How probate works… and why you should try to avoid it
In California, when a person passes away, their assets (such as property, bank accounts, personal belongings) must be distributed. In California, if those assets are not already protected by a trust or certain other arrangements, the distribution typically happens through a Court-supervised process called probate.
WHEN IS PROBATE NECESSARY?
Probate is typically required if the deceased owns assets with a total gross value (meaning, the value does not exclude debts) of $208,850 (as of April 1, 2025). In California, simply owning a home will often place people well above the probate threshold.
HOW DOES PROBATE WORK?
While each probate case is unique, the process typically follows the same steps.
Filing the Petition: Once a person dies, either the executor (if there was a will) or a family member or interested party (if there was no will) files a Petition for Probate with the Court in the county where the deceased resided; and pays a fee (approximately $435). The Court will then appoint a representative (either an executor if named in the will or an administrator if no will). The personal representative is entitled to statutorily-mandated fees, between 4% -10% of the total estate-which amounts to thousands of dollars.
Notify Heirs and Creditors: The Court requires that all heirs, beneficiaries, and known creditors be notified about the probate proceedings. This involves sending formal notices and publishing a notice in a local newspaper. In Southern California, a standard Notice of Petition to Administer Estate generally costs between $280 and $450 for the required three consecutive weeks of publication (per LA Times.
Inventory and Appraisal: The personal representative myst compile a detailed list of all estate assets and obtain appraisals for items such as real estate, collectibles, or business holdings. These appraisals can range anywhere from $400 -$1,500 or more.
Paying Debts and Taxes: Outstanding debts (loans, credit card debts, etc); final bills (final medical expenses, funeral expenses, etc); taxes; and Administration Expenses must be paid before any distribution to heirs. The executor or administrator must submit an accounting (which costs another $465 in filing fees per LA County Superior Court).
Distribution of Assets: Once the debts, taxes, and administration expenses are paid, the remaining assets are distributed to the deceased’s heirs. If the deceased had a will, then the terms of the will dictate how the assets will be divided. If there is no will, the Court will follow something called intestate succession. California laws follow a specific hierarchy that determines who inherits a deceased person’s assets.
Closing the Estate: The Court reviews and approves the personal representative’s final accounting then formally closes the estate.
Ok, So What is so Bad About Probate?
The short answer: probate is expensive and time-consuming.
Probate can take anywhere from 9-18 months (and sometimes longer if there are disputes, complex assets, or court backlogs).
In addition to the time, probate costs thousands of dollars. There are statutory fees that must be taken from the estate to pay the representative, attorney, and executor fees. These are often thousands of dollars. This is in addition to the fees required for appraisals and Court filing fees. Probate will likely cost more than $10,000.
The good news?
There are alternatives. An estate planning attorney can help you save time and money and keep your loved ones out of probate court by creating an estate plan that fits your needs and accomplishes your goals.
If you are ready to create a plan now or just want to ask some questions our experienced team is ready to help!