How much does it cost to have a living trust set up?

[Pacun]

Let's say you have .5 million in bank accounts and a house and you want a to set up a living trust, how much does it cost? Will you use a local lawyer or someone on line?

[Medlin Software, Dennis]

For me, just completed.  Local lawyer, established, but younger than me.  Growing firm, not stagnant.  Dollar amounts of estate are immaterial. Selected a firm with a flat rate, although we contracted for an additional amount for a custom and separate item as well.  Some firms have subscription models, a certain amount to setup, then an annual fee for maintenance/review/consultations/etc.

[jklcpa]

4 hours ago, Pacun said:

Let's say you have .5 million in bank accounts and a house and you want a to set up a living trust, how much does it cost? Will you use a local lawyer or someone on line?

Your question is like asking how much we charge for tax returns. There are many factors that go into pricing any personal service that will vary by region, urban v. suburban, the size/reputation/expertise of the firm, and the complexity of the trust.  I would never suggest DIY online documents for a trust. Too many pitfalls.

To answer though, around my area a few years ago for basic planning and setup (suburban of Wilmington DE, and definitely less than Philly or Baltimore) I've seen a range of $1,500-$2,500 and more.

[Lee B]

There is no "one size" fits everyone's situation. Every client has different circumstances, needs and preferences.

There is a wide variation in probate systems from state to state.

I have had several different Attorney's tell me that in my state a well written will is a good choice.

[Max W]

In CA, probate takes about 9 months, or longer.  It is wise to have an inter vivos trust (also known as Revocable Living Trust, or Family Trust) as this will avoid probate.

 

[Yardley CPA]

I recently posted about this very topic and received some excellent feedback.  With that in mind, my wife and I decided to move forward and establish a Grantor Trust.  We are literally in the very midst of completing it and should have it all set by Christmas.  One of my clients is an attorney with a large regional firm and I requested a reference from her for someone within the firm who deals with estate planning.  After a Zoom consultation and a few follow-up meetings, they were able to prepare 2 sets (one for me, one for my wife) which we had to have notarized:

• Living Grantor Trust Documents
• Pass Through Documents
• Personal Property Memorandum
• Living Will
• Will
• Power of Attorney
• Certificate of Trust 

They provide all the completed forms in both an electronic version and a binder of paper copies.  We'll keep the binder in our safety deposit box.  We've sat with our children and explained what we've done and how it will impact them.  God willing, we and they won't have to deal with this for many years. 

One set fee of $3,000.  

 

[Randall]

My experience on the tax side is many have trusts set up but don't understand what they are, how they work or the tax implications.  Grantor, revocable, irrevocable, living?

 

 

[Yardley CPA]

29 minutes ago, Randall said:

My experience on the tax side is many have trusts set up but don't understand what they are, how they work or the tax implications.  Grantor, revocable, irrevocable, living?

 

 

Ours is a Grantor Revocable.  Obviously, you must fund the Trust.  If you don't fund it, it's useless. 

 

[Lee B]

1 hour ago, Randall said:

My experience on the tax side is many have trusts set up but don't understand what they are, how they work or the tax implications.  Grantor, revocable, irrevocable, living?

 

 

Exactly,I have two clients where it's just paperwork to be filed away.

Then I have to try to keep them from screwing up because they don't understand attorneyspeak and won't ask questions.  aarrgh

[Lee B]

Rocket Lawyer has a 50% off deal through the end of the year.

An Estate Plan, a POA and a Living Trust and a online consultation with an Attorney for only $19.99 per month.

[mcbreck]

I wrote our own trust agreement. Found a Stanford Law book online which had sample trust documents and modified it for my own usage. As with all of you I had a bunch of copies of some client's trusts and I compared them, they are all exceptionally similar except for special issues. Some are in easy to understand wording and some use ol English phrases but the crux of it are all the same. If you have a lot of assets, special assets or special situations (disabled child, step children, dependents with special management needs...) you should meet with an attorney.

 

 

[Lee B]

I am certainly capable of doing what you did, however I would never try to do that.

[Medlin Software, Dennis]

I am not setting things up for myself, so I cannot reply on myself to unravel what I setup.  I need to leave my heirs in the hands of an expert, with E&O coverage, training, etc.  When one gets to a point where there is something to manage outside of intestate, one should likely pay an expert.

[Yardley CPA]

1 hour ago, cbslee said:

Rocket Lawyer has a 50% off deal through the end of the year.

An Estate Plan, a POA and a Living Trust and a online consultation with an Attorney for only $19.99 per month.

If you're comfortable using an online firm, it's a good deal.  Personally, I wouldn't be but that's me.  

[Catherine]

On 12/15/2022 at 11:09 AM, Yardley CPA said:

If you don't fund it, it's useless. 

If you don't fund it, you just spent a heck of a lot of money for raw materials for a fleet of paper airplanes.

[mcbreck]

I'd like to be judgemental on people not doing things correctly with funding their trusts but our checking account and savings account are still in our joint names. When Covid hit, it was a pain to get into the bank so we've never made the switch. My wife is off next week, that might be our goal!

[Catherine]

One attorney I know takes a $10 bill from the trust creator and staples it to the attachment page of the trust, showing it has indeed been funded.

[Medlin Software, Dennis]

6 hours ago, mcbreck said:

I'd like to be judgemental on people not doing things correctly with funding their trusts but our checking account and savings account are still in our joint names. When Covid hit, it was a pain to get into the bank so we've never made the switch. My wife is off next week, that might be our goal!

From my perspective, my daily checking and savings do not need to be in the trust, since it is a relatively small amount (not even a month's expenses).  The accounts will automatically transfer to the person who will be managing our estate, enough to keep things going for a couple of weeks in case other access gets held up.  Same for a life policy, it is a small one, and will go directly to two desired people, outside of anything else.  Our main cash holding accounts are in the trust, as is our home.  We monitor to make sure anything not in the trust will be probate proof (small estate exception).

A trust is not an end all/catch all, it is part of an overall plan (to me).