Most people know that it is best to keep an estate out of probate court, but they aren’t sure why. Probate can tie up inherited assets for a long time, sometimes over a year. It’s also expensive – in some cases, court and attorney fees can take a substantial portion of the estate’s value. In this article, you will learn about the probate process and its various fees.
More About Probate
Most of the occurrences accompanying Estate Planning in Brainerd MN are clerical in nature. In most cases there is no reason to have a court proceeding, and probate court seldom calls for the adversarial capabilities of a lawyer. A probate attorney or their staff fills out a set of forms and monitors deadlines and other technicalities. In some areas, the attorney must make court appearances; in others, the entire process is done by mail.
Fees
Estate executors and attorneys are entitled to payments from your estate, as described below:
- Executor’s fees – It’s customary for the estate executor to waive their fees, especially if they stand to receive a substantial inheritance.
- Attorney’s fees – In most states, probate fees must be reasonable by court standards; in a few areas, they’re based on a portion of the estate’s value. In either case, attorney’s fees for an average-sized estate can be $10,000 or more. There are also appraisal fees, court costs and other expenses to consider.
Reducing Expenses
If your executor handles the proceedings without legal counsel (“pro se” or “in pro per”), probate fees are greatly reduced. However, that’s not practical in most situations. There are DIY kits that allow you to handle the process yourself, and there are vast online resources and practical guides. Your executor may, however, be able to hire a lawyer for a discounted price – but they’ll be unable to legally bind the lawyer to that arrangement.
Staying Out of Probate
Given the difficulties and technicalities surrounding probate, it makes sense to keep the case out of court if possible. At the least, you should consider careful Estate Planning in Brainerd MN to reduce the number of assets subject to probate. Doing so will reduce your fees and ensure that your beneficiaries receive more of their inheritance. For help in planning your estate, Contact Borden Steinbauer Krueger and Knudson P.A. today.