Probate & Trust Administration Services
Zinnanti Law Firm, P.C. handles uncontested trust administrations and probate proceedings after a decedent's passing.
What Is a Trust Administration or Probate Proceeding?
A trust administration is where the decedent passed with a trust. A probate proceeding is where the decedent died with or without a will. In either case, the task is the location and valuation of assets and, ultimately, the distribution of the estate to heirs or beneficiaries.
The time of a loved one's passing is very difficult. The disposition of an estate, whether by probate or trust administration, can be a highly emotional time requiring patience and compassionate handling. Survivors need to be timely advised of deadlines for initiating both probate and trust administrations; compiling and appraising an estate inventory, notifying creditors and filing required tax returns.
In the event that there was no estate planning, there can be uncertainty about the continued use of assets, care for dependents and the ability to pay bills in the interim of the estate disposition. This is typically a time of family discord and the possibility of litigation erupting between heirs or beneficiaries. We work to avoid litigation in order to keep costs down.
What Does It Cost?
Probate fees are in accord with the fee schedule set by law; 4% for the first $100,000 of the gross value of the estate, 3% for the next $100,000, 2% for the next $100,000 up to $1,000,000, and 1% from $1,000,000 to $9,000,000. Therefore, an estate with a gross value of $1,000,000 will cost $23,000 in legal fees to probate, not including out-of-pocket costs for a Probate Referee and filing fees.
Conversely, where there is a trust to be administered, the work required and the fees are typically considerably less. This is one of the benefits of settling a trust.
AVOID LITIGATION: If contested litigation starts between heirs or creditors, we refer the matter to one of our very trusted colleagues. Costs will rise considerably when parties wish to litigate. On the other hand, sometimes, litigation is unavoidable where a trustee or executor is dishonest or a potential heir or beneficiary contests a will or trust.
Collateral Matters - Retirements and Taxes
In either case, the final tax returns and, if required, a timely estate tax return, must be filed. Inheritance of retirement accounts, such as a traditional IRA, 401(k), 403(b) and the like, requires careful planning.
Further, it is not uncommon to find that various financial institutions have their own compliance demands with distribution and settlement of accounts. We have worked with dozens of financial institutions and insurance companies to recover death benefits, assets held in brokerage and cash accounts.