Understanding Probate

What Is Probate?

Probate is the legal process of settling a deceased person’s estate, ensuring that assets are distributed according to their will (or state law if there is no will). This includes paying debts, taxes, and transferring property ownership to heirs or beneficiaries. If a home is part of the estate, it often must go through probate before it can be sold or transferred. Probate can be very costly and usually takes a least 9 months to go through court procedures.

How Much Does it Cost?

Probate fees for personal representatives and their attorneys are calculated as follows:

4% of first $100,000

3% of next $100,000

2% of next $800,000

1% of next $9m

0.5% of next $15 m

For example, if a home is worth $3m the personal representative and their attorney will each earn $43,000. This does not include court filing fees, real estate agent fees to sell the house, or additional extraordinary fees that could potentially occur. A general rule of thumb is to pay 4-7% of the estates total value in fees.

Avoiding Probate with Estate Planning

If you’re a homeowner looking to simplify the process for your heirs, consider these estate planning strategies:

• Establish a Living Trust: Properties in a trust can bypass probate and transfer directly to beneficiaries.

• Joint Ownership with Right of Survivorship: This allows the surviving owner to automatically inherit the property.

• Transfer-on-Death Deed (if available in your state): This enables a home to transfer to a named beneficiary upon your passing.

Need Help Navigating Probate Real Estate?

Handling probate can be challenging, but you don’t have to do it alone. As a licensed probate real estate agent, I can help guide you through the probate process, ensuring a smooth and stress-free transaction. If you have questions or need assistance with a probate property, contact me today!