Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice regarding your specific situation.
Detailed Answer
In New Hampshire, the total cost of administering an estate varies based on multiple factors. A clear understanding of these elements helps personal representatives plan and manage expenses efficiently.
1. Estate Size and Complexity
Larger estates often incur higher costs. Estates with diverse assets—such as real estate, business interests, retirement accounts, and stock portfolios—require appraisals, tax filings, and specialized expertise.
2. Personal Representative Compensation
Under RSA 556:17, a fiduciary may claim commissions based on a tiered schedule:
- 5% on the first $100,000
- 4% on the next $200,000
- 3% on the next $700,000
- 2% on amounts over $1,000,000
See RSA 556:17 for details: RSA 556:17.
3. Court Filing and Publication Costs
Filing probate petitions and inventories in Superior Court involves statutory fees established by the Judicial Branch fee schedule. Additionally, RSA 561:2 requires notices to creditors by publication, which incurs newspaper charges: RSA 561:2.
4. Bond Premiums
A bond protects estate assets against mismanagement. Unless waived by the will or beneficiaries, RSA 551:2 mandates a fiduciary bond. Premiums vary with bond amount and insurer rates: RSA 551:2.
5. Professional Fees
Appraisers, accountants, real estate agents, and auctioneers charge for their services. Complex assets such as closely held businesses or artwork require specialized valuation.
6. Tax Preparation and Filing
Federal estate tax may apply if the gross estate exceeds the federal exemption. Although New Hampshire has no estate tax, executor fees, final income tax returns, and any federal fiduciary income tax returns add to costs.
7. Ancillary Probate
If decedent owned property in other states, ancillary proceedings add filing fees, additional bonds, and counsel fees in each jurisdiction.
8. Accounting and Record-Keeping
Courts may require periodic accountings. Preparing these reports—often with attorney or accountant assistance—generates additional charges.
Helpful Hints
- Obtain multiple quotes for appraisal and publication services.
- Review the will to see if it waives bond requirements.
- Keep detailed records of all estate transactions to streamline accountings.
- Discuss fee arrangements with an attorney—some accept flat fees or hourly billing.
- Consider whether ancillary probate is necessary for out-of-state assets.
- Plan for federal estate tax filings if the estate approaches the exemption threshold.