People often wonder: “what does it cost to set up a living trust?” Just like most questions regarding living trusts, an honest answer is: “it depends.”
Whether it is more cost-effective to go through probate with a traditional will or avoid probate with a living trust is a cause of much confusion and debate.
A California living trust is a legal document that places some or all of your assets in the control of a trust during your lifetime. After your death, the living trust California assets are passed to the individuals you have selected as beneficiaries.
Essentially, there are two options for handling your real estate when you pass away.
A will that specifies how belongings should be disbursed later in the original choice. If beneficiaries include slight children, then your will may have a testamentary trust.
A full-time income trust is the other option and can effectively avoid probate for resources located in the trust. Other investments could still have to undergo probate by use of your “pour-over” will.
The trust is more costly initially when compared to a traditional will. The expense of the extra newspaper and printer ink is not the reason why, though. The legal professional fees is going to be higher since it requires more time to create a full time income trust properly.
Your position should be discussed therefore the best arrange for distributing your real estate can be used. The legal professional will look for ways to make fees as minimal as it can be, bypass probate whenever you can, reduce costs to your real estate and any delays in disbursing your possessions. Also, just because a “living” trust can be utilized when you are still living, there exists more to consider than there has been a straightforward will.
Since different attorneys have different fee scales, there will be variance in fees. It will also depend on your particular situation and what assets you have. However, a general ballpark figure would be around $1000 more to set up a living trust with a pour-over will feature as opposed to a traditional will with a testamentary trust.