The total cost of probate in California in 2023 (2024)

FAQs

What is the probate threshold in California 2023? ›

If the Decedent's “probate property” has an aggregate fair market value of less than $184,500 (in 2023), or the Decedent's property is to pass to the Decedent's surviving spouse, or where the Decedent intended to transfer his/her property to his/her revocable living trust but failed to accomplish such transfer, a “ ...

In California, statutory probate fees are based on the gross value of the estate and are as follows: 4% on the first $100,000; 3% on the next $100,000; 2% on the next $800,000; 1% on the next $9,000,000; 0.5% on the next $15,000,000.

(1) Any amounts due to the decedent for services in the Armed Forces of the United States. (2) The amount, not exceeding fifteen thousand dollars ($15,000), of salary or other compensation, including compensation for unused vacation, owing to the decedent for personal services from any employment.

And, you know, there's a few reasons why that is. The main reason is because of the attorney fees and the executor fees. Those fees and that fee structure is set by statute. Meaning that it can't be negotiated, and the fees are based off basically a percentage of the total value of the assets going through the process.

It is critical to note that California does not have an estate tax. However, there is a federal estate tax that may apply to estates of certain sizes. The federal estate tax exemption amount for 2023 is $12.92 million per individual.

In the state of California, a will does not necessarily avoid probate. If a person dies with a will, their assets will be distributed according to the terms of the will. In either case, the probate court will oversee the distribution of assets.

For decedents who died prior to April 1, 2022 the California Probate Code provides that probate estates of $166,250 or less do not need to be probated. Deaths on or after April 1, 2022 the threshold amount is $184,500.

Additionally, assets held in a living trust or those with designated beneficiaries, such as life insurance policies or retirement accounts, may not be subject to probate. However, if the total value of the assets subject to probate is more than $166,250, then the estate may need to go through probate.

Within 30 days of the decedent's death, go to the county probate clerk's office and file for probate. This is done by submitting the completed petition for probate form, the Will, and the decedent's death certificate. You must also pay the filing fee, which is currently $435.00 in California.

Probate Code §§ 13100 – 13115 provide for a summary procedure to transfer the personal property of a decedent without going through a probate action if the decedent's estate is valued at less than $150,000 and at least forty (40) days have elapsed since the death of the decedent.

What is Section 82 of the California Probate Code? ›

(a) “Trust” includes the following: (1) An express trust, private or charitable, with additions thereto, wherever and however created. (2) A trust created or determined by a judgment or decree under which the trust is to be administered in the manner of an express trust.

Formally, California Probate Code Section 50 provides: “Issue” of a person means all his or her lineal descendants of all generations, with the relationship of parent and child at each generation being determined by the definitions of child and parent.

In California, probate settles a deceased person's estate and is required in California if the estate is worth more than $184,500. It typically occurs when the deceased person died without a will, but it can occur even if the deceased person did have a will if they owned real property that is subject to probate.

California law rules that the personal representative should have completed probate within 1 year of being appointed executor, administrator, or personal representative of an estate. However, as a general rule of thumb - the probate process will take anywhere from 9-18 months, with some exceptions.

If the value exceeds $50,000, then probate will be required to transfer the asset to the Trust. In order for a Trustee to gain access to such an account or asset, you must wait 40 days following the decedent's passing, complete an affidavit procedure, and present the death certificate.

Gift/Estate Tax Exemption

The gift and estate tax exemption is the amount you can transfer during your life or at your death without incurring gift or estate tax. For 2023, the gift and estate tax exemption is $12.92 million ($25.84 million per married couple).

Like the majority of states, there is no inheritance tax in California.

Also for 2023, the IRS allows a person to give away up to $12.92 million in assets or property over the course of their lifetime and/or as part of their estate. If a gift exceeds the annual exclusion limit, the difference is simply subtracted from the person's lifetime exemption limit and no taxes are owed.

Avoiding the probate process

Joint tenancy ownership — If you have assets such as bank accounts or a home or vehicle, adding one or more names to the account or title will allow that individual (or those individuals) to take full ownership of the asset after your death without having to undergo probate.

What methods exist to avoid probate? ›

It is possible to sell real estate during the probate process without getting court approval. The Independent Administration of Estates Act allows Executors to sell real estate owned by the estate as long as they notify all beneficiaries at least 15 days before the real estate sale.

California law says the personal representative must complete probate within one year from the date of appointment, unless s/he files a federal estate tax.

The allowable fees are based on the value of the estate are as follows: 4% of the first $100,000. 3% of the next $100,000. 2% of the next $800,000.

California Probate Laws

The attorney and the administrator are each entitled to receive payment from the estate in the following percentages: 4% of the first $100,000; 3% of the next $100,000; 2% of the next $800,000; 1% of the next $9 million; and 0.5% of the next $15 million.

According to the California Probate Code section 10800, the executor receives a percentage of the estate. For example, the executor is entitled to 4% of the first $100,000 of the estate, then 3% of the next $100,000, and 2% of the next $800,000.

The estate will be frozen and inaccessible to the beneficiaries: This consequence is inevitable, as property and assets cannot be transferred without going through probate first. This is because the court needs to ensure that all debts and taxes are paid off before the estate can be distributed.

In almost every case, the costs of administering probate are paid or reimbursed by the estate. In effect, probate should cost you, the executor, nothing in California.

The typical rates are roughly 0.5 to 0.8 percent of the total bond amount required. For example, an estate valued at $20,000 or less can be covered by a bond that costs roughly $100 to $150 to purchase. In contrast, the bond fee of a $2 million estate could be $10,000 or more.

What is the amount of a small estate in California? ›

According to the California probate code §§890, 13000 - to be considered a small estate and avoid probate, the total value of all real property and personal property cannot exceed $184,500.

(1) At least 15 days before the time set for the hearing, the petitioner or the person filing the report, account, or other paper shall cause notice of the time and place of the hearing to be delivered pursuant to Section 1215 to the persons required to be given notice.

Subdivision (c) of Probate Code section 890 requires the Judicial Council to publish the inflation-adjusted dollar amounts, together with the date of the next scheduled adjustment.

In California, probate settles a deceased person's estate and is required in California if the estate is worth more than $184,500. It typically occurs when the deceased person died without a will, but it can occur even if the deceased person did have a will if they owned real property that is subject to probate.

If the deceased person has more than $166,250.00 of assets in his or her name alone and there is no surviving spouse or the assets were not left to the spouse, the answer will be yes.

If The Person Who Died Left $166,250 or LESS. If you have the legal right to inherit personal property, like money in a bank account or stocks, and the estate is worth $166,250 or less, you may NOT have to go to court. There is a simplified process you can use to transfer the property to your name.

According to the California probate code §§890, 13000 - to be considered a small estate and avoid probate, the total value of all real property and personal property cannot exceed $184,500.

13. (a) The degree of kinship or consanguinity between two persons is determined by counting the number of generations separating those persons, pursuant to subdivision (b) or (c). Each generation is called a degree.

Code § 44. Current through the 2023 Legislative Session. "Heir" means any person, including the surviving spouse, who is entitled to take property of the decedent by intestate succession under this code.

Formally, California Probate Code Section 50 provides: “Issue” of a person means all his or her lineal descendants of all generations, with the relationship of parent and child at each generation being determined by the definitions of child and parent.