Probate referees are individuals appointed by the California State Controller as an officer of the court to appraise and determine the value of assets in an estate when someone passes away. This ensures that the assets are properly evaluated for tax purposes and equitable distribution among heirs. Probate referees are impartial and independent professionals with expertise in appraising various types of assets like real estate, stocks, bonds, and personal property.
Purpose:
The primary duty of a probate referee is to appraise and provide a fair market value for the assets within an estate. The referee examines documentation, reviews the market, and sometimes physically inspects the property to determine its value. After appraising the assets, the probate referee prepares a detailed report, often called an “Inventory and Appraisal” report which lists each asset and its appraised value. The report is submitted to the probate court and is used in calculating estate taxes, determining the value of the estate for distribution to heirs, and resolving any disputes that may arise among beneficiaries.
Court Proceedings:
Unless waived by the Court, a probate referee will be used in all probate proceedings before the Court.
Upon receipt of the Inventory and Appraisal, the probate referee is required to complete the appraisals within 60 days. After which, the Inventory and Appraisal must be filed with the Court no later than four months after the court issues Letters Testamentary or Letters of Administration.
Living trust:
By statutes, Trustees are authorized to use the services of a probate referee non-Court appraisals. This could save both time and money as a probate referee can evaluate more than one type of property, thereby avoiding the need for individual fee appraisers. Additionally, probate referees are appointed in every county in the State, one referee can utilize the services of other referees in the counties where the property is located. The use of independent Probate Referees relieves the estate representative, trustee, conservator, guardian, or attorney from the responsibility (and potential liability) of determining estate valuations.
Fees:
California has established statutory fees based on the appraised value of the estate assets in the amount of .01%. Additionally, probate referees are allowed to charge for expenses like mileage and photographs. The minimum fee is currently set at $75 with the maximum capped at $10,000. In Trust situations, Probate Referee fees are negotiable and compare favorably with charges made by “fee” appraisers.
Note:
Probate referee values are widely accepted by both judges and the Internal Revenue Service, as being independent, objective, fair, and accurate. The use of independent Probate Referees relieves the estate representative, trustee, conservator, guardian, or attorney from the responsibility of determining estate valuations.
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Disclaimer: Every situation is different and particular facts may vary thereby changing or altering a possible course of action or conclusion. The information contained herein is intended to be general in nature as laws vary between federal, state, counties, and municipalities and therefore may not apply to any given matter. This information is not intended to be legal advice or relied upon as a legal opinion, course of action, accounting, tax, or other professional services. You should consult the proper legal or professional advisor knowledgeable in the area that pertains to your particular situation.
