The actual costs and fees will depend upon the size of the estate, the nature of your assets, and the attorney that you retain to represent the estate. Additional issues may arise that could increase the cost of administration, including will contest, estate tax audits, or the transfer of difficult assets such as closely held family businesses, or out of state real estate. Attorneys will either charge an hourly rate or a percentage of the estate as their fee.

Additional Information on Statutory Fees

Lawyers charge fees for their services under three different formats.  They are hourly rates, fixed fee rates, and percentage of the estate rates.  Which structure is appropriate depends on a number of factors.  These factors include the identity of the beneficiaries, the complexity of the estate, the risk of will contest and litigation, the size of the estate, and whether it or some part of the estate will go through probate.  Generally, it is less expensive to administer an estate that does not go through Probate Court.

The State of Ohio created a fee guide line for Probate administration. Local courts also set fee guidelines, review fee applications, and handle fee disputes.  In general the fee guideline under Ohio law is:

• 5.5% of the first $50,000
• 4.5% of the next $50,000
• 3% of the next $300,000
• 2% of everything over $400,000
• 1% of assets not going through Probate

When engaging an attorney for a probate matter get a clear understanding for how the attorney will be charging a fee, what is included in that fee, and what is not included and how that will be charged.  Many local Probate Courts require a written fee agreement.  It is good practice to have a written fee contract so there is no dispute which could hold up the distribution of the estate or cost the estate additional fees and time in sorting it all out.

A revocable trust is a trust that is a separate legal document apart from the will.  It is not controlled and supervised by Probate Court.  Therefore, the cost of administration is lower.

• Saving estate taxes
• Control over the beneficiary’s inheritance
• Probate avoidance

You may use a trust for one, two, or all three of these purposes as described below.

A trust designed to save federal estate tax is complicated and is only used by people with a net worth in excess of the federal estate tax limit.  In 2011/2012 this limit was $5,000,000.  These advanced trusts allow a marital couple to shelter up to $10,000,000 from federal estate taxes.  The tax rate is 35% of the value of the estate over the base limit.  If your estate is less than $5,000,000 these trust are not necessary for you.  In 2013, the credit goes down to $1,000,000 unless Congress changes the rules. 

While only a few people need a trust to save estate taxes, many people may benefit from a trust that provides control over the inheritance.  These types of trust can be effectively used for estate of several hundreds of thousands of dollars and up.  The trust places controls, safe guards, and a distribution plan around the inherited assets.  For example, your child is 16.  If you die, you would like the trust to provide for your child’s support until age 25 and then the child receives one-half of the trust at age 25 and the other one-half at age 30.  These control based trust manage an inheritance for special needs beneficiaries, minor beneficiaries, spendthrift beneficiaries, and anytime there is a reason to delay the inheritance or to protect the inheritance from risk.  They can also protect the inheritance from law suits and divorces that may happen to the beneficiary.  For example, dad dies and leaves his money in trust for his daughter providing income to my daughter for life and the remainder at her death to my grandchildren will not be a marital asset if the daughter divorces her husband.

The other purpose for a trust is to avoid probate.  Assets owned by the trust, at the death of the person who set up the trust, do not go through probate.  This saves time and money.  (See Avoiding Probate LINK)  Again there is no dollar limit on probate avoidance.  Many people with small estates can benefit from avoiding probate.

• 4% of the first $100,000
• 3% of the next $300,000
• 2% of everything over $400,000
• And 1% of non-probate assets

The matter is set for a hearing.  Everyone who is an heir at law would receive notice by certified mail or waives notice.  For example, if a dad died, the heirs at law would be all of his natural and adopted children.

If all of the heirs consent to the appointment of the administrator, then the hearing is not necessary and the Court will appoint that person.  The Court will conduct a hearing to determine the suitability of the applicant to serve as administrator or pick one if two or more apply to serve as the administrator.

If you would like a free consultation, contact us with questions.

Whether an estate goes through probate or not, depends on how the decedent held assets and what types of as­sets were owned at the time of death. Certain assets have to go through probate, other assets do not.

The following is a list of assets that typically avoids probate:

• Jointly held property with rights of survivorship
• Life insurance and annuities with a named beneficiary
• Retirement plans, IRAs, and pensions with a named beneficiary
• Assets held in a Living Trust at the time of a decedent’s death
• Payable on Death (POD) bank accounts
• Transfer on Death (TOD) affidavits for real estate
• Transfer on Death (TOD) stocks, bonds, and brokerage accounts
• Transfer on Death (TOD) automobile titles

All other assets that are titled in the decedent’s individual name alone or where no beneficiary is named must go through probate.

There are three levels of probate.  They are based on the dollar value of the assets that are going through probate.  The three levels are as follows.

Summary Release – The estate can be paid to the person who paid the funeral bill as long as the estate is less than $5,000 or the cost of the funeral, whichever is less.  Thus, if the bank account is $3,500 and the funeral bill is $1,500, then you have to do a Relief from Administration.  If there is a surviving spouse, a Summary Relief may be granted for an estate not exceeding $40,000 plus $5,000 for the funeral bill.

Relief From Administration – You can apply to have the estate relieved from administration if the probate assets are less than $35,000 payable to a non-spouse and $100,000 payable to a spouse.  You file an Application for Relief From Administration and the court will issue an order allowing the relief and appointing someone as commissioner to collect the assets.  This is considered a small estate procedure.

Full Administration – All other estates must do a full administration which includes appointment of the executor/administrator, filing of the inventory, waiting for the will contest period and creditor claim period to expire, and the filing of an account with the court.