You can use estate assets to pay the bill, before inheritors get anything. Lawyers usually use one of three methods to charge for probate work: by the hour, a flat fee, or a percentage of the value of the estate assets. Your lawyer may let you pick how you pay—for example, $250/hour or a $1,500 flat fee for handling a routine probate case.
“Rural areas will typically charge much less than an urban major metropolis.” Real estate lawyers typically charge a flat fee, which ranges from $750 to $1,250, Reischer said. Although there shouldn’t be any hidden fees, Romer said there are always carve-outs and exceptions.
value of the estate is presumed reasonable if calculated based on the percentage schedule: Compensation for ordinary services of attorneys in formal estate administration is presumed to be reasonable if based on the compensable value of the estate, which is the inventory value of the probate estate assets and the income earned by the estate during the administration as provided in the following schedule: (a) One thousand five hundred dollars for estates having a value of $40,000 or less.
The primary factors that cause the cost of an estate to vary include: 1. Size of the Estate and Types of Assets – When there are more assets or par...
A number of factors affect how much an attorney will charge. The biggest factors tend to be the experience of the attorney, where the attorney is l...
An estate lawyer will likely charge by the hour if the estate is large and complex, or the client will require several services, such as a trust, h...
The best billing structure is ultimately the one that works for the client. Wills, trusts, and estates lawyers understand this, and tend to bill ac...
Nationally, the average top and bottom hourly rates for estate planning attorneys were $310 and $250.
Overwhelmingly, our readers reported positive experiences with their estate planning lawyers. More than eight in ten (82%) were satisfied or very satisfied with their attorneys, while only 6% reported any level of dissatisfaction.
There may be times when an estate planning lawyer insists on billing you by the hour – for example, if your situation requires ongoing legal support.
Thus, an attorney can cost anywhere from $200 to $2,000 dollars , depending on the circumstances. This also may vary depending on whether or not the cost includes the necessary filing fee, which is provided by the local court.
The cost to create an estate plan will vary according to a number of factors. In general, the two main factors that cost usually depends on include: what type of plan is needed (e.g., what legal documents) and how the attorney bills (e.g., flat fee versus hourly fee).
There are many benefits that can come from creating an estate plan. Some of these benefits include:
First, you can ask your network of family and friends for a recommendation. If they do not have any or if you do not feel comfortable asking, then you can conduct a simple online search.
The following is a list of some examples of the types of matters that estate planning attorneys may handle: 1 Preparing and drafting a person’s will; 2 Setting-up a living trust; 3 Finding ways to help reduce estate taxes; 4 Determining how to legally avoid the probate process (e.g., using gifts or trusts); 5 Creating power of attorney documents; and 6 Updating estate plans when necessary (e.g., in accordance with new estate planning laws or when changing the terms of a will).
Some of these benefits include: Ensuring that property and/or assets will be distributed to the right persons (i.e., beneficiaries); Reducing the amount of taxes and other costs that the estate may have to pay out; Avoiding the possibility of making family members go through the probate process;
What Does an Estate Planning Attorney Do? Estate planning is essentially an instruction manual that guides other individuals on how to manage and distribute a person’s property, personal belongings, and/or assets (i .e., the estate), when they are deceased or if they become incapacitated. Many of the legal issues surrounding estate planning are ...
Some attorneys charge an hourly rate for their services, which can range from $150 to upward of $300. It can depend on several factors, including the lawyer’s experience, whether they’re a general practitioner or a dedicated probate lawyer, whether they’re part of a firm or work on their own, as well as their location. Big city attorneys invariably charge more than their more rural counterparts, and probate lawyers’ fees tend to be steeper than those of general practitioners. After all, they’re experts when it comes to handling probate issues.
Executors should take a deep breath if they’ve been asked to administer an estate and they're panicking a little over how much it will cost them. Executors are not responsible for personally paying any professionals from whom they seek assistance during the probate process, including an attorney. Probate lawyer fees are always paid out of the estate.
Probate is required to move property and assets from the ownership of the deceased into the names of living beneficiaries, assuming that there’s no built-in mechanism in place to achieve this . For example, property held as joint tenants with rights of survivorship passes directly to the survivor by operation of law. The same applies to joint bank accounts, while “payable-on-death” accounts and assets with named beneficiaries are set up to go to the beneficiary upon the primary account holder’s death without the necessity of probate.
Of course, the estate’s beneficiaries might feel a bit of a pinch because this depletes the value of the estate , leaving less available to transfer to the ownership of others.
The estate will pay for six minutes or one-tenth of their time if they take a phone call on the executor's behalf that lasts just three minutes. It will pay for 18 minutes if the attorney spends 15 minutes drafting a letter – and yes, they keep meticulous records of their time. But there’s a bright side here.
Probate of an estate can be a complicated process, and an executor isn’t always up to the task of tackling it alone. It’s no reflection on their abilities, but rather the result of the numerous legal steps through which an estate must pass on its way to settlement. Lawyers who assist with the probate process charge for their work in one ...
Attorneys often delegate some routine work to paralegals and young associates – under their supervision, of course – and the hourly rates of these individuals are usually less, sometimes significantly. The estate won’t have to pay $300 an hour for correspondence drafted by a paralegal. Even so, the executor won’t know what the total fee will end up costing the estate until the end of the road when all the legal work is complete, every minute is accounted for and the estate closes.
Estate attorneys typically bill one of three ways: on a percentage basis; on an hourly basis; or on a flat fee basis. So which billing method is the right choice for you? Well let’s take a look at one these different methods really mean.
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The obvious benefit of the flat fee basis when it comes to estate administration work is that you will have in writing and know in advance exactly what you will be paying. Still, it’s important to ask the attorney how they are setting their flat fee and what assets they are including in making such a determination.
The answer is that you simply won’t know until the estate is actually finalized.
Our study bore out that expectation, with average minimum-maximum rates climbing from $210-$265 for lawyers with 10 years or less in practice to $280-$350 for the most experienced. But when you’re comparing lawyers and their fees, you should consider that experienced attorneys who specialize in estate planning or administration could ultimately be a relative bargain, because they can often answer your questions or handle your estate matters in less time than lawyers with less experience in this area of the law.
Many of the lawyers in our study reported a range of hourly fees, with minimum and maximum rates that averaged $250 and $310, respectively.
Attorneys often charge a fixed or “flat” fee to handle certain matters related to estate planning or administration. For instance, lawyers may quote you a single price to prepare a simple estate plan or will, to handle a typical probate proceeding, or to prepare a particular legal document. Attorneys also commonly offer a “bundle” flat fee to prepare several estate planning documents, including a will, estate plan, and health care directives.
Occasionally, attorneys may request an advance deposit for fees (often called a “retainer”) to handle ongoing estate administration work, such as managing trust assets for a child with special needs . They’ll then bill against those funds (at their hourly rate) as they do the work.
Nearly two-thirds of estate planning lawyers said they offer free consultations, typically for 30 to 60 minutes.
While more than two-thirds of estate planning lawyers in California and New York offered free consultations, the comparable figures in Georgia and Washington State were only 50% and 39%, respectively.
Most trust and estate attorneys offer free consultations, typically for 30-60 minutes.
If he quotes you a $5,000 flat fee and he bills his time at $200 an hour, he expects that he and his firm will spend about 20 to 25 hours on your case. The general rule is that the higher an attorney's hourly rate, the more experience he has.
An estate planning attorney is in business to earn a living, and time spent with you takes time away from billable hours that he could be spending on other clients' matters. That said, this is also his opportunity to "sell" you on retaining his services and to get an idea of what your matter involves. This is when he determines how many hours he and his staff will have to invest into resolving your issue...and if he wants to take your case on.
A flat fee is a composite of the attorney's standard hourly rate and how many hours he thinks he'll have to invest in your case to resolve it. Ask what that hourly rate is, and find out how much you'll be charged for the services of other attorneys and paralegals in the firm.
The only reasonable alternative would be for the attorney to charge you on an hourly basis. The downside to this approach is that it leaves a great deal of uncertainty for you as to what the final total cost will be. You can avoid this by asking your attorney to come up with a flat fee to cover all the services that she'll be providing to you. Just be prepared to move on and interview other attorneys if she declines.
