Probate Referee California: What They Do & Why You Need One

"The court appointed a probate referee to appraise my father's estate. What does this mean and how much will it cost?"

As a Glendale probate attorney, I explain probate referees to every client because they're a mandatory—and often misunderstood—part of California probate. Probate referees are court-appointed appraisers who determine the fair market value of estate assets for the official inventory.

Understanding what probate referees do, why they're required, how much they cost (0.1% of appraised value), and how their valuations affect probate helps executors navigate this required step.

This comprehensive guide explains everything about California probate referees: their role, appointment process, what assets they appraise, how appraisals are conducted, fees, timeline, challenging appraisals, and how valuations impact probate costs and taxes.

What Is a Probate Referee?

California Probate Code Sections 8900-8929

Probate referee: A professional appraiser appointed by the court to determine the fair market value of estate assets for probate purposes.

Purpose of Probate Referees

Required for:

• Completing inventory and appraisal (Form DE-160)
• Establishing official estate value
• Calculating statutory probate fees
• Determining estate tax liability
• Setting minimum sale prices for real property

Why court-appointed:

• Ensures independent, unbiased valuations
• Protects beneficiaries from undervaluation
• Protects creditors from overvaluation
• Provides official values for legal purposes

Who Can Be a Probate Referee

Requirements:

Qualifications (California Probate Code Section 8901):

• Designated by court as probate referee for that county
• Qualified by education and experience
• Covered by fidelity bond
• Good moral character
• Not related to case parties

Cannot serve if:

• Interested in estate
• Related to decedent, executor, or beneficiaries
• Has conflict of interest

When Are Probate Referees Required?

Mandatory Appointment

Probate referee required in all formal probate proceedings in California.

Exception: Small estate procedures (under $184,500) don't require probate referee.

Timing of Appointment

Appointed early in probate:

1. Executor files petition for probate
2. Court grants petition and issues letters
3. Court appoints probate referee at same time
4. Referee notified of appointment

Executor doesn't choose - court assigns referee.

What Triggers the Appraisal

Within 4 months of letters issued:

Executor must:

• File inventory and appraisal (Form DE-160)
• List all estate assets
• State values for certain assets
• Send inventory to probate referee for appraisal

Referee appraises assets requiring appraisal (not all assets).

What Do Probate Referees Appraise?

Assets Referee DOES Appraise

Real property:

• Houses, condos, land
• Commercial property
• Rental property
• Undeveloped land
• Out-of-state real property

Personal property:

• Vehicles (cars, boats, RVs, motorcycles)
• Business interests
• Partnership interests
• Stock in closely-held corporations
• Tangible personal property (furniture, jewelry, art, collectibles)
• Machinery and equipment
• Intellectual property rights

Generally: Assets without readily ascertainable values.

Assets Referee Does NOT Appraise

Executor states values (not referee):

Cash assets:

• Bank account balances (as of date of death)
• Certificates of deposit
• Money market accounts

Publicly traded securities:

• Stocks listed on major exchanges
• Bonds
• Mutual funds
• Value: Mean between high/low on date of death

Life insurance:

• If payable to estate
• Value: Policy proceeds

Retirement accounts:

• If payable to estate (rare)
• Value: Account balance at death

Accounts with POD/TOD:

• Usually don't go through probate
• Not included in probate inventory

Why executor values these: Values are readily ascertainable from statements or published prices.

The Appraisal Process

Step 1: Executor Prepares Inventory

Executor completes Inventory and Appraisal form (DE-160):

Lists all assets:

• Real property (addresses)
• Personal property (descriptions)
• Cash and securities (with values)
• Business interests
• Other assets

Executor states values for cash, publicly traded securities, and cash equivalents.

Leaves blank values for assets requiring referee appraisal.

Step 2: Executor Sends Inventory to Referee

After listing assets:

• Send copy of inventory to appointed probate referee
• Include property addresses for inspection
• Provide access for referee to inspect property
• Include relevant documents (deeds, business records, etc.)

Timeline: Should send promptly to meet 4-month filing deadline.

