As executor of my mother’s estate, which consists mainly of a house and furnishings worth somewhere between $100 and $150K, I have spoken briefly with our family’s long-time attorney, who lists estate work as his primary specialty. Although nothing is on paper as yet, he has alluded to a fee of approx. 5% of the estate proceeds for handling the paperwork involved, which I presume is before the state’s 4.5% bite in inheritance taxes. Although I’m not exactly an expert in these matters, this seems rather high for what at best seems the filing of a few official documents, and I (and the rest of the family) would prefer to see a flat fee assessed for each billable item.
My question, therefore, is, what is a typical attorney’s fee for this sort of work, and is a percentage arrangment or flat fee customary? Bonus question: is there room to negotiate? I have no problem playing hardball if need be.
Here it is for California. It might be more or less elsewhere but CA is generally considered a pretty expensive place to get things done so I might use these numbers as an upper boundary.
Estate matters are a huge source of ripping-offness for attorneys. They charge outrageous fees based on a percentage of the value, while having the executor do all the actual work. Also, they will slog through judicial probate for years instead of going for a quick independent administration.
My mom’s estate in Washington State was about $200K. If I remember right, the attorney’s fee was about $3K. It was concluded in about six months. No problems, very straightforward. I’ve tossed the paperwork, and I don’t remember if the fee was based on a percentage of the estate or if it was an hourly thing. I’m thinking it was hourly, based on work done.
My brother’s estate (also in WA) was about $150K, but the fees for that were about $6K and it took more than a year to settle, mostly because of issues with the title to his house (thanks, WAMU).
If you expect things to go smoothly – no contentiousness from anyone in the family, no problems with titles or deeds – maybe billable hours is the way to go.
I don’t have the numbers on me, but my husband’s mother’s estate was recently settled, and the attorney billed hourly, which was a lot less than whatever the percentage would have been.
Yes there is room to negotiate. And you can shop around. You will find variation in hourly rates and required retainers.
As Caffeine.addict says, most basic probate is done on an hourly basis. Fees paid by the estate usually have to be approved by the judge and are subject to the ethical-legal requirement that they not be excessive. http://www.law.cornell.edu/ethics/pa/code/PA_CODE.HTM#Rule_1.5(a)
In Maine, the Personal Representative (Executor) of an estate is required to file certain reports with the Probate Count. The reports must show that various legal notices were published, that all lawful debts were paid and that the assets were disposed of according to the instructions in the will.
For most simple estates the PR is a family member or relative and there’s no need for a lawyer. Our family has gone through the process several times and only hired a lawyer to draft a deed or two. Cost a couple of hundred bucks to make sure the real estate transfer was done correctly.
You might check with the local probate court where the will is filed to see what’s involved.