A set dollar amount typically covers the initial meeting —if you end up retaining the attorney's services—as well as preparation of basic documents, review of documents, and signing of documents.
Most estate planning attorneys don't charge a fee for the initial meeting, but this is by no means a universal rule. Don't be surprised if the attorney does charge a small fee for sitting down with you for the first time. It can go either way.
Julie Garber is an estate planning and taxes expert with over 25 years of experience as a lawyer and trust officer. She is a vice president at BMO Harris Wealth management and a CFP. Julie has been quoted in The New York Times, the New York Post, Consumer Reports, Insurance News Net Magazine, and many other publications.
When you start comparing attorneys, pay attention to the types of lawyers that you're comparing. Typical fees for a personal injury attorney will be different from an immigration attorney or a divorce attorney. Every field of law has its own set of rules and best practices, so you need to make sure you're dealing with attorneys with specific experience in your type of case.
Hiring a lawyer on a flat-rate basis to create a simple will costs $300, while a will for more complex estates may be $1,200 to write.
An attorney retainer fee can be the initial down payment toward your total bill, or it can also be a type of reservation fee to reserve an attorney exclusively for your services within a certain period of time. A retainer fee is supposed to provide a guarantee of service from the lawyer you've hired.
Avoid disagreements with your attorney about how much you owe by taking the time to review your attorney fee agreement carefully. You may also hear this document called a retainer agreement, lawyer fee agreement or representation agreement. Either way, most states require evidence of a written fee agreement when handling any disputes between clients and lawyers. You must have written evidence of what you agreed to pay for anyone to hold you accountable for what you have or have not spent.
An attorney contingency fee is only typical in a case where you're claiming money due to circumstances like personal injury or workers' compensation. You're likely to see attorney percentage fees in these situations to average around a third of the total legal settlement fees paid to the client.
At first glance, flat-rate legal services seem to be a complete package deal so that you don't pay more for your case than is necessary. However, if you don't comply with every single term listed on the flat fee contract, then your attorney still has the right to bill you for additional costs that may come up in your case. For instance, a flat fee lawyer working on an uncontested divorce case may still charge you for all court appearances. Plus, they may also only offer the flat fee if you have no property issues and no child support issues either.
If you lose in court, you may still have to pay for the lawyer's expenses. Many cases such as those involving child custody or criminal charges are not eligible for a contingency fee structure.
Some states provide specific rules for fees. They're typically calculated by multiplying the gross value of the probate estate by a specific percent. As the gross value increases the percent decreases. 3  For example, the fee might be equal to 4 percent of the first $100,000 then decrease incrementally until it's just 1 percent of values over $9 million. 4 
The executor is entitled to be reimbursed for any estate administrative expenses she might pay out of her own pocket. These might include expenses that had to be paid before the estate could be opened for probate, such as doctor and funeral bills.
Even in states where the personal representative's fee is set by state law, he might be entitled to receive an additional fee for "extraordinary" services that are rendered above and beyond the call of duty. 4 
Sometimes the named executor is an institution such as a bank or a trust company. 10  11  In this case, look to see if the will specifies that the institution is entitled to receive compensation in accordance with its published fee schedule as of the date of the decedent's death. 12 
The executor is entitled to be reimbursed for any estate administrative expenses she might pay out of her own pocket. These might include expenses that had to be paid before the estate could be opened for probate, such as doctor and funeral bills. Travel expenses and mileage incurred while administering the estate as well as office supplies and postage should also be reimbursed. 15 
This can occur early on in the probate process or toward the end when the estate is getting ready to close.
If there is more than one personal representative and the will is silent as to how each is to be paid—it doesn't include any provisions for this—state law will dictate the fees paid to each of them. In some states, the law requires that multiple executors must divide the fee equally. In others, each executor can collect the full fee that one personal representative would be entitled to receive. 9 
Clients like to know that the fee is set, and reflects the work that they will be doing. Clients can also judge whether or not the fee is reasonable given the division of work between the law firm, the executor and family, accountants, or others.
However, this has an element of unpredictability that executors may not like. At the very least, if you are an executor, you should ask for a good faith estimate of such fees and to be billed regularly and informed as soon as possible if the fees will exceed that estimate.