When it comes to the financial approach of probate, there are things you’ll want to know. Probate can become lengthy if people contest it by suing, which can also drive up the cost.
What when your Estate goes to Probate? Your Estate will be opened in court. If you pass without a will, then the court appoints the personal representative. If you have a will, then your will can include your preferred appointment as the personable representative or the give power of appointment to someone you trust. The personal representative’s role is to make sure your will is carried out or that your estate is distributed properly if you die without a will.
Then, that personal representative will receive a designated or statutory percentage of everything in your probate estate in order to administer your estate. There’s a presumed reasonable statutory percentage, but your will can change that percentage based on the testator’s wishes. If you do not have a Will, then you lose the opportunity to reduce the amount of your estate that but the judge may ultimately decide whether that amount is reasonable.
The statutory cost starts at a flat rate for smaller Estates and grows with the size of the estate, until it hits $100,000 or more of all probate assets. Once at $100,000 gross probate estate, the cost for probate changes to a percentage of your Estate depending upon its overall size. Ultimately, anyone with a probate estate worth over $100,000 total will pay a percentage of that to the personal representative.
So, why does this matter? Probate can take quite a bit out your overall estate that you want to go to your loved ones. It is an expensive process, even if it’s not contested, and planning ahead can help to reduce the costs ultimately passed on to your loved ones, so you can leave your family with as much as possible. Contact us today to learn more.
