WHAT IS THE BENEFIT TO AVOIDING PROBATE? (CA only)
What part of my estate would be subject to probate?
NO TRUST: Titled assets in your name with gross value over the amount determined by your state's laws. See chart below for additional details.
TRUST: None (for any property held in trust)
How long will it take to settle the estate?
NO TRUST: The duration can be difficult to predict and varies by state (see chart), but a good estimate is 1-2 years for a medium-sized estate and longer for larger estates. During this time, your assets may be frozen (see below) and nothing can be distributed or sold without court approval. Delays can cause forced sale of small business or professional practice and can reduce inheritance for all beneficiaries.
TRUST: Trust administration can take more than a year, but most distributions of funds can take place much earlier; assets can be sold immediately
How much will it cost to settle the estate?
NO TRUST: Up to 10% of the gross value of the estate in attorney and executor fees, court costs and other expenses. See the chart below for information specific to your state. For example, in California, probate fees on a house alone (worth $500,000) would come to approximately $30,000.
. TRUST: The fee to prepare a well-crafted estate plan is generally $2,000-$3,000. Administration of the estate by an attorney after death ranges between $1,500-$5,000.
Aside from financial considerations, what are some other drawbacks of the probate process?
NO TRUST: Costly and/or time-consuming process through the court system to settle the estate. Greater likelihood of relatives to contest or have conflict over the wishes of the deceased. Complicated, multi-state probate for any clients who may own or inherit property in a state other than their own.
TRUST: Much less costly process that can be handled out of court smoothly and simply with the help of your attorney. You will have a knowledgeable advocate for any unforeseen issues that may arise.
States
What is subject to probate?
How much can probate cost?
Arizona
$100,000 equity in real property; or
$75,000 total assets; or
$5,000 or more in wages due
10% of Gross (total) value of estate
$50,000 gross value of real property; or
$150,000 total assets (gross value NOT equity)
10% of Gross (total) value of estate
California
ANY real estate; or
$60,000 total assets (gross value NOT equity)
Hourly rate plus costs, usually starting at $6,000
Colorado
