A family in Brooklyn receives the first accounting from the executor of their father’s estate, and the number is a shock. They see fees for the court, a large commission for the executor, and substantial legal bills. They understood there would be costs, but they never realized that settling a loved one’s affairs would consume such a significant portion of the inheritance. This is a conversation I have far too often.
When an estate goes through probate, the process is public and supervised by the Surrogate’s Court. It involves several layers of mandatory and professional fees. These are not hidden charges, but they are frequently misunderstood by grieving families. The total cost is not a single number but a combination of distinct expenses, each with a different purpose.
The Court’s Price: Filing Fees
The first cost is paid directly to the state. The Surrogate’s Court requires a filing fee to initiate a probate proceeding. This is not a nominal charge for paperwork; it is a sliding scale based on the gross value of the assets passing through the estate. The fee schedule is laid out in New York law, specifically in the Surrogate’s Court Procedure Act (SCPA) § 2402.
For a small estate, the fee might be a few hundred dollars. For an estate valued at $500,000 or more, the filing fee is $1,250. While this may seem small relative to the estate’s size, it is only the first of several costs. This fee is the non-negotiable price of entry to the probate process, required before any work of marshalling assets or paying heirs can begin.
The Executor’s Commission: Compensation for a Fiduciary
Perhaps the most misunderstood cost is the executor’s commission. An executor—or an administrator if there was no will—is the individual or institution legally responsible for managing the estate. This is not a simple task. It involves identifying and gathering assets, paying the decedent’s final bills and taxes, managing property, and ultimately distributing the remainder to the rightful heirs.
For this significant legal responsibility—this fiduciary duty—New York law provides for compensation. The executor is entitled to a statutory commission, calculated as a percentage of the “commissions base,” which includes most assets of the estate. The percentages are set by statute:
- 5% on the first $100,000
- 4% on the next $200,000
- 3% on the next $700,000
- 2.5% on the next $4,000,000
- 2% on all amounts above $5,000,000
On a $1 million estate, the executor’s commission alone would be $34,000. While a family member serving as executor can choose to waive this fee, a professional or institutional executor will not. It is the payment for their time, expertise, and the legal liability they assume. It is also a significant driver of the total cost of probate.
Professional Guidance: The Role of an Attorney
Most executors, especially those who are not legal or financial professionals, hire an attorney to guide the estate through Surrogate’s Court. The court system has its own language, deadlines, and procedures; a mistake can be costly and time-consuming. Attorney’s fees are paid from the estate’s assets and are separate from the executor’s commission.
The fee structure for legal services can vary. Some attorneys charge by the hour, while others may charge a percentage of the estate’s value or a flat fee for more straightforward administrations. At our firm, we believe the fee should reflect the actual work required, not just a percentage of the assets. A $2 million estate composed of a single brokerage account is far simpler to administer than a $500,000 estate with a family business, real estate, and creditor disputes.
A prudent attorney’s work is not an expense but a protection for the estate. Our role is to see that creditor claims are properly handled, tax filings are correct, and distributions are made according to the law. This work shields the executor from personal liability and the heirs from future conflicts.
Planning Is the Only Control You Have
These fees—for the court, the executor, and the attorneys—are largely unavoidable once an estate enters probate. The time to manage these costs is not after a death, but years before, through intentional estate planning. A properly funded revocable living trust, for instance, can bypass probate entirely for the assets it holds, eliminating both the court filing fees and the basis for executor’s commissions on those assets.
If you are concerned about how these costs might impact the legacy you intend to leave, the next step is to get a clear picture of your own situation. I invite you to schedule a consultation where we can conduct an asset review. We will map out what you own, how it is titled, and which assets would be exposed to the costs and delays of the probate process.
