When someone passes away, their estate (their money, property and belongings) has to be taken care of. That process is called probate. It can be confusing and expensive, but understanding it helps you make smart choices in your own estate plan.
What is probate?
Probate is the legal process for handling personal and real property following a death. During probate, the court makes sure the person’s debts are paid and distributes the remaining assets according to the state’s statute on descent and distribution.
What costs are involved?
- Court fees. Fees paid to the probate court vary by county and the type of action. Franklin County, for example, requires an initial deposit of $250 to begin the process.
- Attorney fees. Many people find it necessary to hire a lawyer to guide them through the complex process of probate. Legal fees can be significant, , but legal counsel will help make sure everything is done correctly.
- Executor fees. The executor, the person who manages the estate, may be paid for that work. In Ohio, executor fees are set by state law as a percentage of probate assets: 4% of the first $100,000, 3% of the next $300,000, and 2% of assets above $400,000. Executors may also collect additional fees for non-probate assets and real estate.
- Appraisal costs. Houses, investments, and other assets sometimes need a professional valuation.
- Debts and taxes. Debts and taxes owed by the person who died generally must be paid from the estate. Some debts may not need to be paid, so talk with an attorney before deciding what to pay and when.
- Other costs. Filing documents and other administrative tasks add up during probate.
- Time. Probate cases can often take six months to a year to fully resolve.
How can you avoid or minimize probate costs?
Planning ahead is the most effective way. A Revocable Living Trust lets your assets pass directly to your loved ones without going through probate, which can save significant time and money. Transfer on Death (TOD) and Pay on Death (POD) designations can also let certain assets skip probate.
Want to learn more?
Book a Peace of Mind Planning Session with Attorney Sinem Halterman. We’ll listen to your goals, explain your options, and walk through our process and pricing. If we’re a good fit, we’ll discuss next steps together.
DISCLAIMER: The blog published by Northwest Law is available for informational purposes only and is not considered legal advice on any subject matter. By viewing blog posts, the reader understands there is no attorney-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation.