Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.
Detailed Answer
When someone passes away in New Mexico, administering their estate involves a variety of expenses. Understanding these factors helps families budget and plan. Below are key components that typically affect the total cost:
1. Court and Filing Fees
Probate proceedings require filing petitions and other documents with the district court. Fees vary by county but generally include:
- Probate petition filing fee
Reference: NMSA 1978, § 45-3-701 - Miscellaneous docketing and certification fees
2. Executor (Personal Representative) Commissions
New Mexico law allows the personal representative to receive a commission for estate administration. The amount is either agreed upon by heirs or set by statute:
- Up to 3% on the first $200,000 of probate assets, 2% on the next $800,000, and 1% on amounts above $1 million.
Reference: NMSA 1978, § 45-3-702 - Heirs can petition the court to adjust the commission if duties exceed normal scope.
3. Attorney Fees
Attorneys typically charge either:
- A flat fee agreed in advance
- An hourly rate (often $150–$350/hour depending on experience and region)
- A percentage of estate assets (commonly 1%–4%)
Any fee arrangement must be reasonable under NMSA 1978, § 45-3-703.
4. Publication and Notice Costs
Newspapers often charge to publish required notices to creditors and heirs. Costs depend on word count and number of insertions.
5. Appraisal and Valuation Fees
Courts require accurate valuations for real estate, business interests, and personal property. Appraisers charge fees based on complexity and asset type.
6. Bond Premiums (If Required)
If the decedent’s will or beneficiaries demand, the personal representative may post a fiduciary bond to protect the estate. Premiums run 0.5%–1.5% of the bond amount annually. See NMSA 1978, § 45-5-301.
7. Tax Preparation and Accounting
Estate tax returns, final income tax returns, and ongoing trust tax filings often require a CPA or tax professional. Fees vary by complexity.
Helpful Hints
- Obtain multiple quotes from attorneys and appraisers before committing.
- Ask if attorney fees can be capped or billed in phases.
- Review your loved one’s will for fee waivers or special instructions on commissions.
- Check county clerk websites for current probate filing fees.
- Maintain detailed records of all estate-related expenses for transparency.