What are Estate Planning Costs vs. How Much Does NOT Estate Planning Cost
Here is the truth, estate planning attorney fees will seem high, but you need to compare them to the cost of NOT planning before you make a decision. Below are some representative numbers for this firm.
How Much Does Estate Planning Cost?
How much do I save by making an estate plan?
If you have an estate worth say $300,000, it could cost you up to $18,000 (or more) to have that estate settled with only a will or without a will. This isn’t including money spent by family or people close to you to go to court to get things like a guardianship or permission to make medical decisions for you. This isn’t including estate taxes, paying off creditors, donations, final expense, and so forth.
How much does a lawyer charge for a will?
A basic will is going to start around $600. But a basic will is just that, very basic. First time marriage, few children, easy distribution, no tax worries, etc.
How much does a revocable living trust cost?
Like the will, the trust will start around $600 for a basic trust. Again, first time marriage, few children, easy distributions, no tax worries, etc.
How much does a living will cost?
They are free. Just go to your doctor’s office or hospital and ask for one. Follow the instructions, have the witnesses sign it, and then file it with the hospitals and doctors.
How much does a will and trust cost?
When you get both documents together, the price actually drops some because the information for both documents is the same…
How much does a complete estate plan cost?
A complete estate plan, including medical estate planning and handling Medicaid and elder law worries starts around $1,500. This does not include deeds or moving assets to any trusts created. The pricing for that depends on how much is done. Also, complete nomination of temporary and permanent guardians for your children is extra.
What is the Price of NOT Planning?
Your Estate Plan
If you have not made your own estate plan, the state has written one for you and you might not like the results. Your plan stands in place of the default state plan and you get to make the decisions.
Estate Administration
Estate administration will be done by a court appointed personal representative, not necessarily who you would have picked
Final Arrangements
Your final arrangements will be made by somebody else. They might not be what you wanted. For example, burial vs. cremation, flowers vs. donations, wake vs. viewing, etc.
Estate Settlement and Probate
Your estate will be settled at around 5.5% to 6% of its value at a minimum. Take that $300,000 estate and there is $18,000 gone that won’t go to your children.
Medical Decisions
Final medical decisions will have to be made by a guardian. A guardian is appointed by the court. The court process can cost from $1,500 upwards.
Organ Donation
Unless you have otherwise made your choices known, you won’t be a donor.
Estate Taxes
If you are one of the fortunate few who have more than $5.43 million (in 2015), you need to worry about minimizing estate taxes.
Guardians for Your Children
Finally, do you want to be able to name who you want to raise your children, or do you want people to fight over it and drag your children through a long court struggle.