Estate planning costs vary based on your location, estate complexity, and specific needs. Learn more about what to expect for various estate plans.
Find out more about estate planning
Excellent
by Carolyn Albee
Carolyn has been a freelance writer for 15 years, covering a variety of legal topics, from personal injury to crimina...
Updated on: November 13, 2024 · 8 min read
You may know how difficult it can be when a loved one dies—especially if their financial affairs aren’t in order. You don’t want to add to your family’s stress, but you might be wondering, “How much does estate planning cost? And can I afford it?” The good news is that it doesn’t have to be a financial burden. Learn more about estate planning costs so you can find the right solution for your budget.
The cost of estate planning depends on what you need and where you live. A standard last will and testament may cost $300 to $1,000. A more comprehensive plan (such as setting up a trust) can range from $2,000 to $5,000 or more for complex estates.
The cost also depends on whether you work with an estate planning lawyer, and if you do, their fee structure: Some lawyers offer package deals, while others charge hourly rates. To get a better idea of the cost, you can also break it down by different estate planning documents.
A standard last will and testament takes effect upon your death and outlines how your assets should be distributed. Creating a will can cost anywhere from $500 to $1,500 if you have a lot of assets. However, some online services for a basic estate plan are more affordable.
A living will is also called an advance healthcare directive and outlines your wishes for medical treatment and end-of-life care. They can range from $300 to $1,000 depending on complexity. Like a standard will, you can also create a living will online for a more affordable price.
Financial and medical powers of attorney are legal documents that designate someone to make decisions for you when you’re unable. This is a relatively simple form that typically has a lower financial commitment of $100 to $400.
Trusts are a way to provide financial security for your loved ones while avoiding estate taxes and the probate process. The most common is a revocable living trust, which becomes permanent upon your death. The cost of a trust is typically about $2,000 but can be much higher if your estate is complex.
One of the most important things to think about as you research estate planning services is the fee arrangement. Estate planning lawyers typically charge a flat fee, hourly fee, or more rarely, a contingency fee.
A flat fee is a fixed charge for a service, regardless of the time required to complete it. Law firms often use this fee structure for a basic estate plan or single documents like wills. Flat fees can also cover bundled packages—for example, a plan that includes a will, power of attorney, and healthcare directives. Clients with uncomplicated estate planning goals often prefer flat fees.
An hourly rate means the attorney tracks their time and charges you for each hour they spend on your estate plan. Most estate planning attorneys will charge an hourly rate for complex estates involving diverse assets, business ownership, blended families, or other special needs.
With this fee structure, the attorney receives a percentage of the estate only if they successfully resolve disputes or claims. Contingency legal fees are rare in estate planning but may apply if you hire a lawyer to handle the probate process.
Estate planning fees aren’t the only thing that affects your overall costs. You’ll want to understand how individual circumstances, legal complexities, and specific needs might affect your estate plan cost.
Whether you’re single or married affects how many estate planning documents you need. Plus, a single person typically has simpler needs, such as a standard will and healthcare directives. Married couples often require detailed planning for children or stepchildren, including joint trusts and coordinated asset distribution.
The complexity of the estate greatly influences planning costs. Estates with a lot of assets, such as multiple properties, business interests, significant investments, international assets, charitable trusts, or special needs dependents are more complex and will have higher planning costs.
State laws and regulations specify things like allowable provisions in wills and trusts, tax implications, and the rights of beneficiaries. These laws can affect property distribution, healthcare directives, and power of attorney designations. To avoid missteps, look for an experienced estate planning attorney that practices in your state.
This one is straightforward: Experienced attorneys with specialized expertise typically charge higher rates. While higher hourly rates will apply for complex cases, it’s usually worth it. For example, an attorney specializing in high-net-worth estates will likely charge more but will create an estate plan that actually saves you money through tax planning.
It’s tempting to save on estate planning costs by taking a do-it-yourself (DIY) approach. While this may work if you have strong tax law knowledge, an estate planning attorney is your best bet for peace of mind. If you’re confident or interested in learning, you could always consider working with an attorney on more complicated items and approaching others on your own.
Working with an estate planning attorney is the best option for those with complex estates, large assets, special needs, or business interests. The advantages of hiring an attorney include the following:
Here are some cons to consider:
DIY estate planning may be an option for simple estates with straightforward distributions and minimal assets. Advantages of going it alone include the following:
The DIY approach is not ideal for estates with complex needs, large assets, or specific legal concerns—and may not give the peace of mind that you want from an estate plan. The downsides of DIY planning include the following:
You want to minimize your estate planning costs, but you don’t want to skimp on creating a solid estate plan that will protect your assets. Here are a few best practices when considering how to approach your estate plan:
For most people, the best approach to estate planning is a combination of DIY and attorney assistance. That’s why LegalZoom offers a variety of estate planning services, from standard wills to revocable living trusts, all at a convenient flat fee. Check out our options for estate planning services to see which one is right for you.
Here are some of our readers’ most frequently asked questions:
A living trust can cost about $2,000 if you use an estate planning lawyer. Prices can increase if your estate requires additional legal services or complex trust structures. Online services like LegalZoom often offer lower flat rates for creating a revocable living trust.
Yes, you can plan your estate on your own using online resources and templates. However, complex estates benefit from professional legal advice to ensure compliance and completeness.
You can find estate planning lawyers by searching online directories, seeking recommendations from friends or family, or contacting your state bar association. Verify their experience and client reviews before making a decision.
Estate planning in California typically costs between $1,000 to $3,000 for basic services. Complex estates may incur higher fees, ranging from $5,000 to $10,000 or more.
You may also like
4 essential estate planning documents
Estate planning is about more than writing a will
September 17, 2024 · 3min read
10 estate planning must-do's before you travel
No one likes to think of worst case scenarios before a trip, but there are certain estate planning documents you should have in place before you leave.
March 26, 2024 · 4min read
An estate planning guide for women
Here are some basic estate planning considerations for all women, whether you're unmarried, married, have children, or not.
March 26, 2024 · 2min read