When an individual passes away in California, and their estate needs to go through the probate process, certain statutory fees are typically incurred. These fees are set by California law and are based on the gross value of the estate. It's important to understand that these fees are paid from the estate's assets, not by the executor or beneficiaries personally (unless they are also beneficiaries and the estate is insolvent).
What is Included in Gross Estate Value?
The "gross estate value" for probate fee calculation purposes generally includes the fair market value of all assets subject to probate, without deducting any debts or encumbrances. This can include:
Real estate (e.g., homes, land)
Bank accounts held solely in the deceased's name
Stocks, bonds, and other investments
Personal property (e.g., vehicles, jewelry, art)
Business interests
Assets that typically avoid probate and are therefore not included in this calculation include assets held in a living trust, jointly owned assets with right of survivorship, life insurance proceeds with a named beneficiary, and retirement accounts with a named beneficiary.
Statutory Fee Schedule in California
California Probate Code Sections 10810 (for attorneys) and 10800 (for personal representatives/executors) outline the statutory fee schedule. The fees for the attorney and the personal representative are typically the same. The schedule is tiered:
4% on the first $100,000 of the gross estate value.
3% on the next $100,000 (from $100,001 to $200,000).
2% on the next $800,000 (from $200,001 to $1,000,000).
1% on the next $9,000,000 (from $1,000,001 to $10,000,000).
0.5% on the next $15,000,000 (from $10,000,001 to $25,000,000).
For estates valued over $25,000,000, the fee is determined by the court based on a reasonable amount.
It's crucial to remember that these are statutory fees. Attorneys may also petition the court for "extraordinary fees" for services beyond the ordinary scope of probate, such as litigation, selling real estate, or tax planning. These extraordinary fees are not included in this calculator.
Other Potential Probate Costs
Beyond the statutory attorney and executor fees, other costs can arise during probate, including:
Court filing fees (can range from a few hundred to over a thousand dollars).
Publication costs (required to notify creditors).
Appraisal fees for assets like real estate.
Bond premiums for the personal representative (if required by the court).
Accountant fees for preparing final tax returns.
Costs associated with selling assets (e.g., real estate commissions).
These additional costs are variable and depend on the complexity of the estate and specific actions required during probate.
Example Calculation:
Let's say an estate has a gross value of $750,000.