Key Takeaways
- A probate referee is a neutral appraiser, appointed by the court, who values most of an estate’s non-cash assets.
- The representative values cash-type assets; the referee values real estate, business interests, securities, and personal property.
- The referee’s fee is set by statute at one-tenth of one percent (0.1%) of the value appraised, subject to a $75 minimum and $10,000 maximum.
- On a $1,000,000 estate, that’s roughly $1,000.
- The referee provides an independent valuation, which protects the estate and the beneficiaries.
Who the Probate Referee Is
When you read about probate, the “probate referee” can sound like a judge or a courtroom official. They’re not. A probate referee is a neutral, court-appointed appraiser — a valuation professional whose job is to put a fair, independent value on the estate’s assets as of the date of death.
California uses probate referees so that the valuations driving an estate don’t simply come from the personal representative, who has an interest in the outcome. The referee is an arm’s-length third party appointed to the case, which gives the court, the beneficiaries, and the tax authorities a valuation they can rely on.
What the Referee Values — and What They Don’t
The valuation work is divided:
- The personal representative values the easy, cash-type assets — bank accounts, money, and similar items whose value isn’t in question.
- The probate referee values everything else: real estate, business interests, closely held stock, securities that aren’t actively traded, valuable personal property, and other assets where the value takes judgment.
This split is deliberate. There’s no reason to pay a referee to confirm that a $10,000 bank balance is worth $10,000 — but a house, a business, or a collection genuinely needs an independent appraisal, and that’s where the referee adds value and protection.
How the Referee Is Paid
The referee’s compensation is set by statute, not negotiated. It’s:
- One-tenth of one percent (0.1%) of the total value of the property the referee appraises,
- Subject to a minimum of $75 and a maximum of $10,000 (the court can allow more in unusual cases), plus
- The referee’s actual and necessary expenses.
Because the fee is a percentage of the appraised assets (not the cash the representative values), the math is straightforward. On a $1,000,000 estate, the referee’s fee is roughly $1,000 — and because cash and accounts are excluded from the referee’s base, it’s often a bit less. The fee is paid by the estate as a cost of administration.
Wondering how the referee’s appraisal will affect your estate’s costs? The appraisal sets the fee base for the whole probate, so it’s worth understanding. Bay Legal can walk you through it. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.
How a Referee Gets Appointed
Probate referees are appointed from a panel maintained for each county. In most estates, one is assigned to the case after the representative is appointed, and the representative works with them to get the non-cash assets appraised so the inventory and appraisal can be filed within its deadline.
In limited circumstances, parties can ask to waive the referee or use a different appraiser — for example, where a specialized asset needs an industry expert. But for the typical estate, the assigned referee handles the valuation, and that’s the simplest path.
Why the Appraisal Matters Beyond the Fee
The referee’s valuation does more than justify a fee. It:
- Sets the gross value on which the statutory attorney and representative fees are calculated — so the appraisal directly affects the cost of probate.
- Establishes date-of-death values that matter for tax purposes, including the stepped-up basis beneficiaries may rely on later (a tax question for a CPA).
- Creates a baseline for the representative’s final accounting and for any sale of estate assets, which generally must meet a minimum percentage of the appraised value.
Because so much rides on it, the appraisal is worth getting right — and worth understanding if you’re a beneficiary trying to make sense of the numbers in the estate.
Have an unusual or hard-to-value asset in the estate? The right valuation approach protects everyone involved. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.
How This Fits With the Rest of Probate
The probate referee’s appraisal is the engine behind the inventory and appraisal, which in turn sets the cost of probate and feeds the final accounting. It also matters when the estate has real estate to sell, since the sale price is measured against the appraised value. For the full picture, see our complete guide to California probate.
Frequently Asked Questions
What does a probate referee do in California?
A probate referee is a neutral, court-appointed appraiser who values an estate’s non-cash assets — real estate, business interests, securities, and personal property — as of the date of death.
How much does a probate referee cost in California?
The fee is set by statute at one-tenth of one percent (0.1%) of the value the referee appraises, with a $75 minimum and $10,000 maximum, plus expenses. On a $1,000,000 estate it’s roughly $1,000.
What does the probate referee not appraise?
Cash-type assets — bank accounts, money, and similar items — which the personal representative values directly. The referee handles everything whose value takes judgment.
Can you avoid using a probate referee?
In most estates the referee is assigned and used. In limited circumstances the parties can seek a waiver or a different appraiser, such as for a specialized asset needing an industry expert.
Who pays the probate referee?
The estate pays, as a cost of administration. The fee is part of the overall cost of probate, separate from the attorney and representative fees.
