Many families assume that when someone passes away, their assets will automatically transfer to loved ones without much expense. In reality, several hidden or unexpected costs can significantly reduce the value of an estate before beneficiaries ever receive their inheritance.
Understanding these costs helps families plan ahead, preserve more wealth, and avoid surprises during the probate process. Here are the three biggest costs that diminish the value of an estate, especially under Georgia law.
1. Probate Costs and Court Fees
Probate is the court-supervised process of validating a will, paying debts, and distributing assets. While Georgia has a more streamlined probate system compared to other states, the process still comes with expenses.
Typical probate-related costs include:
- Court filing fees
- Executor or administrator fees
- Attorney fees
- Costs for required notices and publications
- Appraisal fees for real estate or personal property
- Bond fees (if required by the court or not waived in the will)
These costs can reduce an estate’s value by thousands of dollars, especially if the estate is complex or contested.
Why probate gets expensive:
- Disputes among heirs
- Missing or unclear estate documents
- Property that needs appraisals or sales
- Creditors filing claims
- Assets spread across multiple states
Families can reduce probate costs by using planning tools such as revocable living trusts, transfer-on-death designations, and properly updated wills. Learn more about probate options at our Georgia Probate Lawyer page.
2. Taxes and Final Expenses
While Georgia does not impose a state estate tax, there are still significant costs tied to taxes and final obligations.
Common expenses include:
- Final income tax return preparation
- Federal estate tax (for larger estates)
- Capital gains taxes on certain asset sales
- Property taxes owed at death
- Outstanding medical bills
- Funeral and burial expenses
- End-of-life care costs
Medical and end-of-life costs alone can quickly reduce the value of an estate. Even moderate estates can be impacted if the decedent required long-term care or if substantial medical bills remain unpaid.
A well-structured estate plan can minimize taxes and final expenses through trusts, strategic gifting, and proper asset titling. Our Estate Planning Services can guide families on tax-efficient strategies.
3. Long-Term Care and Elder Care Costs
The biggest and most overlooked expense that drains estates is long-term care. Nursing homes and assisted living facilities can cost between $70,000 and $100,000+ per year in Georgia. Many families expect Medicare to cover these expenses, but Medicare only pays for limited skilled care — not long-term custodial care.
When long-term care isn’t planned for, estates are often depleted by:
- Private pay nursing home costs
- Memory care or dementia care
- In-home caregiver expenses
- Assisted living monthly fees
- Home modifications for aging adults
These costs can wipe out savings and significantly reduce what heirs receive. Families can protect assets with tools such as:
- Medicaid planning
- Irrevocable trusts
- Long-term care insurance
- Early asset transfers
- Strategic spend-down planning
Planning ahead helps preserve wealth and avoid forcing a family to spend down the estate to qualify for Medicaid. To learn more about asset protection strategies, visit our Trusts & Estate Planning page.
How to Protect Your Estate From Value Loss
While some expenses are unavoidable, proactive planning can significantly reduce estate shrinkage. Consider:
- Creating or updating a will regularly
- Using trusts to avoid probate
- Naming beneficiaries on accounts
- Planning for long-term care early
- Reviewing life insurance coverage
- Keeping financial and legal documents organized
- Working with an experienced estate planning attorney
A well-structured plan protects your legacy and ensures more of your assets go to the people you care about.
Final Thoughts
Probate fees, taxes and final expenses, and long-term care costs are the three biggest factors that diminish the value of an estate. Fortunately, with the right legal planning, families can reduce these costs and preserve wealth for future generations.
If you want to protect your estate and minimize unnecessary expenses, our attorneys at Hurban Law can help you create a plan tailored to Georgia law and your family’s needs.
