A living trust is a common estate planning vehicle. Its purpose is to protect your assets against probate and taxes after you pass away.
You will find several types of trusts, and with these, you can assign beneficiaries and make changes. The only time this isn’t possible is if you choose an irrevocable trust.
One option is the living trust. Keep reading to learn more about living trusts, what they offer, and how much they cost.
What Are Living Trusts?
Living trusts work to distribute your estate to your heirs after your death or incapacitation. It is referred to as a “living” trust because you create it while you are alive.
The living trust is typically revocable. This means you can change the conditions and terms as long as you remain mentally competent.
If you are ready to have a living trust created, one of the best options is to hire this living trust attorney. Along with using the services of an attorney, you probably want to know how much this will cost you.
Keep reading to find out.
Related Costs for a Living Trust
If you are interested in a living trust, knowing the factors that impact the cost is important.
Trust Funding
You must consider how you will fund the estate. Your estate may be made up of current assets, which means there are no related ongoing costs.
After the paperwork is filed and in place, the trustees will be established. The assets you list don’t have to be added unless you decide to do this in the future.
Hiring a Legal Professional
The cost related to establishing a living revocable trust varies based on your state and the laws. The cost may also be impacted by how large your estate is.
The national average for creating this legal document for a single person is between $1,100 and $1,500. For a married couple, the cost is $1,700 to $2,500.
One reason there is such a large price range is because of the services offered by different estate planning attorneys. Each attorney will provide a different level of protection and unique documentation.
Make sure you consider cost when looking for an attorney, but this should not be the only or most important factor.
Living Trusts and Estate Plans
Hiring an attorney for creating your living trust means they will likely create it as part of a bigger estate plan. To achieve the needed protection, you must have health care directives, powers of attorney, and a will, along with the living trust.
Be sure to find out what is included with the fee charged by the lawyer before you hire them.
Creating a Living Trust
If you are ready to create a living trust, knowing what this will cost you is essential. The information above provides an overview of what you can expect to spend.
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