Probate is the court-supervised process by which a deceased individual's estate is identified, managed, and distributed. It involves validating the will (if applicable), collecting and inventorying the deceased’s assets and liabilities, paying taxes and debts, and ultimately distributing the remainder of the estate to the beneficiaries or heirs. Most people don’t handle this complex process alone, and rely on the expertise of an estate planning attorney to help. Legal firms usually follow a reasonable compensation structure for these services, but do you know how much probate can cost? Here’s more information that helps clarify the process.
How Much Can Probate Cost in Florida?
Section 733.6171 of the Florida Statutes provides the compensation structure guidelines for an attorney representing an estate in probate. While it’s not mandatory that these fees be followed (the parties can agree on higher or lower fee structure) many attorneys follow the rate set forth in the statute. The size and complexity of the estate dictates the terms, but a typical example of attorney fees under these guidelines, such as an estate with $500,000 in assets, would amount to $15,000: $3,000 for the first $100,000 and $12,000 for the remainder.
Section 733.6171(3) provides an additional breakout:
(3) Subject to subsection (2), compensation for ordinary services of attorneys in a formal estate administration is presumed to be reasonable if based on the compensable value of the estate, which is the inventory value of the probate estate assets and the income earned by the estate during the administration as provided in the following schedule:
- Approximately $1,500 for estates having a value of $40,000 or less.
- An additional $750 for estates having a value of more than $40,000 and not exceeding $70,000.
- An additional $750 for estates having a value of more than $70,000 and not exceeding $100,000.
- For estates having a value in excess of $100,000, at the rate of 3 percent on the next $900,000.
- At the rate of 2.5 percent for all above $1 million and not exceeding $3 million.
- At the rate of 2 percent for all above $3 million and not exceeding $5 million.
- At the rate of 1.5 percent for all above $5 million and not exceeding $10 million.
- At the rate of 1 percent for all above $10 million.
Keep in mind, many factors can alter how much probate costs. Known as extraordinary service under the statutes, there might be circumstances that generate additional fees, including but not limited to:
- A will contest
- Apportionment of estate taxes
- An adversarial proceeding or litigation by or against the estate
- Preparation of an estate’s federal tax return
- Additional legal advice
