How do you pay for probate?
This is a concern of many families because most people do not have thousands of dollars in the bank that can be used to probate their loved one’s estate. The problem is that probate is expensive.
How to pay for probate?
Probate costs come out of a deceased person’s estate. The problem is that to access money in their bank account usually requires a court order. With probates costing upwards of $7000, this can be a concern for a lot of families. Fees incurred during probate are usually paid by an interim distribution approved by the court.
How is attorney paid?
Unfortunately, like most businesses (grocery stores, dentists, and plumbers) law firms do not work for free. Probably due to personal injury attorney advertisements, there is a general misconception that ALL attorneys work on a contingency basis. That is simply not true. Probate attorneys work on either an hourly rate or a flat fee for the entire probate.
Either way, probate attorneys usually require an upfront retainer to cover attorney fees, court filing fees, and costs of administering the Estate. The retainer is placed in their trust account and then the firm bills against it on a monthly basis.
That means a family member, in most cases, will front the retainer fees with a credit card or from their savings. At the end of the probate that family member is reimbursed off the top before distributions are made. https://youtu.be/HIJ9NCWHLNI