How Much Does It Cost to Set Up a Family Trust?

The answer to the question,  “How much does it cost to set up a family trust?” is that it depends on what type of trust you want. A living revocable trust or living irrevocable trust are two types of trusts that are both used for estate planning purposes. With a living revocable trust, assets can be transferred into the future, but they remain under the control of the grantor. This means that the person who sets up this type of trust can take back anything he or she wants at any time before his lifespan expires.

Family Trusts - An Overview (SURESH&CO) - PrimeGlobal

The other type of trust is an irrevocable trust in which assets are transferred without any expectation on behalf of the donor that he will have access to them once they are placed in trust. If you set up a living revocable trust, it will typically cost between $1,500 and $3,000. With an irrevocable trust, the fees are going to be much higher because each of them typically costs about $5,000 to establish.

What does it cost to have a lawyer draft your documents?

When drafting documents for estate planning purposes or when creating a family trust there are usually two components that go into the price: One is the hourly rate charged by your attorney and the other is how many hours they estimate that it will take them to get the job done. For both types of trusts mentioned above, you can expect the total cost to be in this ballpark: A living revocable trust will cost you anywhere between $1,500 and $3,000.

An irrevocable trust will set you back somewhere in the range of $5,000 to get established. You also want to keep in mind that your attorney is an expert whose advice you should heed when it comes to any legal matter that involves people’s lives or their estates.

While establishing a family trust can cost thousands of dollars, there are ways for individuals with little capital available to them to minimize costs significantly. For example, doing some of the legwork yourself before seeking out legal help can save you money because many times attorneys charge by the hour for their services. Researching how trusts operate will not only make you more familiar with what one entails but will also provide you with a better understanding of how they work.

Working with a non-profit probate clinic in your area is another way to reduce the cost of establishing a family trust because these organizations typically charge significantly less than their for-profit counterparts. While you’ll still want to meet with an attorney just to ensure that your documents are drafted properly, this source can save you up to 50% of the total costs associated with establishing a family trust.

The choice of whether or not to establish a revocable living trust comes down to an individual’s unique situation and his specific needs. For instance, if someone who has children from multiple marriages wants each spouse and child included in the document so their assets don’t get divided, this is typically what needs to be done.

Also, whether or not you should establish a family trust and how much it will cost depend on your financial circumstances and your overall goals as they relate to who would inherit your estate after you die. If you have enough money that establishing an irrevocable trust makes sense for you or if for whatever reason setting up a revocable trust no longer works for you, there are other options available.

One thing to keep in mind is that regardless of how much they cost, trusts can offer great benefits when it comes to protecting the inheritance of minors or ensuring that property is passed down with minimum hassle.

  A living revocable Trust costs between $1,500-$3,000 while an irrevocable trust can cost anywhere from $5,000 to upwards of $7,000. However, for those with little capital available to them, some alternatives can reduce the costs including non-profit probate clinics or meeting with an attorney just to have documents drafted who might charge less than their for-profit counterparts. Family trust costs really depend on what type or where you are located at.

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