What Is a Living Trust and What Does It Cost?
A living trust (also called a revocable living trust) is a legal document that places your assets into a trust during your lifetime, managed by you as trustee, and transferred to your beneficiaries after your death without going through probate court. Unlike a will, a living trust is private, avoids the time and expense of probate, and can be changed or revoked at any time during your life.
The cost to create a living trust varies widely depending on three major factors: who creates it, how complex your estate is, and where you live. Costs generally fall into two phases — creation costs and ongoing maintenance costs.
Creation costs range from under \$200 for a DIY approach using software or legal forms, to \$300–\$1,500 for online legal services, to \$1,000–\$4,000 or more for a full estate planning attorney. Joint trusts for married couples typically cost 20–40% more than individual trusts due to the additional complexity.
Ongoing maintenance costs include updating the trust when major life events occur (marriage, divorce, new children, home purchase), attorney review fees, and potential trustee fees if you name a professional co-trustee. Most people pay \$0 per year if their estate is stable, but should budget \$500–\$2,000 for periodic updates every few years.
DIY vs. Online Service vs. Attorney
**DIY (Do It Yourself)** Using software like Quicken WillMaker or free legal form websites, you can create a basic living trust for \$50–\$200. This is the lowest cost option but carries the highest risk. DIY trusts are appropriate only for very simple estates with straightforward assets and no blended family situations. Mistakes in DIY trusts — like failing to fund the trust (transfer assets into it) — can render the entire document ineffective. If your trust isn't properly funded, your estate still goes through probate.
**Online Legal Services** Platforms like LegalZoom, Trust & Will, and Fabric offer living trust packages ranging from \$300 to \$1,500. These services provide attorney-reviewed templates, step-by-step guidance, and often include support for funding your trust. They represent a middle ground between DIY and full attorney representation. They work well for moderate estates but may not handle complex situations like multiple real estate properties, business ownership, or blended family dynamics.
**Estate Planning Attorney** Hiring a licensed estate planning attorney typically costs \$1,000–\$4,000 for an individual trust and \$1,500–\$5,000+ for a joint trust. Attorneys in high cost-of-living states like California, New York, and Massachusetts charge premium rates. In return, you receive personalized legal advice, a properly customized document, and guidance on funding your trust correctly. For complex estates, this is usually the most cost-effective long-term option because errors are far less likely.
Individual vs. Joint Living Trusts
An individual living trust is created by one person and covers only their assets. A joint living trust is created by a married couple and covers both spouses' assets in a single document.
Joint trusts are generally more cost-effective than creating two separate individual trusts, but they are more complex to draft. They're most common for married couples who own property together and want a unified estate plan. Joint trusts work well for couples with similar estate planning goals and long-term marriages. They may be less ideal for couples with significant separate property, children from prior relationships, or complex financial situations where each spouse's assets need independent management.
The cost difference between individual and joint trusts is typically 20–40% more for joint trusts when working with an attorney, since the document requires additional provisions for both spouses' assets, successor trustees, and distributions.
Ongoing Maintenance and Trust Funding
Creating the trust document is only half the work. A trust must be "funded" — meaning you need to transfer ownership of your assets into the trust — for it to be effective. This involves:
- Retitling real estate by recording a new deed (filing fees vary by county, typically \$25–\$150 per property) - Changing beneficiary designations on financial accounts, retirement accounts, and life insurance policies - Updating bank and investment account titles - Transferring business interests into the trust
Ongoing costs depend on your life circumstances. Most trusts require no annual fees if you handle updates yourself. However, major life events — buying property, divorce, having children, or moving to a new state — may require professional updates at \$200–\$800 per update from an attorney.
Some people hire a professional trustee or co-trustee for ongoing management, which adds annual fees of 0.5–2% of the trust's assets. This is typically only necessary for very large estates or if you want professional oversight.
Living Trust vs. Will-Only Estate Plan
A will-only estate plan is significantly cheaper to create upfront — typically \$300–\$1,500 with an attorney — but triggers probate when you die. Probate is the court-supervised process of validating your will and distributing your assets. It is public, time-consuming (6 months to 2+ years), and expensive. Probate fees vary by state but commonly run 3–7% of your gross estate value.
For a \$500,000 estate, probate could cost \$15,000–\$35,000 in fees and delays. A living trust eliminates probate entirely for assets held in the trust, allowing your beneficiaries to receive their inheritance quickly and privately.
The break-even point — where the higher upfront cost of a trust is offset by probate savings — typically ranges from 1–5 years depending on state probate laws and estate size. States with expensive or slow probate processes (California, Florida) make living trusts especially valuable. States with simplified small-estate probate procedures may make the break-even calculation less favorable for small estates.
How to use
1. Select your trust type: Individual (for a single person) or Joint (for a married couple). 2. Choose your estate complexity: Simple (basic home, savings, standard assets) or Complex (multiple properties, business interests, blended family). 3. Pick your creation method: DIY (forms/software), Online Service (LegalZoom-style), or Attorney (estate planning lawyer). 4. Select your state — costs vary significantly by location due to attorney rates and state-specific legal requirements. 5. Click "Get Cost Estimate" to receive AI-powered current pricing for your specific situation. 6. Review the estimated creation cost range, ongoing annual costs, and how it compares to a will-only approach.
FAQs
**Q: How much does a living trust cost on average?** A: The average cost ranges from \$100–\$200 for DIY, \$300–\$1,500 for online legal services, and \$1,000–\$4,000 for a full estate planning attorney. Joint trusts for married couples typically cost 20–40% more than individual trusts.
**Q: Is a living trust better than a will?** A: A living trust avoids probate, is private, and can be faster and less expensive for your heirs in the long run. A will is cheaper to create upfront but goes through probate court when you die. For estates with significant assets or real estate in multiple states, a living trust is usually the better choice.
**Q: Can I create a living trust without an attorney?** A: Yes, but with significant risk. DIY trusts using software like Quicken WillMaker are legally valid if completed correctly, but errors — especially failing to properly fund the trust — can make it ineffective. For simple estates with limited assets, DIY may be sufficient. For anything more complex, professional guidance is strongly recommended.
**Q: What happens if I don't fund my living trust?** A: An unfunded trust is essentially useless. Your assets won't be covered by the trust and will still go through probate. Funding means transferring legal ownership of your assets — home, bank accounts, investments — into the trust. This is a critical step that many people overlook, especially with DIY trusts.
**Q: Do living trust costs vary by state?** A: Yes, significantly. Attorney rates in high cost-of-living states like California, New York, and Massachusetts can be 2–3 times higher than in lower cost states. Some states also have specific legal requirements that add to the complexity and cost. Additionally, states with expensive or slow probate (like California) make living trusts more valuable relative to wills.
**Q: How often does a living trust need to be updated?** A: Review your trust every 3–5 years or after major life events: marriage, divorce, birth of children or grandchildren, significant changes in assets, moving to a new state, or death of a named trustee or beneficiary. Updates typically cost \$200–\$800 with an attorney.
**Q: Are living trust costs tax deductible?** A: Generally no — estate planning attorney fees are considered personal legal expenses and are not deductible for most people. However, if your trust includes a business component, some fees may be deductible. Consult a tax professional for your specific situation.
**Q: What is a successor trustee and do I need one?** A: A successor trustee manages your trust if you become incapacitated or after you die. Most people name a trusted family member or friend at no cost. Professional trustees (banks or trust companies) charge annual fees of 0.5–2% of trust assets and are typically only necessary for very large estates or situations requiring impartial management.
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