Michigan Probate Costs and Fees: Managing Estate Expenses

When administering a loved one's estate, it is important to be aware of the various fees that might arise during the probate process. Probate fees can impact the overall distribution of assets and the compensation of those involved in the administration.  In this post, the probate attorneys of Thompson Legal will detail the fees that you can expect during a Michigan probate estate administration.

Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions about fees and the specifics of your case, it’s advisable to speak with an attorney. Contact Thompson Legal to schedule a discovery call with a Michigan probate attorney.

1. Court Filing Fees:

The probate process in Michigan typically begins with filing necessary documents with the probate court. The total cost of your filing package will vary depending on your circumstances and the type of relief requested. However, the filing fees for a typical Application to Open and Informal Estate Administration are $187.00 including the cost of your $12.00 Letters of Authority. Filings fees are due at the time your pleadings are processed by the court.

2. Bond Fees:

While not always required, the court may require the personal representative to post a bond to protect the estate from mismanagement. This bond is obtained through a surety company, and often referred to as a fiduciary bond. Probate bonds, once obtained, can only be discharged and canceled through an order from the Probate Court.

Bond fees are typically paid annually and are based on the value of the estate. The cost of the bond varies depending on the surety company and the estate's value. This fee is typically paid before the Personal Representative can qualify for appointment and receive their Letters of Authority.

3. Cost of Publication

Unless otherwise exempt, estates typically incur the cost of publication to creditors. The personal representative must publish this notice in the county where the decedent was domiciled.  This fee can be paid after the Estate’s assets have been discovered. 

Effective March 1, 2023, a $110.95 publication fee will be charged by the Detroit Legal News; if you publish with another newspaper, check with them to determine their fee.

4. Inventory Fee:

Inventory Fees are an unavoidable expense required by Michigan law. This fee starts at a flat $5.00 and is applied in bracket style fashion based upon the total value of the Estate’s assets. An Inventory Fee Calculator provided by Kent County’s Probate Court can be found here (Inventory Fee Calculator - Kent County, Michigan (accesskent.com)). This fee is paid after the Estate’s assets have been established and gathered and is typically paid at the time the Inventory is filed.

Attorney's Fees:

Hiring an attorney to assist with the probate process is common and often advisable. Michigan law allows attorneys to charge reasonable fees for their services in probate estate administration. These fees can vary depending on the complexity of the case, the attorney's experience, and the time and effort required. Attorney fees incurred in estate administration are priority administrative expenses during disbursement. Attorneys may charge hourly rates or flat fees, and the court may have to approve these fees before they are paid from the estate.

Personal Representative's (Executor's) Fees:

The personal representative, also known as the executor, is responsible for managing the estate during probate. Michigan law allows the personal representative to receive reasonable compensation for their services. The amount of compensation can vary but is typically ranges from $15-$200 an hour depending on the complexity of the work required. The court may have to approve these fees, and they are paid from the estate's assets prior to beneficiary disbursements.

Appraiser's Fees:

In some cases, it may be necessary to hire appraisers to determine the value of specific assets within the estate, such as real estate or valuable personal property. Appraisers charge fees for their services, which are typically paid from the estate.

Taxes:

A personal representative is required to ensure the decedent’s final Individual Tax Return (Form 1040) and Estate Tax Return (Form 1041) are filed before completing estate administration. What taxes may be due, if any, are highly fact-specific to your situation and should be discussed with the appropriate legal and tax professionals.

Miscellaneous Fees:

Throughout the probate process, there will likely be filing fees for various pleadings including Motions, Certified Court Orders, Creditor Disallowances, Accountings, and Sworn Statements to Close. These fees are typically $23.00 ($20.00 to the court with a $3.00 filing fee) and can add up. It's essential to keep detailed records of all expenses to ensure they are paid from the estate.

Conclusion:

Probate estate administration in Michigan comes with several fees and expenses that can impact the overall distribution of assets to beneficiaries. It is important to work closely with a knowledgeable probate attorney who can help you understand and navigate these fees, ensuring that they are reasonable and in compliance with Michigan law. If you are involved in a Michigan probate estate and have questions about fees, contact Thompson Legal to schedule a discovery call with an experienced Michigan probate lawyer. 

This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a probate lawyer about your case Contact Us at (734) 743-1646 to schedule a consultation.