The probate process in New York ensures proper distribution of assets. However, it comes with substantial costs that can reduce the amounts your loved ones may receive.
Fees for filing probate in New York
The state considers assets valued under $50,000 small estates. Rather than going through a full probate, the estate undergoes a simpler “voluntary administration” process. The filing fee for a small estate is only one dollar.
However, larger estates face higher filing fees and potentially lengthier proceedings. For estates worth $500,000 or more, filing fees start at $1,250.
The cost of probate adds up quickly
Beyond court filing fees, other expenses that may affect the total probate costs include:
- Attorney costs: Legal fees can go up to 6% of the estate’s total value.
- Executor compensation: Commission rates for executors in New York start at 5% for the first $100,000 in the estate and go up to 2% for any amount over $5 million.
- Asset appraisals: Professional valuations for real estate, businesses or collections depend on the assets but can add up to several thousand dollars to the total probate cost.
- Newspaper notices: The cost of required legal announcements depends on the newspaper and the duration of the notice, but it can reach a couple hundred dollars or more.
Essentially, your estate’s value and complexity determine the total expenses during probate proceedings.
Who pays for probate costs?
The estate itself pays for probate expenses. Although your loved ones do not have to pay for probate out of their pockets, they may get less than what you intended to leave them. This reduction becomes particularly significant for modest estates. Probate costs can consume a large percentage of available assets or even leave your family with nothing.
Protecting your estate from excessive costs
A living trust allows assets to pass directly to beneficiaries. Meanwhile, joint ownership with rights of survivorship and payable-on-death designations for bank accounts offer more ways to bypass probate.
An experienced estate planning attorney can offer more ways to help reduce or eliminate probate costs. With strategic estate planning, more of your hard-earned assets reach your loved ones rather than pay for court fees and other expenses.