If you have any type of assets that you want to be distributed after you become extremely ill or unable to make cognitive decisions on your own, a living trust may be an option that you can choose. This document is similar to a will, but it is used when you haven’t died.
Hiring A Professional
Unfortunately, there is no set figure for a living trust cost. The factors that create the cost will vary and are dependent on financial situations as well as specified requirements. However, you can estimate what a general plan might cost by focusing on the type of living trust that’s prepared.
Typically, a living trust will be placed in the hands of an attorney who specializes in this type of situation. Lawyers who have experience dealing with end-of-life planning are one of the best to use. They understand how to work with finances that are complex.
Living Trust Cost
A specialized attorney who handles living trusts can provide financial advice, legal advice and enter pertinent information into the documents that are required when you set up a living trust. If you have a large number of assets that need to be documented, it will increase the cost.
A simple plan may start around $1000. The cost can rise significantly after that if you have a complex situation. Most attorneys will be able to provide you with an estimate of the cost when you first consult with them.
Doing It Yourself
If you have a simple financial situation, you may want to just do it yourself. You can accomplish this by searching the internet for “estate planning” documents. You can also use a software program that is specifically designed to help create a living trust. These resources can range between $20-$200, depending on how complex and thorough they are.
You must realize that you are creating a legal document when you decide to go this route. If you make a mistake, it may be too late to fix it in the future. However, if you take your time, this may be more beneficial to you and only cost a few dollars.
Another route that you might want to take is to use the services of a paralegal. The cost for this would be somewhere in the middle of doing it yourself or hiring a specialized attorney. While a paralegal does not have the professional status of a lawyer, they are familiar with financial planning and may provide special insights that would be missed if you do it yourself.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!