The Cost of Setting Up a Living Revocable Trust
Typically, a standard living revocable trust starts at around $700 – $900. But that price can go up to $3,000+ depending on the complexity of the trust and the property involved. There are ways to minimize the expense. For example, if you just want one piece of property in a simple revocable trust then some estate planning attorneys in Salt Lake City will drop the price below $700.
However, there are more costs than attorney’s fees. Funding a trust can be a very expensive endeavor. There are too many people who have created a revocable trust and failed to fund it. Essentially, this means that the trust is like an empty account payable to your beneficiary. To fund a trust, you need to transfer the property to the name of the living trust.
If it is a simple bank account, funding the trust can be quick and easy. On the other hand, funding a trust with royalty interest and mineral rights in a multi-million dollar property can be very cumbersome.
Another cost you have to consider is the reasonable compensation paid to the trustee. In most cases, the settler (person who created the trust) wants to serve as the revocable trust trustee. Unless you plan on paying yourself, you can avoid some expenses that way. However, upon your death, you may need to pay a new trustee.
Taxes are also a consideration. The IRS ignores the existence of a revocable trust. That means that any money the trust earns during the year will go right onto your own personal income tax return.
Last, consider the expense of a pour-over will. Because a revocable trust is typically used to avoid probate for the larger assets, it does not usually have every single asset of the settlor. A pour-over will helps the executor to administer all of the property not in your revocable trust.
Most estate planning attorneys will work with you on the price. If you want to save money, have an estate planner draw up the documents, and you can do the rest including acting as trustee and funding the trust.
Contact the estate planning lawyers at Carr | Woodall today to schedule a consultation concerning the cost of setting up a living revocable trust.