It’s not uncommon for people to be surprised at the cost of a Living Trust. I get it—it’s a significant investment, and it’s not exactly a fun one. I recently invested money in some home repairs—none of them were fun, but all were necessary. The most expensive repair (and please excuse my lack of handy skills) was preventative. Trusts are like preventative maintenance: they help you avoid Probate when you pass away and Conservatorships when you’re incapacitated. These are things no one wants to think about, and no one wants to pay the price of failing to plan or dealing with plans that fail.
Is it worth it? Probate fees (at death) are set by statute and are a percentage of the estate. If your estate is worth $1 million, the attorney gets $23,000, the executor gets $23,000, and if court costs are only $4,000, that’s still $50,000. Conservatorships involve multiple attorneys—Court Appointed Counsel, Guardian Ad Litem, Petitioning Attorney, Attorney for the Conservator, etc.—all charging hourly. Fees can exceed $200,000. This is why I am on a crusade to keep as many families as possible out of living probate court and Conservatorships.
If you want to avoid the high costs of court, give me a call about setting up a Living Trust. An ounce of prevention is worth a pound of cure.
