How much does it cost to create a living trust?

In terms of creation, the cost of making a living trust could vary from as low as a few hundred dollars to lots of thousands of dollars depending on such things as the complexity of the trust, where you live, and whether you do it yourself or hire an attorney. These are the main costs of setting up a living trust:

1. By attorney:

• In-Person Cost Range: $1,000 to $3,000 for a basic revocable living trust.
• Higher Costs: In more complicated situations-large estates, small business ownership, multiple beneficiaries, special needs planning-the cost is likely to be between $3,000 to $5,000 or more.
• What's Included: The average attorney's cost includes consultations, the preparation of the trust document, transferring the property into the trust, preparing a pour-over will (to capture any assets not transferred to the trust), and in some cases other related documents like powers of attorney and advance healthcare directives.

2. Online Services or Software:

• Cost: $100-$500.
• What You Get: Online tools offer templates and instructions to create a living trust. Online providers are the cheapest solution of all but tend to offer no customization to your specific situation. Online services include LegalZoom, Trust & Will as well as dozens of others that provide estate planning software of some flavor.
• Who Should Get This: Singles or Couples with simple estates and definite distribution goals who are comfortable with the rules and demands of legal document preparation.

3. Do-It-Yourself (DIY) Trust Kits:

• Price Range: $50 to $200
• Included: Simple, DIY trust kits usually consist of boilerplate forms and basic drafting directions in order to do your own living trust. This option is the most economical, but it also has a high potential to cause errors and overlooked documents.
• Suitable For: Those who have a very simple estate and have absolute trust that you can handle legal documents on your own. However, a DIY kit has higher risks of legal errors that can result in issues in the future.

4. Other Expenses

• Transfer of assets: It might include filing fees in connection with deeds, which have to be filed at the recording office, title transfer filing fee, or notary filing fees, $20 from and on up to hundreds of dollars, depending on the kind of property and the jurisdiction thereof.
• Deed to be prepared: This cost may be implemented in the case that it is necessary to pay for a fee on deeds' preparation and recording on all real estate; from $100 to $500 for charge of every house.
• Ongoing Maintenance: Although not technically a setup cost, the trust's ongoing maintenance and updating can subject you to further charges if there are major changes or when you rely on legal advice about the same updates.

5. State-Specific Requirements:

Some states will have other requirements or charges for establishing and keeping a living trust. Some will cost more in some states with a higher cost of living, or where state requirements mean additional lawyer work. 

6. Consultation and Review Fees:

Even with an online service or DIY kit, you might still want a lawyer at least to review the documents— to make sure they're legally solid and stand up to  your needs. For that service, you probably will pay $200-$1,000 or more depending on how much the lawyer charges and how complicated your estate is.

Factors that Affect the Cost

• Complexity of the Estate: Estates that are large and more complex with respect to the number of properties, businesses, or even unique family situations tend to require more written documents in the trust.
• Number of Beneficiaries: More of the latter adds to the complexity and costs of making the trust.
• Inclusion of a Given Provision: Amongst the various ranges, those that include the special needs provision, those that are generation-skipping trusts, or those that include minors may be costly in set-up.
• Location of Geographic Areas: Legal fees will vary from place to place so that urban areas and areas of higher cost of living will typically have higher fees.

Conclusion:

• Basic Living Trusts: If you have a fairly simple estate, you may find online services or Do It Yourself  products which range from $100 to $500.
• More Complex Trusts: For larger estates or more complex family situations, it would require the hiring of an attorney, which would add another $1,000 to $5,000 or more in costs for the service, while also providing professional guidance and legal accuracy.

It will depend on your specific needs, how complex your estate is, and how comfortable you feel with legal issues. A consultation with an estate planning attorney can focus you and provide you the assurances you need that all the legal requirements are observed and that your living trust effectively protects your assets. At One Pacific Trust, our vision is to be the leading provider of trust services.