Three Questions About Probate: Finale

“All happy families resemble one another, but each unhappy family is unhappy in its own way”

- Ambrose Bierce

How much will probate cost?

Inevitably, this is the question everyone wants to know the answer to. Sometimes this is even the first question I get asked when someone sits down across my desk. It’s a tough question to answer and it can be a tough answer to hear.

The cost of probate is often determined based on the total value of the estate. Some lawyers will use the value of the inventory as the base number. Others will use the amount reported on the estate tax return. In Iowa, state statute limits attorneys to charging no more than 2% of the total value of the estate.

Some of my avid readers may have a bit of sticker shock thinking about 2% of the total probate estate. On a $1,000,000 estate, the fee would be $20,000. There are a number of reasons for setting a fee in this manner. At the outset, it is often difficult to determine just how much work will be involved in completing the probate process. Sometimes, when large families are involved, the amount of communications required to keep the heirs apprised of the process can be a substantial cost to the attorney. Other times, the attorney gets involved with settling claims made by third-parties like charities or in interpreting what the deceased meant by the terms in his will.

Because of these unknowns, attorneys are forced to estimate their costs, determine the amount of profit they need to stay afloat and try to stay competitive all at once. However, regardless of your attorney’s method of choice, always remember that the fee charged should be negotiated between you and your attorney at the time you choose to hire him. You may be able to negotiate for administrative costs (i.e. cost of publishing notice, postage, etc.) or even court costs, if the process is simple enough.

I hope you've enjoyed our little discussion of some of the basics of probate. If you'd like to learn more, please do not hesitate to contact our office by phone or e-mail.

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Lawyer Joke of the Day:

Q: What is the one word that can make a lawyer smile?

A: Fees!