Cost of Estate Planning
One of the primary reasons people put off estate planning is concern over the cost. Creating a will, trust, and other estate planning documents will cost you some money upfront. The exact cost of your estate plan will depend on the complexity of your needs, your geographic location, and your attorney’s experience level. There are ways in which you can reduce the expense of your estate plan. Your estate planning lawyer will discuss the potential costs of an estate plan below. Just realize trying to save money now will cost your loved ones thousands more if your estate is forced into the probate process when you pass away.
Cost of a Basic Estate Plan
Prices for a basic estate plan vary widely depending on your region. Further, you may find that estate planning lawyers within your area have vastly differing prices dependent on their level of experience. It is not uncommon for attorneys to charge anywhere between $800 and $3,000, depending on the complexity of your estate planning needs. Sometimes, your basic estate plan will include a community or separate property agreement.
Planning for the future can be daunting, as it is uncertain what life may bring. One of the most important investments you can make is in estate planning. A basic estate plan will ensure that your assets and property are transferred to the right people at the right time, according to your wishes. The cost of this estate plan depends on several factors, including the complexity of your assets and your individual needs.
A basic estate plan in the US will typically include the following documents for you and your spouse:
- Powers of attorney
- Medical powers of attorney
- Medical directives
A will is a legal document specifying who will receive your property after you die. It also names guardians for any minors and provides instructions for settling debts and taxes. Depending on your state’s laws, the cost of drafting a will can range from several hundred dollars to over a thousand.
Powers of Attorney
Power of attorney is a legal document authorizing another person to act on your behalf. You can either give someone a general power of attorney or limited power of attorney. Costs vary widely depending on the type of power of attorney you need and the attorney’s fee structure. Generally, however, it can be expected to cost anywhere from hundreds to thousands of dollars.
Medical Powers of Attorney
A medical power of attorney (MPA) gives authority to another person to make healthcare decisions on your behalf if you cannot do so. The cost depends on the complexity of the document, but it typically costs around $50-$100.
Medical directives are documents that outline specific instructions for end-of-life treatments. These may include Do Not Resuscitate orders or directives regarding organ donation. As with other estate planning documents, the cost varies by service provider and complexity.
Overall, investing in a basic estate plan is essential to ensure your wishes are fulfilled after you have passed away. Researching attorneys and discussing your needs with them is key to finding a plan that fits your budget and meets your goals. Investing in a basic estate plan now can save you and your loved ones time and money.
Cost of a Trust
A trust is not usually considered a part of your basic estate plan. A revocable living trust may be essential for those with significant assets to reduce their taxable estate and allow their assets to pass directly to your named beneficiaries without probate. Assets must be re-titled to the trust, and any assets within the trust will not be considered a part of the probate estate.
Trusts can cost several thousand dollars, depending on your needs. A basic living trust may cost under $1,500, while a trust with numerous assets or a complex, multigenerational trust may cost far more. Discuss your needs with your estate planning attorney for an accurate price quote.
Remember that your estate plan, while costing you some money upfront, will save your family significant money in the long run. Your comprehensive estate plan will help your assets avoid a costly, lengthy probate process. It will further ensure that your heirs have the power to manage your affairs if you become incapacitated. An estate plan will cost you far less in the long run than dying intestate, so get started with your estate plan today.