When someone passes away, their estate—their money, property, and belongings—needs to be taken care of. This process is called probate. Probate can sometimes be confusing and expensive, but knowing about it can help you make smart choices for your estate plan.
What is Probate?
Probate is the legal process that happens after someone dies. During probate, the court makes sure a person's debts are paid, and the remaining assets are given to the right people.
What Costs are Involved in Probate?
Here are some of the costs you might expect with probate:
- Court Fees: There are fees to pay to the probate court, and these can vary depending on the county and the type of action needed. For example, Franklin County, Ohio recommends an initial deposit of $250 to begin the process.
- Attorney Fees: Many people hire a lawyer to help them with probate. The lawyer's fees can be a big part of the costs, but they help make sure everything is done correctly.
- Executor Fees: The person who takes care of the estate, called the executor, might get paid for their work. In Ohio, executor fees are set by state law and are based on a percentage of the probate assets: For example, executor fees are 4% of the first $100,000 of probate assets, 3% on the next $300,000, and 2% on the assets above $400,000. Additionally, executors may collect additional fees for non-probate assets and real estate.
- Appraisal Costs: Sometimes, the estate's assets, like houses or investments, need to be valued. This can require a professional appraisal, which adds to the costs.
- Debts and Taxes: Any debts or taxes that the person who died owed will need to be paid from the estate.
- Other Costs: There can be other expenses, like filing documents or other administrative tasks, that add up during probate.
How Can You Avoid or Minimize Probate Costs?
You can avoid or reduce probate costs by planning ahead. One way is to use a Revocable Living Trust. A trust allows your assets to go directly to your loved ones without going through probate, which can save time and money. Another way is to use Transfer on Death (TOD) and Pay on Death (POD) designations to skip the probate process.
Want to Learn More?
If you're interested in learning more about how to avoid the costs of probate and your options, consider booking a Peace of Mind Planning Session with us. During this Zoom meeting with Attorney Sinem Halterman, we'll listen to your goals, explain your options, and go over our process and pricing. If we're a good fit, we can discuss the next steps together.
Book your Peace of Mind Planning Session with Sinem Halterman to learn more.
The information provided in this blog is for educational purposes only and does not constitute legal advice. Every situation is unique, and laws may vary based on jurisdiction. Please consult a qualified attorney for personalized advice regarding your specific circumstances.
