. Everything someone owns, from jewelry, bank accounts, real estate, or cars, comprises an estate after a person passes away. If you create a Last Will and Testament (will), the probate court will use this estate planning document to attempt to follow your wishes.
If someone dies intestate or without a will, they still have an estate, and it still must go through probate. Texas Estates Code Sec. 455.001 requires that the probate judge appoints an estate administrator whose duties are very similar to that of the executor of a will, as does Florida Probate Code Chapter 733.
The Role of the Estate Administrator
An estate administrator receives payment for processing the estate, which can vary. In Texas, it is usually a 5% commission; in Florida, it ranges from 1.5% to 2.5% of the estate’s value. This is part of the cost of probate; any fees for processing an estate come from the estate itself. Sometimes, an administrator may sell estate assets to cover these costs.
The estate administrator will first inventory the estate and assign value to all assets, then notifiy any interested parties, both heirs and creditors. Creditors have a certain amount of time, four months in Texas and 30 days in Florida, to submit a claim. The administrator verifies each claim and pays legitimate ones out of the estate, then disperses the assets according to either the will or the state’s succession laws.
Costs Associated with Probate
The cost and expense of probating an estate vary depending on the size of the estate and how complex it is, but for the most part, each estate has the same types of expenses, and the estate itself is responsible for paying them.
Expect to have to pay for the following to complete the probate process:
- Attorney fees – if you hire a Florida or Texas probate lawyer to assist with processing the estate
- Accountant fees – each estate administrator must provide an accounting of the estate to close probate and file taxes for the estate and you may have accountant fees if you need an expert to assist with these financial records
- Executor bond fees – an optional form of insurance for the heirs to ensure the executor manages the estate properly
- Court filing fees
- Out-of-state probate costs if assets are held in multiple states
- Notice fees and publication fees for advising creditors and other interested parties
- Translation fees for documents not in English
These may not be the only probate costs. For example, if the will is challenged, the estate may pay additional costs to settle the dispute. An experienced estate planning attorney from Fleurinord Law, PLLC can help you find ways to mitigate the cost of administering an estate and ensure all the correct legal filings are complete.
The Cost of Probate in Texas
The cost of probating an estate in Texas if the deceased left a will includes:
- Attorney’s fees: variable
- Court costs: $380
- Estate processing fees: varies depending on what is required to close the estate
However, if someone dies intestate, then the process is more complicated and thus costlier. Without a will, there is a higher chance that the potential legal heirs may not agree on how to settle the estate, so each one may file an application to determine heirship. Costs can continue to increase depending on the number of people involved.
The Cost of Probate in Florida
Florida probate rules require a Florida probate attorney to process a probate case, therefore attorney’s fees will be one of the costs of probate in this state. Filing fees, accountant fees, and publication expenses will also be part of the probate cost.
Florida law, Section 733.6171(3) of the Florida Statutes stipulates that the probate lawyer fees should be “reasonable.” If the estate beneficiaries find the attorney fees unreasonable, then they may petition the probate court to reduce them.
Ways To Reduce the Cost of Probate
Proper estate planning can reduce probate costs and ensure the process goes quickly and smoothly. In fact, it is possible to create a comprehensive estate plan that avoids probate altogether. In other cases, an estate plan that is drafted and executed properly will directly explain how financial assets should be distributed and reduce the cost of probate. Additionally executors who understand their duties and are comfortable with their obligations can usually process an estate faster than one who does not.
Do You Need Help From Experienced Estate Planning and Probate Lawyers?
If you have found yourself in the role of an estate administrator or the executor of a will and are unsure where to start, we can help. If you are interested in completely avoiding the cost of probate and creating an estate plan that circumvents this legal process, it is also possible. The legal team at Fleurinord Law, PLLC can provide legal guidance and ensure your legal and financial rights remain protected. Contact our experienced and compassionate legal team today at 888-904-2297 to schedule an appointment in Florida or Texas.