The Cost of Probate in Los Angeles, CA.
Probate is the process to transfer title of property from the person who died to his or her beneficiaries.
If the person died with a will, the probate court determines if the will is valid, listens to any objections to the will, orders that creditors are notified and paid ans assures that property remaining is distributed in accordance with the terms will. If the will nominates an executor, the court appoints that person assuming there are no objections.If a person dies and does not have a will the probate court selects an administrator to handle claims against the estate, pay creditors and distribute all remaining property.
The difference between dying with and without a will is that without a will (intestate) the estate is distributed to beneficiaries according to the distribution plan established by state law; having a will (testate) the estate (after debts, taxes and costs of administration) is distributed according to the instructions in the will.
In California, the cost of probate is based on a formula determined by the value of the estate. Compensation for serving as personal representative and attorney’s compensation for serving as probate attorney is set by the court near the end of the administration of the estate. The California Probate Code has a statutory compensation schedule for computing compensation payable to estate representatives and to attorneys in connection with “ordinary services” performed during estate administration. The compensation schedule, based on the size of the estate is:
4% on the first $100,000
3% on the next $100,000
2% on the next $800,000
1% on the next $9,000,000
1/2% on the next $15,000,000
“reasonable” compensation on the excess over $25,000,000
The probate process
can tie up a property and all other estate assets for months and sometimes even more than a year.
