How Much Does A Living Trust Cost? 4 Things That Affect The Cost Of A Living Trust

How Much Does A Living Trust Cost - Cost Of Living Trust - Living Trust Cost - How Much Is A Living Trust - Cost To Set Up Living Trust

How much does a living trust cost?

In this article, you’ll learn about: 

  • how much does each type of living trust cost
  • what affects the cost of a living trust
  • the average cost of a living trust
  • DIY living trusts vs attorney-created ones

Let’s dig in. 

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How Much Does A Living Trust Cost?

Here is how much a living trust costs based on the complexity of your living trust:

  • DIY Trust: $50 – $350
  • Simple Trust: $1,000 – $3,000
  • Complex Trust: $5,000+

If you opt for a do-it-yourself (DIY) living trust, you might only spend between $50 and $350.

If you decide to hire a lawyer, the cost can range from $1,000 to $3,000 for a single person’s trust. 

This fee typically includes:

  • the initial consultation
  • trust drafting
  • signing process

If your estate is complex, requiring unique provisions or tax planning, costs can go up to $5,000 or more. 

Remember, additional costs might occur, such as funding your trust or amending it in the future. 

Also, the administration of the trust after your death can incur separate expenses.

Read More: Do I Need A Trust To Avoid Probate

What Affects The Cost Of Living Trust?

The cost of a living trust varies based on several factors:

  • The Complexity of the Trust: A simple trust, perhaps for a single individual with uncomplicated assets, will cost less than a complex trust. Complex trusts can involve multiple parties, varied assets, or unique distribution instructions, leading to higher legal fees due to increased time and work.
  • Geographic Location and Local Market Rates: Living in high-cost-of-living areas usually means paying more for legal services. The local market rates for legal services can greatly impact the cost of a living trust.
  • Expertise and Experience of the Attorney: More experienced trust attorneys, or those who specialize in estate planning, often charge more for their services. However, their expertise can be invaluable in complex situations or to avoid future legal issues.
  • Level of Customization Required: A trust using standard, boilerplate language will cost less than a highly customized trust. Customizing a trust to fit unique circumstances requires more attorney time, thus increasing how much a living trust costs.

Read More: The Biggest Mistake Parents Make When Setting Up A Trust Fund

Average Cost Of A Living Trust

The average cost of setting up a living trust varies widely. 

For a simple trust, costs typically range from $1,000 to $1,500. 

This cost includes:

  • the legal consultation 
  • the preparation of the trust document

But more complex trusts:

  • require more legal work 
  • are more expensive 

Complex living trusts cost anywhere from $3,000 to $5,000 or more.

It depends on the:

  • complexity of the assets 
  • specific stipulations of the trust

Keep in mind, these living trust costs are not set in stone. 

Several factors can affect the final cost of a living trust

These factors include:

  • your location
  • the complexity of your assets and estate
  • the rates of the trust lawyers you hire

Moreover, the trust’s ongoing administration may also incur additional costs over time. 

These costs could be related to:

Note that while an attorney-prepared trust may cost more, it can potentially save you money in the long run. 

Properly crafted trusts help:

Read More: What Happens To An Irrevocable Trust When The Grantor Dies?

Trust Attorney Created vs DIY Living Trust Costs

Let’s compare how much a living trust costs between:

  • a DIY living trust
  • an attorney created trust

DIY Living Trust Costs

A DIY living trust is a legal document that you create yourself.

This is done typically using online tools or software, without the assistance of a trust attorney

It’s a way to manage your assets during your lifetime and distribute them after your death.

The cost of a DIY living trust largely depends on the software or online service you choose. 

On average, a DIY living trust cost ranges from $50 to $500. 

This is considerably cheaper than hiring a trust attorney, making it an appealing option for some.

However, creating a DIY trust has potential pitfalls, including:

  • Risk of Errors: Without legal expertise, you might make mistakes. These could include incorrect language, not meeting legal requirements, or not fully understanding the implications of your decisions.
  • Complexity of Trust: More complex estates may not be well-served by a DIY trust. This is because these trusts often require detailed knowledge of tax laws, real estate laws, and other legal regulations.
  • Lack of Legal Advice: A DIY trust does not offer personalized legal advice. This means you might overlook opportunities to protect your assets, minimize estate taxes, or ensure that your wishes are effectively carried out.

While a DIY living trust costs less upfront, it may have limitations and risks. 

It’s crucial to understand these before deciding on a DIY trust.

Read More: Does A Revocable Trust Become Irrevocable Upon Death

Attorney-Created Cost Of A Living Trust

An attorney-created trust is a legal document drafted by a trust lawyer

It sets out the rules you want to be followed for property held in a trust for your beneficiaries.

The cost of a living trust created by an attorney varies based on factors like:

  • trust complexity
  • attorney’s experience
  • geographic location

Generally, you can expect to pay anywhere between $1,000 to $3,000 for a simple to moderately complex trust.

Choosing an attorney-drafted trust has several advantages.

  • Expertise and Experience: With an estate planning lawyer, you get the advantage of their knowledge and skill. They will ensure your trust is structured correctly and complies with legal requirements, minimizing errors or oversights.
  • Customization: Attorneys can tailor your trust to your specific needs and circumstances. This is especially beneficial for complex estates or unique situations, like providing for a special needs beneficiary.
  • Holistic Advice: Lawyers can offer valuable counsel not just on your trust, but on your entire estate plan. They can advise on strategies to reduce estate taxes and ensure a seamless transition of your assets.
  • Dispute Protection: Having your trust drafted by an attorney provides a level of safeguard in case disputes arise after your death. It shows that the trust was created with professional guidance, which can lower the chance of successful legal challenges.

Read More: How To Set Up A Trust Fund For A Child

Get A Quote For A Living Trust

If you want help from a trust law firm, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust fund lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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