Understanding California Probate and Probate Alternatives
What does probate mean? California Probate is a legal proceeding required to settle a deceased person’s estate, paying all debts of the decedent, and distributing the property to the heirs and beneficiaries. When a Living Trust holds the title to some of the decedent’s property, however, that property can pass to the beneficiaries without going through probate. A court probate of a will, depending on the size of the estate, can be expensive and time-consuming. The probate process varies dramatically between states, but can be completely avoided with proper estate planning.
Probate in California
Previously, all estates had to be formally brought before a judge before assets could be distributed to the beneficiaries. In more recent years, however, the courts have simplified the California probate process and now there are several ways to transfer property at death. Some of these procedures do not even require formal court proceedings or may be able to be handled through a more simplified probate proceeding. The term “probate” is often used loosely to describe any process where an estate is settled and distributed.
If you want to file a probate in California, the probate law does not require you to hire an attorney to settle the estate. The average simple estate can often be settled using the guidelines of self-help materials and the services of a registered legal document assistant to prepare your probate paperwork. This video testimony is from a customer who used our California probate services. Keep in mind, however, that some complications which may need special knowledge or handling by an attorney. They are:
- Ambiguities in a will
- Contested claims against the estate
- Estates that have more debts than assets
- Estates that have unresolved claims
- 4% of the first $100,000 of the gross value of the probate estate
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9,000,000
- 0.5% of the next $15,000,000 and
- a “reasonable amount” as determined by the court for everything above $25,000,000
For example, in a probate estate with a gross value of $150,000, the probate attorney may collect $5,500. If the estate was valued at $400,000, fees would be $13,000. The value of the estate is not reduced by any mortgages or debt which may exist. If you had an estate with real property worth $600,000 with a $500,000 mortgage, the statutory probate attorney’s fees would be $15,000 based on the $600,000 gross value of the estate, not the $100,000 of decedent’s equity.
Probate proceedings can be categorized into two different types: simplified probate procedures and regular probate. If an estate does not qualify to file under one of the simplified procedures, the estate will need to be administered through a full probate. Click here to learn about options for simplified probate proceedings.