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 through litigation, which can also drive up costs.
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, it can include your preferred appointment as personal representative or grant the power of appointment to someone you trust. The personal representative’s role is to ensure your will is carried out or that your estate is properly distributed 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, 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. The cost of probate varies as a percentage of your Estate, depending on its overall size. Ultimately, anyone with a probate estate of significant value will pay a percentage of that value to the personal representative.
So, why does this matter? Probate can take quite a bit out of 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.