When someone passes away in California without a living trust, their estate usually has to go through probate. Most people underestimate what that costs, in money and in time. Here is a realistic breakdown.
Statutory fees are set by law, and based on gross value
California Probate Code sets statutory fees for both the attorney and the personal representative, calculated on the gross value of the estate, not the net value after debts. This is the detail that catches families off guard. If you own a home appraised at $1.2 million with an $800,000 mortgage, the fees are calculated on the full $1.2 million, not the $400,000 of equity.
A real cost example
For a $1 million estate, combined statutory fees for the attorney and the representative total roughly $46,000. For a $2 million estate, that figure climbs to about $66,000. On top of the statutory fees come court filing fees, appraisal costs, publication fees, and sometimes a bond premium. All told, probate commonly consumes 4 to 8 percent of the estate.
The time cost
Probate in California typically takes 12 to 18 months, and complicated or contested estates can take longer. During that time, assets are tied up and your family waits. We have watched estates that started comfortably whole shrink dramatically by the time the process finally closed.
The hidden costs
- Privacy: probate is public record, open to anyone.
- Conflict: a public, open process invites disputes and claims.
- Lost opportunity: assets cannot be managed or sold freely while tied up in court.
How a living trust avoids all of it
A properly funded living trust keeps your estate out of probate entirely. There are no statutory probate fees, no 12 to 18 month wait, and no public file. Your successor trustee handles everything privately, and your family receives what you left them without the court standing in the middle. The cost of setting up the trust is a small fraction of what probate would have taken.
This article is for informational purposes only and does not constitute legal advice. Every family's circumstances are unique. Contact MVP Law Group for a consultation tailored to your situation.