Legal fees for estate planning

Question:

How much should it cost to put together a trust from a reputable company? I’m being quoted $4,000 for a trust that would include about $1 million in assets, including a cabin that we hope to pass down to our three daughters. Does this sound fair? Future changes are part of the initial cost.

Response:

That sounds reasonable to me. Fees can very greatly depending on the firm, the legal market in your location, and the work being done. An estate planning package that includes a straightforward revocable trust, will, durable power of attorney and health care directive may cost anywhere from $2,500 to to $6,000 in most markets.

In your case, it sounds like the work will also include the preparation of a deed which can add to the cost. The firm may or may not pass on any recording fee at the registry of deeds.

Another question with revocable trusts has to do with their funding. To avoid probate, your savings and investment accounts must be retitled in the name of the trust. The law firm might assist you with the process or simply give you instructions, relying on you to implement them. What role it takes may also affect what it charges.

Also retirement accounts may not be transferred into trust, but you can name the trust as beneficiary of your IRA or other retirement accounts. There are pros and cons to doing so and the trust should include specific terms if it is going to own a retirement account. If that is your plan, the firm should assist you with preparing the beneficiary designations to make sure they are correct.

Finally, you might want to clarify what’s included in terms of future changes. That is a somewhat unusual offer since it’s difficult to know in advance the extent or frequency of such amendments.

Related Articles

Will Trust Affect Eligibility for Subsidized Housing? How to Create a Trust for your Pet How Can Daughter Protect Her Inheritance Without a Prenuptial Agreement?