Why an Estate Plan Isn’t Just for the Ultra-Wealthy

Most people assume estate planning is only necessary once you’ve reached a certain net-worth threshold. In reality, estate planning is less about how much you have and more about how efficiently—and intentionally—it gets passed on.

In California especially, failing to plan can be far more expensive and stressful than most people realize.

Without an estate plan in place, your assets may be forced through probate court, a public, time-consuming, and costly legal process. California has some of the highest probate fees in the country, and those fees are set by statute—not negotiated.

The Hidden Cost of Probate in California

In California, probate attorney fees and executor commissions are determined by California Probate Code §10800 & §10810 and are calculated based on the gross value of the estate—meaning debts and mortgages are ignored when determining fees.

As of 2025, statutory probate fees are:

• 4% of the first $100,000
• 3% of the next $100,000
• 2% of the next $800,000
• 1% of the next $9,000,000
• 0.5% of the next $15,000,000

For an estate worth $1.5 million, the statutory fee is approximately $28,000 for the probate attorney and another $28,000 for the executor.

That’s $56,000 in fees, paid before your heirs receive their inheritance—often for a process that could have been largely avoided with proper planning.

Why Having a Will Alone Is Not Enough

Many people believe that once they’ve drafted a will, they’re “covered.” Unfortunately, in California, a will does not avoid probate.

A will simply provides instructions to the probate court—it does not bypass it.

Here’s what a will alone does not do:

❌ Does not prevent probate

❌ Does not reduce statutory probate fees

❌ Does not keep your affairs private (probate is public record)

❌ Does not avoid court delays (often 9–18 months or longer)

❌ Does not provide ongoing control for minor children or dependents

In contrast, a properly funded revocable living trust allows assets to pass outside of probate, often faster, privately, and at a significantly lower cost.

The Real Risks of Not Having an Estate Plan

Beyond fees, the lack of an estate plan can create real-world problems for your family at an already difficult time:

Delays in access to funds when your family may need liquidity most

Court-appointed decisions if no clear instructions are in place

Unintended distributions under California intestate laws

Family conflict caused by unclear or outdated wishes

Increased legal costs from disputes or administrative errors

Estate planning isn’t just about asset transfer—it’s about control, clarity, and compassion for the people you leave behind.

What a Complete Estate Plan Typically Includes

A well-designed estate plan often consists of:

• A revocable living trust
• A pour-over will (as a safety net, not the primary tool)
• Durable power of attorney for financial decisions
• Advance healthcare directive
• Proper trust funding (this is the step most people miss)

Without proper funding—retitling accounts and assets into the trust—even a great trust document won’t work as intended.

Planning Ahead Is About Options, Not Fear

Estate planning isn’t about assuming the worst—it’s about preserving flexibility, reducing friction, and protecting your legacy. The cost of planning is often a fraction of the cost of inaction.

I work with Encore Estate Plans to help clients establish and properly fund estate plans at a fraction of the cost of hiring a traditional estate attorney.

If you’re unsure whether your current plan is sufficient—or if you only have a will—it may be worth revisiting before your family is forced to deal with the consequences.

If you would like to discuss your estate plan, click Book A Meeting.