Dealing with the loss of a loved one is made much harder by the obligations you’re expected to meet immediately: there’s paperwork to file and arrangements to make. Delving into the lesser-known world of probate court is yet another hurdle.
Whether you handle the probate process yourself or hire an attorney, there are costs involved that can be difficult to budget for, but this article should help outline the necessary expenses. If you are executor of another’s estate, keep your invoices and receipts for reimbursement. And if the process seems overwhelming, talk to an estate attorney who can navigate it on your behalf.
Illinois Probate: Time and Expenses
The costs of probate vary according to who does the legwork of filing documents, advertising, making court appearances, the size and complexity of the estate, and the amount of time probate takes. Most estimates range from six to 18 months and $3,500-$8,000 for an average- size estate.
Probate is necessary for all assets held outside of trusts, or which do not pass automatically to descendants through joint ownership or transfer on death clauses. The process is administered by the probate divisions of county circuit courts. However, there are ways for some to avoid the lengthy, expensive process, such as:
- Small estates, valued at $100,000 or less and which do not include real estate, are eligible for an expedited process called Summary Probate which incurs nominal costs like notary and copying fees.
- If the estate is small (under $100,00 in value) yet includes real estate, it may be eligible for Summary Administration. Summary administration requires the written approval of all heirs but is similar to summary probate in its nominal fees.
If you hire an attorney, you can expect to pay $250-$400 per hour for that person to file papers, appear in court on behalf of the estate, and follow the court’s procedures for settling the estate.
Fixed costs for probating an estate include:
- $250 to $400 for the initial court filing,
- Publishing required notices in newspapers, $100-$300,
- Notary and copying fees (nominal),
- Accounting fees to file tax returns for the estate, generally $300-$800;
- Bond fee, required to insure the estate against malfeasance (unless waived in the will), $1,500-$8,000 depending upon the value of the estate, and
- Appraisal fees for determining the value of property held by the estate, which can be $500 to thousands, depending upon the complexity such as the assessment and sale of a family owned business.
How an Estate Attorney Can Help With Probate Costs
Enlisting the help of an estate attorney can save on probate costs in the long run. A qualified, experienced attorney from Legacy & Life Law Firm will review your estate and outline a plan that allows it to bypass most or all of the probate process and associated fees. Creating a trust incurs costs but preserves your decisions about your estate and saves time. Heirs are less inclined to challenge an estate if the inheritance decisions are clearly described and legally documented.
The tools an estate attorney uses include:
- Naming beneficiaries to accounts so legal possession of the funds is automatically passed upon the owner’s death;
- Helping to write an iron-clad will that addresses all of the necessary points regarding such as naming your heirs and outlining how assets should be distributed;
- Establishing a revocable trust that continues to fund the owner’s lifestyle but transfers assets, including real estate, to heirs without probate;
- Ensuring that jointly-owned real estate, such as a primary residence, is appropriately deeded so the surviving spouse becomes sole owner upon the death of the co-owner, and
- Creating a pour-over will that moves remaining accounts and assets into the trust upon the death of the owner.
By creating a revocable trust you can pass your valuable assets to heirs smoothly and privately whereas the probate process allows anyone to examine your holdings, will, and other documentation involved.
Contact Legacy & Life Law Firm for a an estate planning consultation today.