Navigating Probate Costs in Tennessee
Hello, this is Brad Woodall from ProbateResource.com. I’m back again with my friend April Jackson, a probate attorney based in Nashville, Tennessee. Today, we’re discussing a common question: What if I can’t afford probate?
Probate can be expensive, and many people may not have access to $3,000, $4,000, or even $5,000 needed for the process. So, what options are available for people in this situation? It’s important to understand that sometimes probate is necessary to sell certain assets, and you can’t access the funds until the asset is sold. So, how can someone navigate this situation effectively? Let’s explore some solutions.
Attorney Fees and Reimbursement
In Tennessee, as in many other states, attorneys handling probate matters may be compensated either through a percentage of the estate or an hourly rate. Some attorneys may also require an upfront deposit. If you pay this deposit to open probate for an estate that does not belong to you, you are entitled to reimbursement before creditors are paid or distributions are made. Specifically, you can be reimbursed for any funds spent related to the estate. In certain cases, attorneys may waive or lower the deposit if they know that there are significant assets in the estate. This means they will receive payment once the house sells or when you gain access to the bank account. If you cannot afford to pay for probate, you may be eligible to file an affidavit of indigency, which can allow you to open probate without paying court costs.
Planning and Alternative Options
My favorite scenario is when I have a strategy session with a family seeking assistance with probate, and we discover that a well-implemented estate plan means they do not actually need to go through probate. This is always great news to share because it helps families save on unnecessary probate fees. I have seen cases where estates went through probate and, while in court, I wondered why the estate was even opened.
So, it’s essential to ensure that you really need to initiate probate before starting the process. A solid estate plan can help avoid the need for your family to go through probate. There are also resources available if you believe that a small estate process may be more cost-effective than full probate. Depending on the assets in the estate, there may be alternative options available. For certain assets, like vehicles, you might not need to initiate probate for the home. This approach aligns well with the way Tennessee statutes are structured.
Brad:
Affidavits and Probate Alternatives
Yes, that sounds great! We’ve created another video about airship affidavits—also known as affidavits of airship—related to transferring real estate, so be sure to check out those videos as well.
You may not need to go through probate if you’re simply trying to sell the house. Additionally, if you do need to go through probate and are incurring costs for any reason, as I’ve mentioned in previous videos, there are cases where I will pay the attorney’s deposit if I’m buying a house from my family. I’m putting my money at risk, but it’s essential to have the necessary paperwork signed to ensure that I get reimbursed for my costs once the property is sold.
A Practical Approach
Usually, if I’m working with one of my preferred attorneys, they typically agree to be paid from the settlement statement at the end of the transaction. They will send an invoice to the title company, and it will be listed as a line item on the HUD (Housing and Urban Development) statement. This way, they are paid when the property closes, and I get reimbursed for the deposit I initially made.
I have been burned by dishonest people in the past, so I require specific paperwork to protect myself in these transactions. However, in some cases, we are willing to do this. Don’t let the potential need for probate discourage you—there are ways to manage the costs and get through the process. If you know that there’s light at the end of the tunnel, with cash waiting for you like a pot of gold at the end of a rainbow, then you just need to reach it, right? And sometimes, you need a bit of money to get there. So, there are solutions available!