Step 3: Referee Conducts Appraisals

Referee's process:

For real property:

• Reviews county records
• May conduct site inspection
• Reviews comparable sales
• Considers condition, location, market
• Determines fair market value as of date of death

For personal property:

• Inspects items if necessary
• Reviews market data
• Considers condition, age, demand
• Determines fair market value

For business interests:

• Reviews financial statements
• Analyzes business operations
• Considers market multiples
• May engage business valuation expert

Standard: Fair market value on date of death (price willing buyer would pay willing seller).

Step 4: Referee Completes Appraisal

Referee fills in values on inventory form for appraised assets.

Signs under penalty of perjury.

Returns completed form to executor.

Timeline: Usually 1-3 weeks after receiving inventory.

Step 5: Executor Files Inventory with Court

Executor files completed Inventory and Appraisal with probate court.

Must be filed within 4 months of letters being issued.

Includes:

• All assets listed
• Executor's values for certain assets
• Referee's appraisal values for other assets
• Total gross estate value

Probate Referee Fees

California Probate Code Section 8960

Fee Structure

Referee compensation: 0.1% (one-tenth of one percent) of total appraised value

Calculated on: Gross value of property appraised by referee (not entire estate)

Examples:

• Property appraised at $500,000 = $500 fee
• Property appraised at $1,000,000 = $1,000 fee
• Property appraised at $2,000,000 = $2,000 fee

Who Pays Referee Fees

Paid by estate before distribution to beneficiaries.

Executor responsibility to ensure payment.

Timing: Paid after referee completes appraisal.

Minimum and Maximum Fees

Minimum fee: None statutory, but referees typically charge minimum (e.g., $250-$500)

Maximum fee: 0.1% of appraised value (no statutory cap above percentage)

What's NOT Included in Standard Fee

Additional charges possible for:

• Out-of-county property inspection
• Extraordinary services
• Complex valuations requiring special expertise
• Multiple property locations

These require court approval if exceeding standard 0.1%.

How Referee Valuations Affect Probate

1. Statutory Probate Fees

Executor and attorney fees calculated based on gross estate value.

Higher appraisals = Higher fees

Example:

• House appraised at $900,000 vs. $1,100,000
• Difference: $200,000
• Impact on fees: $200,000 × 2% = $4,000 additional executor fees + $4,000 additional attorney fees = $8,000 total

Beneficiaries may have interest in lower appraisals. Executor/attorney may have interest in higher appraisals (more fees).

Referee's duty: Independent, accurate valuation regardless of fee impact.

2. Minimum Sale Price for Real Property

If real property sold during probate:

Without IAEA authority:

• Court confirmation required
• Minimum acceptable offer: 90% of appraised value

Example:

• House appraised at $1,000,000
• Cannot accept offer below $900,000 without court approval

Higher appraisal = Higher minimum sale price

3. Estate Tax Threshold

Federal estate tax exemption: $13.61 million (2024)

Accurate valuation necessary for estates approaching threshold.

California: No state estate tax

4. Basis Step-Up for Beneficiaries

Beneficiaries receive property with basis stepped up to date of death value.

Higher appraisal = Higher basis = Lower capital gains tax when beneficiaries eventually sell

This usually benefits beneficiaries.

Challenging Probate Referee Appraisals

When to Challenge

Consider challenging if:

• Appraisal significantly differs from market value
• Referee didn't inspect property
• Referee lacked expertise for asset type
• Recent sale price differs substantially
• Other appraisals show different value

How to Challenge

Process:

1. Obtain independent appraisal

• Hire separate professional appraiser
• Get written appraisal report
• Must be credible and well-supported

2. File objection with court

• Petition objecting to referee appraisal
• Provide independent appraisal
• Explain why referee's value is incorrect

3. Court hearing

• Present evidence
• Referee may defend appraisal
• Judge determines correct value

Burden: Party challenging appraisal must prove referee's value is incorrect.

