If you pass away without an estate plan in place, or if you forget or fail to place certain assets in your trust before you die, your loved ones will have to go through probate to recover them. Though the cost of probate in Tennessee varies on a case by case basis, the general rule of thumb is that the greater the value of the remaining property, the more expensive probate will be. That said, you may wonder what your fees will cover. The Balance briefly explains the various costs associated with probate.
One fee your family will have to pay is the personal representative fee. The personal representative may collect a “reasonable fee,” which may be equal to the value of a certain percentage of the probated property. In addition to the upfront fee, the personal representative may also charge “extraordinary fees,” for any services he or she renders that go beyond the basic.
Your family will also have to pay the court to oversee probate. Court fees vary from state to state and may range from a few hundred dollars to over a thousand. If your family hires an attorney to assist with the process, it will have to pay attorney fees as well. As with the personal representative fee, the attorney may charge a “reasonable fee” in addition to “extraordinary fees.”
If you pass away with significant assets such as artwork, jewelry, antiques, cars, boats and the like, your family may have to hire an appraiser to determine the date of death values of your property. Depending on how much property you leave behind, the fees can range from a few hundred to several thousand dollars. If your family utilizes the services of an accountant to manage your various sources of income, it will have to pay accounting fees as well.
Probate also comes with a host of other fees, including the cost to store property, the cost to insure property, mail postage fees, the cost to move and ship property and more. Most families should count on spending between 3% and 8% of the value of the assets on probate, and that is before estate and income taxes come into play.
You should not use this article as legal advice. It is for educational purposes only.