Cost Comparison Probate vs Living Trust
November 27, 2015/
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 |
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