Many clients do not think about probate until they have already lost a loved one. Even then, they may mistakenly think that probate is a quick, simple formality.

Once they learn that probate can be expensive, stressful, and time-consuming, many clients have the same question: How much does it cost?

What Factors Influence Probate Costs and Estate Fees in California?

Logically, it might seem like probate costs should be based on the complexity of the estate and the time it takes to complete the process. Unfortunately, that is not the case.

When it comes to probate cost, California courts can be confusing. The value of the estate is one of the most significant factors determining probate costs, but there are a few other influences to be aware of:

• Court and administrative fees in the county where your loved one died
• Whether “non-routine” services (like selling real estate or managing businesses) were required
• Whether the probate process included will contests and/or family disputes

It is important to understand that California’s statutory probate fees are based on the gross estate value. The gross estate value consists of the estate’s value before outstanding debts are paid.

Understanding Statutory Fees in California Probate

Instead of allowing people to work out their own payment arrangements with personal representatives, California sets legal standards for statutory fees. These standards are outlined in the California Probate Code.

The deceased’s personal representative and the attorney representing that person are each entitled to the following:

• 4% for the first $100,000 of the estate
• 3% for the next $100,000
• 2% for the next $800,000
• 1% for the next $9 million
• 0.5% for the next $15 million

How Gross Estate Value Affects Probate Costs

If the gross value of the estate exceeds $25 million, the court may determine appropriate compensation for the personal representative and their attorney.

For example, imagine a decedent leaves behind an estate with a gross value of $1 million. Four percent of $100,000 is $4,000, 3% of $100,000 is $3,000, and 2% of $800,000 is $16,000.

This means that their personal representative and their attorney would each be entitled to $23,000 under California Probate Code § 10800 and § 10810.

How Filing Fees Add to Probate Costs

Statutory probate fees are not the only fees an estate may be liable for. Seemingly small administrative fees including but not limited to the following items can add up:

• Filing fees to open the case in probate court
• The cost of publishing required notices to creditors in local newspapers
• Probate referee (court-appointed professional appraiser) fee

The exact dollar amount of each of these fees can vary significantly based on location, the value of the estate, and other factors. However, their total cost typically exceeds $1,000.

When Extraordinary Fees Enter the Equation

If the court determines that the decedent’s personal representative or their attorney has performed “extraordinary services” over the course of their duties, it may award them additional compensation.

These are some examples of extraordinary services by a personal representative outlined in California Rule of Court 7.703:

• Preparing tax returns
• Selling, leasing, or foreclosing on real estate or other property
• Managing the decedent’s business if necessary
• Out-of-state property transactions

These are a few examples of extraordinary services by the personal representative’s attorney:

• Undertaking litigation to preserve the estate and its assets
• Successfully defending the decedent’s will after it was contested in probate
• Working to secure a loan for the estate to pay its debts
• Making extraordinary efforts to locate estate assets

Extraordinary fees are the reason that disputes and complex asset situations can drive up the cost of probate litigation. If an heir challenges the will and the decedent’s personal representative must defend it, the estate will generally foot the legal bill.

Likewise, both the personal representative and their attorney may receive extra compensation if they have to spend a significant amount of time locating or managing estate assets.

California’s Simplified Process for Smaller Estates

Smaller estates may be able to avoid some of these costs. In 2024, Assembly Bill No. 2016 (AB 2016) raised the small estate threshold for primary residences to $750,000. If the deceased’s primary residence is worth less than $750,000 in California, an heir may be able to claim it via a court petition.

For personal property under an inflation-adjusted threshold, heirs may submit small estate affidavits to legally claim assets left to them.

Can You Avoid the Probate Process?

Probate is time-consuming, stressful, expensive, and public. Fortunately, if you’re concerned about probate cost, California offers a few ways to avoid it.

Some Assets Do Not Go Through Probate

When someone dies, leaving only a will (and no trusts), their estate generally must go through probate. Even if this happens, there are still some assets that bypass the probate process entirely:

• Payable on death (POD) or transfer on death (TOD) accounts
• Life insurance policies with named beneficiaries
• Retirement accounts with named beneficiaries

Assets held in joint tenancy with right of survivorship (JTWROS) can also bypass probate. With JTWROS, an asset (usually a home or a bank account) is owned by two or more people. When one owner dies, the asset automatically passes to the other person(s).

Revocable Trusts May Help Keep Assets Out of Probate

For assets that ordinarily must pass through probate, creating a revocable trust may be beneficial. A trust is a legal entity created to “hold” assets, and placing assets into a trust helps to avoid the probate process.

When you create a trust, you select one or more trustees to distribute assets after your death. Instead of waiting 12-18 months (or longer) for the probate process to conclude, your heirs may receive their assets soon after your death.

With the Right Planning, You Might Spare Your Loved Ones the Pain of Probate

The financial and emotional cost of the probate process can be difficult to navigate. When your loved ones are already grieving your loss, the challenges and frustrations of probate can simply feel overwhelming.

Just by taking the time to craft a thoughtful estate plan now, you will be giving your loved ones an incredible gift. KJMLAW Partners has served California families for more than 30 years, and we look forward to assisting you, too. Contact us today by calling (626)*******80 to schedule an initial consultation.