The Real Cost of Probate in California: Fees, Delays, and Hidden Expenses

For families who have just lost a loved one, probate often comes as an unpleasant surprise. Not only is the process lengthy and complicated, but the costs can be far higher than most people expect. California has some of the highest probate expenses in the country, and without proper planning, much of an estate’s value can be consumed by fees and court costs before beneficiaries see a single dollar.

Understanding how probate works, and what drives up its price tag, is the first step to protecting your family’s legacy. Let’s take a closer look at what probate is, the typical fees you’ll face in California, and the hidden expenses that often catch families off guard.

What Probate Is and Why It Happens

Probate is the court-supervised process of validating a will, settling debts, and distributing assets after someone passes away. If the person had a will, the court ensures its validity and oversees the executor’s actions. If there was no will, California’s intestacy laws determine who inherits.

The purpose of probate is to create an orderly transfer of assets, but in reality, it often becomes a drawn-out, expensive process. Why? Because probate involves court oversight, attorney involvement, multiple filings, mandatory notices, and strict timelines—all of which come with costs.

While probate is designed to protect heirs and creditors, it often results in reduced inheritances and significant delays. That’s why many families aim to avoid it altogether.

Typical Probate Fees in California

Probate in California is particularly costly because attorney and executor fees are set by statute. These are calculated as a percentage of the gross value of the estate, not the net value after debts or mortgages are subtracted. This means that a home worth $800,000 with a $500,000 mortgage is still treated as an $800,000 asset for fee purposes.

Here’s what families can expect in statutory fees:

• 4% of the first $100,000 of the estate’s value.
• 3% of the next $100,000.
• 2% of the next $800,000.
• 1% of the next $9 million.
• 0.5% of the next $15 million.
  

Both the executor and the attorney are entitled to these amounts, effectively doubling the cost. On an estate valued at $1 million, statutory fees alone can reach $46,000, before court costs, appraisal fees, and other expenses are factored in.

For families, this often feels like money vanishing into thin air, especially when a living trust or other planning tools could have reduced or eliminated the need for probate entirely.

Court Costs, Filing Fees, and Attorney Fees Explained

Beyond statutory percentages, there are numerous additional expenses:

1. Court Filing Fees: Each petition filed with the probate court carries a filing fee, which typically ranges from $435 to $650 in California. Multiple petitions may be required throughout the process.
2. Publication Fees: Probate law requires that notice of the proceedings be published in a local newspaper, often costing several hundred dollars.
3. Probate Referee Fees: Estates must be appraised by a court-appointed referee, who charges a percentage of the estate’s value (usually 0.1% plus expenses).
4. Bond Premiums: If the will does not waive bond, executors may need to purchase a bond to insure their performance, adding yet another recurring cost.
5. Extraordinary Attorney Fees: If disputes arise, if real estate must be sold, or if litigation is involved, attorneys can petition for additional “extraordinary” fees, which may be billed hourly.
   
   

When you add these to statutory fees, the total cost of probate can quickly balloon. It’s not unusual for expenses to consume 5% or more of the estate’s total value.

How Delays Drain Family Resources and Increase Stress

Probate is not just costly, it’s also time-consuming. In California, the average probate case takes 12 to 18 months to complete, and contested estates can drag on for years. During this time:

• Beneficiaries cannot access their inheritance until the court approves distributions.
• Property may sit vacant, requiring ongoing maintenance, mortgage payments, and insurance.
• Family disputes may escalate, creating further legal complications.

Consider this scenario: A widow passes away, leaving her home and modest savings to her two children. The estate is valued at $800,000. Between attorney fees, executor fees, and court costs, nearly $40,000 is lost to probate. On top of that, the children wait more than a year before receiving their inheritance, during which they must cover property taxes, utilities, and upkeep for the home.

The financial cost is significant, but the emotional toll of waiting and uncertainty often weighs even heavier. Families in grief find themselves stuck in a frustrating process that feels endless.

Hidden Expenses Families Rarely Anticipate

On top of statutory and court-related costs, there are often hidden expenses that catch families by surprise. These may include:

1. Property Management Costs: If the estate includes rental properties, someone must manage tenants, repairs, and income reporting until probate closes.
2. Tax Preparation Fees: Estates often require final income tax returns, fiduciary tax returns, or estate tax filings, all of which come with CPA fees.
3. Real Estate Sales Costs: If property must be sold, real estate commissions, closing costs, and marketing expenses can significantly cut into proceeds.
4. Lost Investment Growth: While assets sit frozen in probate, beneficiaries miss out on potential investment gains or opportunities to reinvest.
5. Family Travel Costs: Heirs who live out of state may need to travel repeatedly for hearings, signatures, or property management.
   
   

These hidden costs can easily add thousands of dollars more to an already expensive process.

Conclusion: How to Avoid the High Cost of Probate in California

Probate in California is expensive, time-consuming, and emotionally draining. Between statutory attorney and executor fees, court costs, delays, and hidden expenses, families often lose far more than they anticipated.

The good news is that probate is largely avoidable with proper estate planning. Tools such as revocable living trusts, beneficiary designations, and joint ownership structures can help transfer assets outside of probate, preserving more of the estate for loved ones.

Planning ahead offers protection, peace of mind, and the assurance that your legacy will pass to the next generation with minimal loss. Make sure you stay protected and book a free call with Amy Hsiao today.