November 11th, 2008 by scott shuttleworth
Probate carries with it significant costs, payable primarily to the attorney(s) and executor(s) who administer the estate . The attorney and executor fees are set by California statute and are based on the gross, not net value, of the probatable estate (e.g. You own a home with $500,000 but with a $490,000 loan, fees are based on $500,000 not $10,000).
The statutory attorneys fees are as follows:
4% of the first 100,000
3% of the next 100,000
2% of the next $800,000
1% of the next $9,000,000
.5% of the next $15,000,000
The executor gets an identical amount.
“Extraordinary Fees”, over and above the statutory fees, may be awarded for “extraordinary” services. Typically, this involves unusually complicated estates or litigation.
By way of example, if an estate valued at $500,000 was probated (a typical value for a California home), the minimum fees would be $13,000 for attorneys fees, $13,000 for executors fees, court filing fees (currently $320.00) and probate referee appraisal fees.
See Probate Code Sections 10800-10805, 10810-10814
If the liquid assets of the estate are insufficient to pay administrative costs (executors fees, attorneys fees, costs of administration), then assets must be sold in order to pay the costs of administration and/or creditors to the extent the estate can pay them. Administrative costs of probating the estate (court fees, executors fees, attorney’s [...]
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The Personal Representative give notice to those “reasonably ascertainable creditors” and determine the valid creditors of the estate. Generally speaking, a creditor of an estate has the latter of 4 months from the date “Letters” are issued by the court granting authority to the Personal Representative to act on behalf of the Estate or [...]
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A bond is insurance against the malfeasance or neglect of a Personal Representative resulting in a loss to the estate up to the maximum amount of the bond. Bonds are required unless the will expressly waives bond or all beneficiaries of the estate waive bond.
The bond amount will be based upon the net value of [...]
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The Probate process in California is designed to primarily accomplish the following:
Open Probate in Proper Jurisdiction
Establish Last Valid Will of Decedent, if any
Establish and Empower Personal Representative
Establish Bond Amount if Necessary
Determine Probatable Assets of the Decedent
Determine Valid Debts of Decedent
Liquidate Portions of Estate if Necessary to Pay Costs of Administration and Creditors All or Portion [...]
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The Petitioner will usually request to be appointed either executor or administrator of the estate (“Personal Representative”) and that he or she be empowered with certain rights. Typically, these requests are for either full or limited authority to administer the estate under the Independent Administration of Estates Act (“IAEA”). Full IAEA authority means they are [...]
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The person filing the Petition for Probate (“Petitioner”) will request that a will be validated or, if no will, that the estate be administered under the rules for intestate succession (the rules of who gets what when there is no will).
The Probate Petition will typically have a copy of the will they propose to be [...]
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Typically, a California probate takes place in the county where the decedent resided at death by the filing of a Petition for Probate (“Probate Petition”) by a family member. However, where there is real property in a state other than where the decedent resided, an additional ancillary probate is opened in the other state where [...]
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For over 10 years, the Shuttleworth Law Firm has assisted countless clients by preparing individual estate plans tailored after consideration of the unique circumstances of each client. For example, what is a good approach for a married couple with children from only that marriage could be entirely inappropriate for clients with multiple marriages.
Michael S. Shuttleworth [...]
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An AB trust is a trust that divides the trust property of each spouse into two shares at the death of the first to die – an “A” share and a “B” share.
The survivor’s share, the A share, typically consists of the surviving spouses’ interest in the community property and all of his or her [...]
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