California 101: Brief Summary of Probate Process & Procedure

WHAT IS PROBATE:

• Court supervised process of winding up a person’s affairs, gathering and inventorying assets, paying off debts, and distributing remaining assets among proper heirs

PROBATE OVERVIEW 101:

• Duration: usually lasts 9 -15 months

  • Notices/waiting periods

  • Court delays

• Costs:

  • Filing fees

  • Bond

  • Publication

  • Certification of documents

  • Probate referee (appraisal)

  • Postage

    • Usually approximately $2,000

• Fees for attorney and personal representative (executor/administrator)

  • Set by statute

    • Probate Code §10800/10810

    • Based on a % of the gross value of the estate

    • 4% of first $100K, 3% of second $100K, 2% of next $800K up to $1
      million, etc

  • Examples:

    • Decedent X owned house worth $300K and had $50K in cash

      • Fee of $10K to representative, $10K to attorney (combined fee $20K)

    • Decedent X owned house worth $1,000,000; mortgage of $500K; no cash

      • Fee of $23,000 to representative, $23,000 to attorney (combined fee $46,000)

      • House will likely need to be sold in order to pay probate cost

SUMMARY: PROBATE TAKES A LONG TIME AND IS A COSTLY PROCESS

HOW TO AVOID PROBATE:

• Place property in a Trust! (joint tenancy also)

• Benefits of a trust

  • Faster distribution to heirs – no court oversight

  • Significantly cheaper – avoid probate costs and fees

  • Determine beneficiaries yourself (will also)

  • Privacy

  • Minimize estate tax liability (if over ~$5 million)

QUESTIONS? CALL VITTAS LAW FOR A FREE CONSULTATION! 424.276.6091