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Blog entry by Delbert Garris

California probate fees and timeline for a house

California probate fees and timeline for a house

A lot of people think that when someone dies and leaves a house, the family can just move in or sell it right away. That is not how it works in California probate fees and timeline. The house belongs to the estate now, not to any one person, and the court has to be involved if the property is worth enough.

Probate is the court process that transfers ownership from the dead person to the heirs. In California, the fees for the executor and the lawyer are set by a state law called a statutory fee schedule. They are not hourly rates and they are not negotiable. The fee is based on the gross value of the estate, which includes the full market value of the house, even if it has a big mortgage. So if the house is worth a lot, the fees go up fast. That surprises a lot of people.

The law gives a percentage for each chunk of the estate's value. For the first hundred thousand dollars, the fee is four percent. For the next hundred thousand, it goes down to three percent. It keeps dropping in steps. But the total can still be a large number. And the executor and the attorney each get that same amount, so the total cost can be two times the fee schedule.

Probate also takes time. In California, it usually takes at least nine months, sometimes a year or more. There are steps you cannot skip. You have to publish a notice in a newspaper. You have to wait four months for creditors to make claims. You have to file an inventory and an accounting. The court has to approve the sale of the house. That means the family cannot get the money quickly.

There is a way to avoid full probate if the estate is small enough. California has something called a small estate affidavit. But the rules are strict. The total value of the estate has to be under a certain limit, and that limit does not include cars or some other things. For a house, the limit is low enough that most homes in Sacramento County are worth too much to qualify.

Another way to avoid probate is to have a living trust. If the parents put the house into a trust while they were alive, then when they die, the house passes to the beneficiaries without going through probate court. No court fees, no probate timeline. That is why so many people in California set up trusts. But if there is no trust, and the house is worth more than the small estate limit, then probate is almost always required.

If you are the executor, you do not have to handle it alone. A probate attorney can guide you through the process. The cost is set by law, so you know what it will be. And a CPA can help with the tax side of things, because the estate might owe income tax or estate tax depending on the situation.

Every family's situation is different. Talk to a lawyer who knows probate in Sacramento County. They can tell you what applies to your specific case.

A closer look is at California probate fees and timeline.

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