To pass on your Michigan assets and legacy to your family is understandably something that most people want. The problem is that most of the time, when you leave property or money to children or loved ones, probate fees get in the way. No one wants their family to have to wait for months for their inheritance. Likewise, no one wants their loved ones to have to spend the money on all of the fees associated with probate.
Probate costs vary in terms of the value and type of property that goes through probate. According to the Balance, there are about six different fees. These fees include the following:
- Attorney fees
- Bond fees
- Appraisal fees
- Accounting fees
- Court fees
- Personal representative fees
In some cases, your loved ones may even have to face miscellaneous fees. These fees may include postage or insurance costs. When it comes to probate fees, your loved ones can lose between a modest three percent of the assets or eight percent of the assets. Keep in mind that these percentage points do not include income taxes or estate taxes. Often, these taxes are due.
To avoid probate, living trusts are an alternative. With a trust, your loved ones do not go through probate. The proper estate plan will help ease the burden of your loved ones after you are gone. If you choose to set up a trust, this tends to cost you one to five percent of the assets.
Do not interpret this information as legal advice. This simply informs people about the costs behind probate.