Estate Planning Calculator
Calculate estate planning costs and distribution amounts
Additional Information and Definitions
Real Estate Value
Market value of residential, commercial, and investment properties. Get professional appraisals for unique or high-value properties. Consider recent comparable sales.
Investments Value
Include stocks, bonds, mutual funds, CDs, and retirement accounts. Note that IRAs and 401(k)s may have different tax implications for beneficiaries.
Cash and Bank Accounts
Sum of checking, savings, money market accounts, and physical cash. Include digital assets like cryptocurrency. Document account locations and access methods.
Personal Property Value
Estimate fair market value of vehicles, jewelry, art, collectibles, and household items. Consider professional appraisals for valuable items.
Life Insurance Proceeds
Death benefit amount from all life insurance policies. Only include if the estate is the beneficiary, not if paid directly to individuals.
Total Debts
Include mortgages, loans, credit cards, medical bills, and taxes owed. These are subtracted after fees are calculated on gross estate value.
Probate Fee Rate
Court-mandated percentage fee based on gross estate value. Varies by jurisdiction, typically 2-4%. Applied before debt reduction.
Executor Fee Rate
Compensation rate for estate administrator. Usually 2-4% of gross estate. Can be waived if executor is a beneficiary.
Legal Fee Rate
Attorney fees for estate administration. Typically 2-4% of gross estate value. May be higher for complex estates or litigation.
Number of Beneficiaries
Count only primary beneficiaries receiving direct distributions. Exclude contingent beneficiaries or those receiving specific bequests.
Estimate Your Estate Costs
Calculate probate fees, executor fees, and beneficiary distributions
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Understanding Estate Planning Terms
Key terms to help you understand estate planning and probate costs
Gross Estate Value:
Total value of all assets before any deductions. This is the base amount used to calculate probate, executor, and legal fees, even if debts later reduce the estate value.
Probate Fees:
Court-mandated fees calculated as a percentage of the gross estate value. These fees are charged regardless of estate debts and must be paid before distributions.
Executor Fees:
Compensation for the person managing the estate, calculated on gross estate value. Includes tasks like inventorying assets, paying bills, filing taxes, and distributing property.
Base Fees:
Fixed costs including appraisal ($500) and accounting ($1,000) fees. These apply whenever there are assets to process, regardless of estate value or debts.
Net Estate Value:
Final amount available for distribution, calculated by subtracting both debts and all fees from the gross estate value. May be negative if debts and fees exceed assets.
Per Beneficiary Amount:
Net estate value divided equally among beneficiaries. Assumes equal distribution; actual amounts may vary based on will provisions or state laws.
Tax Implications:
Different assets may have varying tax consequences for beneficiaries. Retirement accounts often trigger income tax, while inherited stocks may receive a stepped-up basis. Consider tax planning in asset distribution.
5 Estate Planning Strategies That Could Save Your Heirs Thousands
Proper estate planning can significantly reduce costs and taxes while ensuring your wishes are carried out efficiently.
1.Understanding Fee Calculations
Estate fees are typically calculated on the gross value of assets before debt reduction. This means even estates with significant debts may face substantial fees based on their total asset value.
2.The Living Trust Strategy
Assets held in a living trust bypass probate entirely, avoiding court fees and reducing administration costs. Consider this for estates with significant real estate or business assets.
3.Beneficiary Designations
Life insurance and retirement accounts with proper beneficiary designations transfer outside probate. This reduces the gross estate value used for fee calculations.
4.Managing Estate Debts
5.Professional Fee Negotiation
While base fees are often fixed, executor and legal fee percentages may be negotiable. Consider discussing fee structures with professionals before estate administration begins.