When my grandmother passed away a few years ago, our family learned a painful lesson about probate. Despite having a will, her modest estate a small home in Arizona and about $75,000 in savings took nearly 14 months to settle. The attorney fees, court costs, and other expenses ultimately consumed almost $18,000. But even worse than the financial hit was the emotional toll of having our family's private matters dragged through public court during an already difficult time.
That experience is what eventually led me to the estate planning field, and it's why I'm so passionate about helping families understand probate and their options for avoiding it.
If you've heard that probate is something to avoid but aren't quite sure why, you're not alone. Many people don't realize just how costly, time-consuming, and emotionally draining the probate process can be until they're stuck in the middle of it.
What Is Probate, Anyway?
At its core, probate is the court-supervised process of validating a deceased person's will (if they had one), paying their debts, and distributing their remaining assets to heirs. If someone dies without a will, legally known as dying "intestate" the probate court decides how to distribute their assets according to state law.
Sounds straightforward enough, right? Unfortunately, the reality is rarely simple or quick.
The Financial Costs Many Don't See Coming
When people think of probate costs, they usually focus on attorney fees. And yes, those can be substantial typically ranging from 3-7% of the estate's total value. But that's just the beginning.
Here's what the total bill often includes:
1. Attorney Fees
Legal fees alone can range from $3,000 for simple estates to tens of thousands for more complex situations. In most states, attorneys can charge either an hourly rate (often $250-500 per hour) or a percentage of the estate's value.
David from California shared: "My father's estate was worth about $800,000, mostly in his home and retirement accounts. The attorney's fees came to over $24,000—money that should have gone to my kids' college funds."
2. Executor/Personal Representative Fees
The person managing the estate (called the executor or personal representative) is entitled to compensation in most states. These fees often mirror what attorneys can charge—another 3-5% of the estate value.
Even when family members serve as executors and waive their fees, they often still need to take time off work to handle estate matters, resulting in lost wages.
3. Court Costs and Filing Fees
These vary by state and county but typically include:
- Filing fees for the initial petition ($200-500)
- Publication of legal notices in local newspapers ($100-400)
- Filing fees for additional documents ($20-200 each)
4. Appraisal and Professional Fees
Estates often need professional appraisals for real estate, businesses, art, collectibles, and other assets. Each appraisal can cost $300-600, with specialty items costing much more.
You may also need:
- Accountants to prepare estate tax returns ($1,500-4,000)
- Property appraisers ($300-700 per property)
- Business valuators ($5,000+)
5. Bond Premiums
Many probate courts require the executor to post a bond—essentially an insurance policy that protects the estate from executor misconduct. These premiums typically run 0.5-2% of the estate value.
6. Unexpected Estate Maintenance Costs
While the estate is in probate, ongoing expenses continue:
- Mortgage payments and property taxes on real estate
- Insurance premiums
- Utility bills and maintenance costs
- Property management fees
Sarah from Texas told us: "My mom's house sat empty for 11 months during probate. We had to keep paying the mortgage, utilities, lawn care, and insurance the entire time—about $2,200 per month that we couldn't recover."
7. The Big Picture
When you add all these costs together, the total often ranges from 5-10% of the estate's value. For a $500,000 estate, that means $25,000-$50,000 that could have gone to loved ones is instead spent on the probate process.
And here's the kicker: many of these costs are completely avoidable with proper planning.
Beyond Money: The Hidden Emotional and Time Costs
As significant as the financial costs are, many families find the non-monetary costs of probate even more burdensome.
Privacy Lost
Probate proceedings are public record. That means anyone—neighbors, colleagues, distant relatives, or complete strangers—can view:
- The contents of the will
- A detailed inventory of all assets
- The names and addresses of beneficiaries
- Family disputes that arise during the process
- The value of everything the deceased owned
For many families, this loss of privacy feels like adding insult to injury during an already difficult time.
Time Delays
The probate process is rarely quick:
- Simple estates typically take 6-9 months at minimum
- More complex estates often take 1-2 years
- Contested estates or those with unusual assets can drag on for 3+ years
During this time, beneficiaries may be unable to access needed funds or property.
Jennifer from Ohio shared: "After my husband died unexpectedly, our joint checking account was frozen. Even though I was named in his will, I had to petition the court for a family allowance just to pay our mortgage while probate proceeded. The stress was unbearable."
