Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
If you think probate is just a small court process after someone passes away, think again.
In California, probating a $1 million home costs around $46,000 in legal and administrative fees alone.
That’s right! Even if the home has a huge mortgage, the probate court still calculates its fees based on the total value of the property, not the equity.
So, if there’s an $800,000 mortgage and only $200,000 in equity, your family would still be paying probate fees on the full $1 million value.
This surprises many California homeowners, especially here in Orange County, where even average homes often exceed that price. Let’s take a closer look at where that money goes and, more importantly, how you can avoid it.
Probate costs in California are set by law under Probate Code Section 10810, which establishes a percentage-based fee structure. Both the attorney handling the probate and the executor of the estate are entitled to these fees and they are identical in amount.
Here’s how that $46,000 breaks down for a $1 million home:
That means half the money goes to the probate attorney, and the other half goes to the executor.
The attorney’s role during probate includes:
Even if the probate is straightforward, the attorney’s fee is based strictly on the value of the estate, not the amount of work performed.
The executor, sometimes called the personal representative, is the person responsible for administering the estate. Their duties include:
Under California law, executors receive the same fee as the attorney. In some cases, a family member serving as executor will waive their fee, but many professional or court-appointed executors do not.
Beyond attorney and executor compensation, there are other mandatory probate costs that can quickly add up, including:
Altogether, the true cost of probating a $1 million home often exceeds $50,000, money that could have gone directly to your family instead.
The biggest surprise for most homeowners is that probate fees are calculated based on the gross value of the property, not the net equity after debts.
So, even if the home is heavily mortgaged, the probate court still treats the entire $1 million property as part of the estate’s value.
That means:
For example, if your home is worth $1 million but has an $800,000 mortgage, the court still bases its calculation on $1 million. The result is a $46,000 probate bill even if your heirs only receive $200,000 in equity.
This rule hits especially hard in Orange County, where property values are high but many homeowners still carry large mortgages.
The financial burden is just one problem. Probate also creates emotional and logistical challenges for families.
On average, California probate takes 18 to 24 months to complete. During that time:
The process is also public, meaning anyone can look up your estate’s details including asset values and who inherits what.
The good news is that probate is completely avoidable with proper estate planning. The key tool is a revocable living trust.
When you create a living trust, you transfer ownership of your home and other assets into the trust during your lifetime. You still control everything. You can buy, sell, refinance, or change your trust anytime.
When you pass away, your successor trustee steps in to manage the assets according to your wishes without court involvement.
That means:
|
Category |
Probate (No Trust) |
With Living Trust |
|
$1M Home Cost |
About $46,000 in fees |
Typically $2,500–$4,500 setup |
|
Time to Settle |
About $46,000 in fees |
Typically $2,500–$4,500 setup |
|
Time to Settle |
9–18 months |
1-2 months |
|
Privacy |
Public court record |
100% private |
|
Stress Level |
High |
Low |
|
Family Control |
Court-supervised |
Family-controlled |
Creating a trust is one of the simplest and most effective ways to protect your home, savings, and loved ones from California’s costly probate system.
While a revocable living trust is the best long-term solution, other tools can help minimize or avoid probate for certain assets:
An experienced estate planning attorney can help you determine which combination of strategies fits your goals and assets best.
In Orange County, where the median home price now exceeds $1.1 million, nearly every homeowner’s estate qualifies for probate if there’s no trust in place.
That means even middle-class families, not just the wealthy, face probate costs of $46,000 or more just to transfer the family home.
This is why so many local families are choosing to set up a revocable living trust now, rather than leaving that burden for their children later.
Let’s revisit our original example.
A homeowner in Irvine passes away, leaving behind a $1 million property with an $800,000 mortgage.
Here’s what happens:
|
Category |
Amount |
|
Gross Estate Value |
$1,000,000 |
|
Mortgage Debt |
$800,000 |
|
Equity |
$200,000 |
|
Probate Fees |
$46,000 |
|
Remaining Equity for Heirs |
$154,000 (after other costs) |
That means the family loses nearly 25% of the remaining equity just to probate fees and expenses.
If the homeowner had created a living trust, those fees could have been avoided entirely and the property could have transferred to heirs within weeks instead of over a year.
Probate in California is expensive, time-consuming, and completely avoidable. When a $1 million home costs about $46,000 to move through probate even with an $800,000 mortgage, it’s easy to see why planning ahead is essential.
A properly drafted revocable living trust protects your assets, saves your family tens of thousands of dollars, and prevents the court from controlling your estate.
If you’re a homeowner in Orange County, now is the time to put your estate plan in place. It’s one of the smartest financial decisions you can make for your loved ones.
Don’t let your hard-earned estate get tied up in court.
Schedule your free 30-minute consultation today with Michael Pevney, your trusted Orange County estate planning attorney.
