DO NOT CONFUSE "TYPICAL PROBATE COSTS" AND "FEDERAL ESTATE TAXES"
TYPICAL PROBATE COSTS
Probate Costs are computed based on the Gross Value of your Probate Estate (before deduction for expenses and indebtedness) -- and may add up to 6%, or more, of the gross value of your Probate Estate. For a married couple, Probate Costs may apply at the death of each spouse.
The following table sets forth the combined minimum statutory fees for a Personal Representative (Executor) and attorney in Missouri -- the following do not include accounting fees, court fees, appraisal costs, publication costs and surety bond premiums which are also typically included in Probate Costs. The following minimum statutory fees are based on the value of the personal property administered by and of the proceeds of all real property sold under order of the Probate Court. These types of fees are not set by statute in Kansas, but could be similar in amount.
Probate Estate Statutory Fees
$ 100,000 $ 6,600
400,000 23,100
700,000 38,100
1,000,000 53,100
2,000,000 93,100
4,000,000 173,100
(Plus 2% of the excess over $4,000,000)
FEDERAL ESTATE TAXES
The Federal Estate Tax is based on the Net Value of your Taxable Estate (after deduction for expenses and indebtedness). Without proper planning and elections, for a married couple, the Federal Estate Tax is normally due after the death of the surviving spouse based on the then combined Net Value of the couple's total Taxable Estate.
The American Taxpayer Relief Act of 2012 (the "Act") provides for a maximum Federal Estate Tax Rate of 40% with an exemption of $5,340,000 for persons dying in 2014. This exemption amount will be increased annually thereafter for inflation.
The Act also allows for "portability" between spouses. Provided that the estate of a decedent files a Federal Estate Tax return to make the proper election, portability permits a surviving spouse to apply the decedent's unused exclusion amount (exemption) to the surviving spouse's own transfers during life or at death.
The changes made by the Act to the Federal Estate Tax are supposed to be "permanent" -- but, as we have observed in the past, anything can happen in the future. Do not be surprised if the Federal Estate Tax (for example, complete repeal vs. a lower exemption and higher tax rate) becomes a hot topic in the not too distant future.
Remember, whether the value of your assets, property, retirement plans, life insurance, etc. is over or under the Federal Estate Tax exemption has nothing to do with Probate and the need to set up a Living Trust to avoid Probate Costs.
TYPICAL PROBATE COSTS
Probate Costs are computed based on the Gross Value of your Probate Estate (before deduction for expenses and indebtedness) -- and may add up to 6%, or more, of the gross value of your Probate Estate. For a married couple, Probate Costs may apply at the death of each spouse.
The following table sets forth the combined minimum statutory fees for a Personal Representative (Executor) and attorney in Missouri -- the following do not include accounting fees, court fees, appraisal costs, publication costs and surety bond premiums which are also typically included in Probate Costs. The following minimum statutory fees are based on the value of the personal property administered by and of the proceeds of all real property sold under order of the Probate Court. These types of fees are not set by statute in Kansas, but could be similar in amount.
Probate Estate Statutory Fees
$ 100,000 $ 6,600
400,000 23,100
700,000 38,100
1,000,000 53,100
2,000,000 93,100
4,000,000 173,100
(Plus 2% of the excess over $4,000,000)
FEDERAL ESTATE TAXES
The Federal Estate Tax is based on the Net Value of your Taxable Estate (after deduction for expenses and indebtedness). Without proper planning and elections, for a married couple, the Federal Estate Tax is normally due after the death of the surviving spouse based on the then combined Net Value of the couple's total Taxable Estate.
The American Taxpayer Relief Act of 2012 (the "Act") provides for a maximum Federal Estate Tax Rate of 40% with an exemption of $5,340,000 for persons dying in 2014. This exemption amount will be increased annually thereafter for inflation.
The Act also allows for "portability" between spouses. Provided that the estate of a decedent files a Federal Estate Tax return to make the proper election, portability permits a surviving spouse to apply the decedent's unused exclusion amount (exemption) to the surviving spouse's own transfers during life or at death.
The changes made by the Act to the Federal Estate Tax are supposed to be "permanent" -- but, as we have observed in the past, anything can happen in the future. Do not be surprised if the Federal Estate Tax (for example, complete repeal vs. a lower exemption and higher tax rate) becomes a hot topic in the not too distant future.
Remember, whether the value of your assets, property, retirement plans, life insurance, etc. is over or under the Federal Estate Tax exemption has nothing to do with Probate and the need to set up a Living Trust to avoid Probate Costs.