Cost of Probate vs. Cost of Living Trust
(Based on a typical estate valued at $4 million, including your house)
Think:
Why pay $3500 for a Living Trust when the cost of doing nothing is $0 and the cost of a simple Will is about $400?
Costs |
Doing Nothing |
Will |
Living Trust |
| Preparation |
$0 |
$400 |
$3,500 |
| Administration |
nominal |
nominal |
$20,000 |
| Probate Fees |
$15,000* |
$15,000* |
$7,500 |
| Taxes |
$500,000 |
$500,000 |
$0 |
| |
|
|
|
| Total |
$515,000 |
$515,400 |
$31,500 |
| |
|
|
|
| Savings |
|
|
$483,500 in Savings |
* double this number if you have both an attorney and a personal representative in probate court.
Time Involved for You and Your Heirs |
Doing Nothing |
Will |
Living Trust |
| Your Preparation |
0 |
1 hours (appointment + execution) |
2 hours (appointment + execution) |
| Administration for Heirs |
At least 6 months |
At least 6 months |
Immediate access to the money/assets, paperwork completed in 6-9 months, as soon as tax return approved by IRS |
| Time in Probate Court |
At least 6 months |
At least 6 months |
One week or less |
| Total Time |
180 days minimum |
180 dats minimum |
7 days |
| |
|
|
|
| Time Saved |
|
|
173 days saved |
|
|
|
