Probate Is Expensive - Avoid It!

Probating an estate is the court supervised process of distributing a person’s assets after they pass away. Determining the specific amount of fees requires knowing the different elements of probating an estate. There are four categories of probate fees and costs.

First is the bond premium. The probate estate may have to pay for a bond for the personal representative (executor) to guarantee they will properly administer the estate. The amount of the bond depends on the size of the estate but the fee generally ranges between $200.00 and $700.00.

Second is the cost of publication. A probate estate must publish notice to creditors. This gives creditors the opportunity to discover the estate, come forward, and notify the personal representative (executor) that debts exist that must be paid. Publication costs vary by county. In Johnson County, KS and Jackson County, MO the fee is generally between $125.00 and $220.00. This cost is determined by the fees charged by the newspaper making the publication.

Third are the court costs. Every estate must pay costs based upon the size of the estate being administered in probate. Each County sets its own fees and costs. (Jackson County, Clay County, Platte County, Johnson County)

Fourth, and finally, is the largest category of expenses and fees for probate are a personal representative’s commission and attorney fees.

MISSOURI RESIDENT Missouri law can give you a good starting point. The law provides a minimum fee schedule for the lawyer and the personal representative. The minimum is a percentage of the estate and the percentage amount

is based upon the size of the estate (yes, the fee can be even higher than the below listed minimums).

The fees are:

  • 5 percent of the first $5,000

  • 4 percent of the next $20,000

  • 3 percent of the next $75,000

  • 2.75 percent of the next $300,000

  • 2.5 percent of the next $600,000 and

  • 2 percent of everything more than a million

KANSAS RESIDENT Unfortunately, fees are a bit harder to estimate if the deceased was a Kansas resident. Kansas law provides much more limited guidelines. Probate fees in Kansas are based upon the actual expenses associated with settling the estate, such as executors’ fees and attorneys’ fees. Both executors and attorneys are obligated to keep their fees reasonable, and their fees are subject to scrutiny by the Kansas probate court. The fee structure created in Missouri gives even Kansas residents a good base for gaining an understanding of fees and expenses to expect. Basically, no matter what, the state, probate is expensive, here are a few examples:

Example 1 Estate $250,000.00

  • Attorney fees: $7,425

  • Personal Representative: $7,425

  • Bond $330.00

  • Filing Fee: $151.50

  • Publication fee: $100.00

Total costs: $15,431.5

Example 2 Estate $750,000.00

  • Attorney fees: $20,300

  • Personal Representative: $20,300

  • Bond $720.00

  • Filing Fee: $151.50

  • Publication fee: $100.00

Total costs: $41,771.5

The easiest way to avoid probate is to set up a revocable living trust. Most of our clients have chosen this option. Still, if you have a Trust, FUND your trust. If you don’t fund your trust your estate will be probated. If you’ve chosen a will-based estate plan make sure to take advantage of those beneficiary designation options!

Joseph Esry