Supplemental Inventory

If assets discovered after original inventory:

File supplemental inventory and appraisal:

• Lists newly discovered assets
• Sent to probate referee for appraisal
• Filed with court
• Additional referee fee applies

Special Situations

Out-of-State Property

California probate referee appraises out-of-state real property for California probate.

May rely on:

• Local appraisals
• Market data from property state
• Remote valuation methods

Separate ancillary probate may be required in property's state.

Complex Business Valuations

Closely-held businesses may require:

• Business valuation expert
• Financial analysis
• Goodwill assessment
• Multiple valuation methods

Referee may:

• Engage business valuation specialist
• Charge additional fees (with court approval)
• Request business records from executor

Property Sold Before Inventory

If property sold between death and inventory:

Two values possible:

1. Fair market value at death (what referee appraises)
2. Actual sale price (what property sold for)

Referee uses date-of-death value, not sale price.

Sale price used only if sale was arm's length transaction close to death date.

Date of Death vs. Alternate Valuation

Standard: Date of death valuation

Alternate valuation date: Six months after death (for estate tax purposes only)

Probate referee uses date of death for probate inventory.

Working With Probate Referees

Executor's Responsibilities

To facilitate appraisal:

Provide information:

• Property addresses
• Access to inspect property
• Relevant documents (deeds, financial statements)
• Answer referee's questions

Coordinate timing:

• Send inventory promptly
• Allow time for appraisal before 4-month deadline
• Arrange property access

Don't:

• Try to influence valuation
• Withhold information
• Pressure referee for certain value

Communication

Appropriate contact:

• Provide factual information
• Answer questions about property
• Coordinate logistics

Inappropriate contact:

• Suggesting specific values
• Offering inducements
• Threatening referee

Referee is independent and owes duties to court, not parties.

Frequently Asked Questions

Can executor choose the probate referee?

No. Court appoints probate referee from list of qualified referees in that county. Assignment is usually rotating.

How long does probate referee appraisal take?

Typically 1-3 weeks after referee receives inventory, depending on complexity and number of properties to appraise.

What if executor disagrees with appraisal?

Executor can file objection with court and present independent appraisal showing different value. Court decides.

Does referee physically inspect property?

For real estate, referee usually conducts exterior inspection and may inspect interior. For personal property, referee inspects if necessary.

Can referee appraisal be used for selling property?

Referee appraisal establishes baseline value. For sales, executor may want additional current market appraisal from real estate agent.

What if property value changed significantly since death?

Referee uses date-of-death value regardless of subsequent changes. Current market value matters for sales but not inventory.

Are probate referee fees negotiable?

No. Fee is set by statute at 0.1% of appraised value. Court must approve any additional fees.

Related Articles

Learn more about California probate:

• How Much Does Probate Cost in California? - Probate referee fee is one component of total probate costs.

• California Executor Duties & Responsibilities - Filing inventory and appraisal is key executor duty.

• How Long Does Probate Take in California? - Inventory must be filed within 4 months.

• Probate Real Estate California - Referee appraisals establish value for property sales.

• How to File Probate in Los Angeles County - Probate referee appointed early in process.

Get Help With Probate Inventory and Appraisal

Meeting the 4-month inventory deadline and properly coordinating with the probate referee is critical to keeping your probate case on track. Missing this deadline can delay the entire probate.

Call (818) 291-6217 to schedule a consultation at my Glendale office, or complete our probate questionnaire to discuss your probate case.

As a California probate attorney serving Los Angeles County, I guide executors through the inventory and appraisal process, coordinate with probate referees, ensure deadlines are met, and challenge appraisals when necessary to protect estate and beneficiary interests.

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About the Author

Rozsa Gyene (State Bar No. 208356) is a California estate planning and probate attorney serving Glendale, Burbank, Pasadena, and throughout Los Angeles County. With extensive experience navigating the probate referee appraisal process, Rozsa ensures executors meet critical deadlines and estate assets are properly valued.

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Disclaimer: This article provides general information about California probate referees and should not be construed as legal advice. Every situation is unique. Laws, procedures, and fees change, and this article reflects California law as of January 2025. Consult with a qualified California probate attorney about your specific circumstances.