How Much Does It Cost to Set Up a Trust?

A living trust can be a powerful tool in estate planning, designed to manage and protect your assets both during your lifetime and after you pass away. By setting up a living trust, you can maintain control over your assets as the trustee and ensure they are distributed to your chosen beneficiaries without the need for probate, which can save time and maintain privacy.

While the costs and considerations of trusts vary, their benefits can include helping your beneficiaries avoid probate and preserve privacy. This can make it a valuable component of a comprehensive estate plan.

Types of Trusts and What to Include

There are several types of trusts, each with their own characteristics:

Living trusts are effective immediately.

Testamentary trusts take effect after death.

Revocable trusts allow you to make changes.

Irrevocable trusts do not permit alterations once established.

You can place a wide variety of assets into a living trust, such as bank accounts, investments, real estate, life insurance policies, and personal property. However, experts often advise against transferring certain retirement accounts and health savings accounts into a trust due to potential tax consequences.

The Cost of Creating a Trust

The cost of establishing a trust varies based on complexity, location, and whether you’re single or married. In general, attorney fees for a trust creation are usually over $1,000, but this can vary higher by practitioner. Additional costs can also arise from transferring assets into the trust, which can add quite a bit to the total price.

For those looking to save on costs, a do-it-yourself approach using online software is an option, though it could potentially be riskier without professional guidance. Alternatively, you can create the trust yourself and then have an attorney review it, offering a balance between cost savings and legal assurance. Looking for guidance on creating a living trust? I’m here to help. Book a session here.