The cost of succession, also known as probate administration, will vary based on many different factors inside the estate. Likewise, the amount of work that an executor or appointed personal representative has to take on in the process of closing out an estate can be substantial.
Succession costs for larger estates that require full administration can range anywhere from $5000 to $15000 depending on what needs to be done. This also does not include the additional time, energy and money expended when estate disputes arise because of the significant involvement that will be required on behalf of the personal representative to resolve these disputes.
Understanding Executor Fees
If administration of the estate is necessary in Louisiana, the court will appoint an administrator or executor to handle this process. As a Louisiana executor fees lawyer can tell you, this person deserves to be compensated for their job and there are core guidelines that allow this to happen.
It might come as a surprise to you that an executor can eb paid before speaking to an executor fees lawyer in Louisiana but this is a job with a great deal of tasks and a lot of responsibility and personal liability as well. Executors or administrators in Louisiana are eligible to seek compensation in the amount of 2.5% of the value of the total estate. In some cases a family member might be serving in the role of executor and may choose to waive their fee at their own discretion. However, if the executor in the estate you are associated with has chosen not to waive their fee, they do have the right to receive payment for what they did.
Problems With Executor Fees
As an executor fees attorney in Louisiana can tell you, some of the problems surrounding executor fees include lack of clarity on the executor’s part about how to receive this compensation, and concerns from beneficiaries when they believe that an executor has mishandled the inventory of the estate leading to improper payment of executor fees.
Executors take on a great deal of responsibility when being appointed in this role. They will have to post a bond in order to be appointed because this bond protects the creditors and the heirs in the event that mismanagement happens.
Bond required under Louisiana law is usually 1.5 times the value of the estate. There are some situations in which the court can exercise their discretion to reduce this bond and when there are other safeguards present to protect creditors and heirs. The bond fee highlights the importance of the personal liability that an executor brings to the table. The executor has to handle many different aspects of probate, including gathering all of the assets, notifying creditors and determining which creditors are entitled to receive assets or payments from the estate, and handling the filing of any estate tax returns and probate disputes that occur along the process and filing final accountings and distributing any remaining assets to the beneficiaries. There may be additional costs and expenses necessary to carry out the conclusion of an estate in Louisiana. Hiring a knowledgeable executor fees attorney in Louisiana will give you the best possible perspective on what it takes to go through probate and how to avoid many of the most common pitfalls.
There are many different things to keep in mind whether you are a beneficiary of an estate or a recently appointed executor. Scheduling a consultation with a Louisiana executor fees attorney will give you a better perspective on all of these complex issues and help you to craft a plan that will minimize problems that can delay the administration of an estate. Since there are so many different people that can be impacted by the administration of the estate, it is important to have legal representation early on.