A messy situation exist-
I'm involved with my first probate estate. The probate attorney I spoke with said he charges the "statutory" probate fee" allowed by California. Foolishly I believed the term "statutory" meant it was non-negotiable. (I'm a tax accountant, a statutory tax rate is NOT negotiable)The probate assets total about $1.1M so the staturory fee will be about $24,000. I have signed an engagement letter with the attorney who charges the "statutory fee". I have no problem paying "reasonable" fees, but I don't think $24k of fees is reasonable now that I understand the statutory fee IS negotiable.
I have no problem with the attorney's work so far. The next step in the probate is to file a Petition for Distribution. This estate is very clean, simple, and involved no feuding heirs... estate was just a home with some bank and brokerage accounts. The home was sold in probate and the attorney charged additional "extra-ordinary" fees above the statutory fee. I realize selling the home would create additional fees. Deceased person was single with no children. Individual died intestate so probate assets will go 100% to parents.
I'm considering terminating my existing attorney, and either have a para-legal service or an attorney who will bill per hour complete the probate. How will the probate court determine how much the existing attorney should be compensated? (I agree the existing attorney should be reasonably compensated 100% for his work performed)
The next probate step is filing a Petition for Distribution (Waiver of Final Acctg will occur). Am I correct in assuming about 2/3 of the all probate work has been completed at this point? My rough estimate is the entire probate would create about 30 billing hours for the attorney.
Will the probate judge simply conclude the existing attorney should be compensated $16k (2/3 of the agreed upon $24k statutory fee), or will the judge compensate the attorney about $6k (2/3 of 30 hours x $300 per hour)?
John