Emotional Toll
Grief is hard enough without adding legal complications:
- Family conflicts often emerge or worsen during probate
- Having to repeatedly engage with courts and lawyers keeps grief fresh
- The public nature of proceedings can feel invasive during a vulnerable time
- Delays in closing the estate can prevent emotional closure
Geographic Complications
If the deceased owned property in multiple states, their estate may need to go through probate in each of those states—a process called "ancillary probate" that multiplies the costs, time, and headaches.
Who Gets Hit Hardest by Probate?
Contrary to popular belief, it's often not the wealthiest estates that suffer most from probate. Very large estates typically have extensive planning to minimize probate impacts.
Instead, it's usually middle-class families who feel the greatest proportional burden:
- For a $300,000-$1,000,000 estate, probate costs can significantly reduce inheritances
- These families often don't have other liquid assets to cover ongoing expenses during probate
- The percentage of the estate consumed by costs is often higher for modest estates
How to Avoid Probate (And When You Might Not Need To)
Now for the good news: probate is largely avoidable with proper planning. Here are the most common strategies:
1. Revocable Living Trusts
A revocable living trust is the most comprehensive probate-avoidance tool. Assets properly transferred to a trust bypass probate entirely.
How it works:
- You create a trust and transfer your assets into it during your lifetime
- You maintain complete control as the trustee
- Upon your death or incapacity, your chosen successor trustee distributes assets according to your instructions—all without court involvement
Mark from Washington shared: "When my father passed, his entire estate transferred to beneficiaries in about three weeks because he had a living trust. My neighbor's father died the same month without a trust, and they're still in probate court a year later."
2. Joint Ownership
Certain forms of joint ownership provide "rights of survivorship," meaning the surviving owner automatically receives the deceased's share without probate.
Common types include:
- Joint tenancy with right of survivorship
- Tenancy by the entirety (available only to married couples in some states)
- Community property with right of survivorship (in community property states)
While simple, this strategy has limitations and potential drawbacks, particularly for non-spouse situations.
3. Beneficiary Designations
Many financial accounts and assets can transfer directly to named beneficiaries:
- Life insurance policies
- Retirement accounts (401(k)s, IRAs)
- Transfer-on-death (TOD) bank accounts
- Transfer-on-death securities registrations
- Transfer-on-death deeds for real estate (available in many states)
These designations supersede will instructions and avoid probate.
4. Small Estate Procedures
Most states offer simplified procedures for "small estates" under certain value thresholds (ranging from $20,000 to $275,000 depending on the state). These shortcuts can significantly reduce costs and time.
When Some Probate Might Make Sense
While avoiding probate is generally beneficial, there are situations where going through at least a simplified probate process might make sense:
- When the estate has significant debt or potential creditor issues
- When you anticipate disputes among heirs that might benefit from court oversight
- When the estate is very small and qualifies for expedited procedures
- When the deceased didn't leave enough liquid assets to pay final expenses
Real Stories, Real Savings
The difference between estates that go through full probate and those that avoid it can be dramatic:
The Peterson Family — Their father's $450,000 estate went through probate in Illinois. After 14 months and over $32,000 in various probate costs, the children received their inheritance.
The Martinez Family — Their mother created a living trust with Legacy Buddy. When she passed away with a $475,000 estate, her assets transferred to her children within weeks, with no court costs and no attorneys' fees.
How Legacy Buddy Makes Probate Avoidance Simple and Affordable
Traditional estate planning with attorneys can cost thousands upfront, making comprehensive probate avoidance seem out of reach for many families. That's why we created Legacy Buddy.
Our platform makes creating a proper estate plan straightforward and affordable:
- Legacy Starter ($99): Includes a Revocable Living Trust to help avoid probate
- Complete Trust Plan ($299): Our most popular option includes a comprehensive trust-based plan with additional documents to protect you and your family
- All packages include unlimited free updates for life, ensuring your plan evolves as your life changes
The bottom line? Spending a few hundred dollars now can save your loved ones thousands in probate costs and months of stress later.
Take Action Now
Don't let your family learn about the costs of probate the hard way. Creating a proper estate plan is one of the most loving things you can do for those you care about.
