What is Probate?

Probate is the legal process by which a deceased person’s estate is administered and distributed to heirs or beneficiaries according to California state laws. It is overseen by the probate court to ensure that the deceased person’s assets are properly managed, debts and taxes are paid, and the remaining assets are distributed correctly.

The California probate process typically involves the following steps:

1. Filing the Petition: The probate process begins with the filing of a petition in the county where the deceased person resided. The petition is usually filed by the executor named in the deceased person’s will or by an interested party if there is no will.
2. Appointment of Executor/Administrator: The court reviews the petition and, if approved, appoints an executor (if named in the will) or an administrator (if no executor is named or willing to serve). The executor or administrator is responsible for managing the estate throughout the probate process.
3. Notice to Interested Parties: Once appointed, the executor or administrator must notify all interested parties, including heirs, beneficiaries, and creditors, about the probate proceedings. This allows them to assert their rights, make claims against the estate, or raise any objections.
4. Inventory and Appraisal: The executor or administrator is required to compile an inventory of all the assets owned by the deceased person as of their date of death. This may involve obtaining appraisals of real estate, valuables, and other significant assets to determine their fair market value.
5. Payment of Debts and Taxes: The estate’s debts, including funeral expenses, outstanding bills, and taxes, must be paid from the estate’s assets. The executor or administrator is responsible for ensuring these obligations are fulfilled. The estate may need to file final income tax returns and potentially estate tax returns, depending on the value of the estate.
6. Distribution of Assets: After all debts and taxes are paid, the remaining assets can be distributed to the heirs or beneficiaries according to the deceased person’s will or California intestate succession laws if there is no will. The court reviews the proposed distribution and issues an order approving the final distribution.
7. Closing the Estate: Once all assets have been distributed, the executor or administrator files a final accounting and a petition for the court to close the estate. The court reviews the accounting and, if satisfied, issues an order to close the probate case.

It’s important to note that the California probate process can be time-consuming, complex, and costly. Additionally, it is a public process, meaning that the details of the estate, including its assets and beneficiaries, become part of the public record.

To give an idea of the costs of probate in California, in California statutory fees for probate are determined by the California Probate Code, specifically Sections 10800 to 10814. These fees are based on a percentage of the total value of the assets in the probate estate.

Here’s an overview of the statutory fees structure for probate in California:

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

For estates exceeding $25 million, the court has the discretion to determine the appropriate fee.

It’s important to note that these fees are calculated based on the gross value of the estate, which means the total value of the assets before any debts or mortgages are subtracted. Additionally, these fees are subject to adjustment by the court if the statutory fees are deemed excessive or inadequate based on the circumstances of the case.

It’s also worth mentioning that these statutory fees are separate from any attorney costs or other expenses that may be incurred during the probate process. The fees are typically paid to the executor or administrator of the estate, who is entitled to compensation for their services.

For example, the average home value in California is $750,000, so without any other assets (bank accounts, valuables, vehicles, etc.) the cost for probate will be $18,000 plus attorney costs.

To avoid probate, individuals often employ estate planning strategies such as establishing living trusts, joint ownership, or designating beneficiaries for certain assets. These methods allow assets to pass directly to beneficiaries without going through the probate process, saving time, expenses, and maintaining privacy.

If you are in the unfortunate position that probate is needed, we offer packages that will save you thousands, if not tens of thousands, of dollars.