A family in Brooklyn recently came to my office. Their father had passed away, leaving behind a straightforward will and a paid-off brownstone. They assumed settling his estate would involve a simple court filing and a few signatures. They were shocked when I explained that the process, known as probate, would likely take the better part of a year and that the costs would be far more than a filing fee.
This is a conversation I have often. Most people understandably focus on the emotional weight of losing a loved one, not the administrative and financial machinery that clicks into gear afterward. The public perception of probate is that it’s a formality. The reality is a court-supervised process with very real costs—not just in dollars, but in time and family harmony.
The Statutory Costs: Filing Fees and Executor Commissions
When an executor submits a will to the Surrogate’s Court for probate, the process begins with predictable, mandated costs. The first is the court filing fee. This isn’t a nominal amount; it’s calculated on a sliding scale based on the gross value of the probate estate. Under Surrogate’s Court Procedure Act (SCPA) §2402, an estate valued at $500,000 or more incurs a filing fee of $1,250. This is merely the cost of admission.
The more substantial statutory cost is the executor’s commission. This is not a fee the executor can choose to take—it is their legal right to compensation for their work as a fiduciary. In New York, these commissions are set by statute on a sliding scale:
- 5% on the first $100,000 of the estate
- 4% on the next $200,000
- 3% on the next $700,000
- 2.5% on the next $4,000,000
- 2% on any amount above $5,000,000
For a $1 million estate, the executor’s commission alone would be $34,000. For an estate with multiple executors, each may be entitled to a full commission. While a family member serving as executor might waive this fee, they are not required to. If a bank or professional is named, they will take their commission. This is often the single largest expense in a probate proceeding, and it comes directly out of the assets intended for the beneficiaries.
The Professional Costs: Attorneys, Appraisers, and Accountants
An executor has a fiduciary duty to administer the estate properly. This means marshalling assets, paying the decedent’s final debts and taxes, and distributing the remainder to the heirs. Fulfilling this duty almost always requires hiring professionals, and those fees are paid by the estate.
First are the attorney’s fees. The executor’s attorney guides them through the court process, prepares legal documents, and provides counsel on fiduciary responsibilities. These fees must be “reasonable” in the eyes of the court and depend on the estate’s complexity. A simple probate might involve a flat fee, but one with business assets, out-of-state property, or creditor claims will require significantly more legal work, typically billed hourly.
Next are appraisers and accountants. If the estate includes hard-to-value assets like real estate, a business interest, or a collection of fine art, a formal appraisal is necessary. An accountant prepares the decedent’s final income tax returns and the estate’s fiduciary income tax returns. For larger estates, a CPA is essential for preparing and filing federal and New York estate tax returns.
These professional services are not optional. They are necessary for the executor to do their job correctly and protect themselves from personal liability. Each one adds a layer of expense that depletes the estate.
The Hidden Costs: Time and Conflict
The most damaging costs of probate are often the ones that do not appear on a balance sheet. The first is time. Even the most straightforward probate in Manhattan Surrogate’s Court can take nine to twelve months from start to finish. During this time, assets are effectively frozen. A house cannot be sold, and investment accounts cannot be distributed until the court grants the executor the authority to act.
This delay creates a vacuum that can be filled with anxiety and disagreement. Because probate is a public process, the will becomes a public document. Disappointed heirs can see exactly who received what. This transparency can invite will challenges, disputes over the executor’s decisions, or arguments about asset valuation. A will contest can stretch the probate process for years, with legal fees spiraling and eroding the family’s inheritance and relationships.
This is the ultimate cost of probate: it diverts a family’s energy from grieving and stewardship to court procedure and conflict. A well-designed estate plan—often using trusts to hold primary assets—is built to avoid this very outcome. It keeps a family’s affairs private and out of the court system, minimizing the costs of time, money, and discord.
Understanding these potential costs is the first step toward intentional planning. If you are currently named as an executor in a will or are considering how to structure your own estate, a prudent step is to conduct a clear-eyed review of the assets involved. We can provide a framework for this review to help you anticipate the road ahead.
