How Much Does Probate Cost?
Today we’re going to talk about expensive estate plans and how much they usually cost. We’re going to go through an example. In our example, we have a married couple. One person here had to go into a nursing home for about a half a year, the other person had to go into a nursing home for three years because of Alzheimer’s.
We’re in conservatorship is just these are all court proceedings that need to be done if you don’t do estate planning correctly, and this is how much those will cost you per year and usually cost about $10,000 for a conservatorship.
So you’d have that right there shows you $35,000 for conservatorship costs, but more importantly, the probate fees. What is the probate is the court process to move title from one to the other. Alright, so if you want to give it to your son you have to go through probate and fees are on a minimum basis, or we call it statutory based on the value of your gross estate. So if You’re, you have a house that’s worth a million bucks.
And there is a $900,000 loan on it, we’re getting the fees for probate is on a million dollars, not on $100,000 because it’s the gross estate. And for a $700,000 estate, I gave you an example. It’s $34,000. And if your spouse when she passes away, sorry, we’re gonna get to that in a second when your spouse passed away, so she has 1.2 million, that’s $50,000.
Sorry. So those are your minimum probate fees of $84,000 to get it from one to you and your wife’s name to the next. That’s incredibly costly and can be completely avoided with a living trust. Now, I also put here some more examples for you of statutory fees just to see just so that you get the ball rolling on what is coming your way, if you don’t plan properly.
These are unnecessary fees in my books because, again, you can just avoid all these fees by making proper estate planning, trust. So 1 million is 34 2,000,066 3,086,000 $10,226,000. All right, it could be the exact same work. It doesn’t make a difference. It’s still that much more expensive. You do the math.