A probate referee is an individual appointed by the California State Controller to serve as an officer of the court and appraise the value of assets in an estate when someone passes away. This ensures that the estate’s assets are properly evaluated for tax purposes and equitable distribution among heirs. A probate referee is an impartial, independent professional with expertise in appraising various types of assets, including real estate, stocks, bonds, and personal property.
Purpose of a Probate Referee: Ensuring Accurate Asset Valuation
The primary duty of this role 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 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 Involving a Probate Referee
Unless waived by the court, this step applies to all probate proceedings before the court. Upon receipt of the assignment, the appraisal must be completed within 60 days. After that, 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.
How a Probate Referee Is Assigned
Probate referees are not chosen by the estate or its attorney. The State Controller maintains an approved list of referees for each California county, and the court assigns one to each case through a rotating appointment, reflected on Judicial Council Form DE-140. The completed appraisal itself is submitted on Judicial Council Form DE-160, the Inventory and Appraisal, which becomes part of the court record for the estate.
When Trustees Can Use a Probate Referee
Trustees are also authorized by statute to use these services for non-court appraisals. This can save both time and money, since a single referee can appraise more than one type of property, avoiding the need to hire individual fee appraisers for each asset class. Referees are appointed in every county in the state, and one in a given county can utilize the services of colleagues in the counties where out-of-area property is located. Using this independent option also relieves the estate representative, trustee, conservator, guardian, or attorney of the responsibility, and potential liability, of determining estate valuations personally.
Probate Referee Fees
Under Probate Code Section 8961, the referee’s compensation is set by statute at one-tenth of one percent (0.1%) of the total appraised value of the property. Reasonable expenses like mileage and photographs may also be charged. The minimum fee is currently set at $75, with a maximum capped at $10,000 per estate. Outside of formal probate, in trustee situations, these fees are negotiable and compare favorably with the fees charged by independent fee appraisers.
Conclusion
These valuations are widely accepted by both judges and the Internal Revenue Service as independent, objective, fair, and accurate. Using this independent appraisal process relieves the estate representative, trustee, conservator, guardian, or attorney of the responsibility of determining estate valuations personally, which is one reason the role remains a standard part of California probate administration.
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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 service. You should consult the proper legal or professional advisor knowledgeable in the area that pertains to your particular situation.
