How Much Does Estate Planning Cost? 2024 Guide

You may know how difficult it can be when a loved one passes—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.

How much does estate planning cost?

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.

Cost of a standard will

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.

Cost of a living will

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.

Cost of power of attorney

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.

Cost of trusts

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.

Types of estate planning fee structures

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.

Flat 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.

Hourly rate

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.

Contingency fee

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.

Factors influencing estate planning cost

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.

Number of individuals

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.

Complexity of the estate

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-specific requirements

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.

Attorney’s fees and experience

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.

Hiring an attorney vs. DIY estate 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.

Pros and cons of hiring an attorney

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:

• Expertise. Attorneys have extensive knowledge of the estate planning process and can navigate complex legal requirements, helping you minimize estate taxes.
• Customization. They provide both strategic planning and immediate wealth management, including trust formation and tax planning.
• Peace of mind. Hiring an attorney offers confidence in legal compliance and thoroughness, reducing the risk of errors and future disputes.

Here are some cons to consider:

• Cost. Attorney fees can be expensive. A complex estate plan requires detailed planning and multiple legal documents—which means more time and higher fees. Working with an attorney may give you peace of mind but for estates with few assets and straightforward distributions, an online service may suffice (and cost less).
• Time. The legal process requires multiple consultations and can take longer to complete due to the attorney’s schedule and the level of detail required.

Pros and cons of DIY estate planning

DIY estate planning may be an option for simple estates with straightforward distributions and minimal assets. Advantages of going it alone include the following:

• Cost-effectiveness. DIY is budget-friendly because it avoids legal fees.
• Control. You have full control over the entire process, so you can make decisions and changes at your own pace.
• Convenience. DIY estate planning can be done from the comfort of your own home, providing flexibility.

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:

• Lack of professional guidance. Without legal expertise, there is a potential for mistakes that could lead to legal issues or disputes among beneficiaries. Attorneys understand the ins and outs of estate planning options and may be able to present options you’re not aware of or knowledgeable about.
• Limited customization. DIY methods may not take your entire situation into consideration. While you have control over the whole process, things are more likely to be missed, and you may not be able to achieve the level of detail an attorney can provide.

How to minimize your estate planning costs

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:  

• Ask for an estimate. Use your first consultation to get an estimate of the estate planning cost for your situation and how long it will take to get plans in place.
• Shop around. Compare estimates, fee structures, and qualifications from multiple attorneys to find the best fit and value.
• Be prepared. Bring all necessary documents to your appointments to save time and streamline the estate planning process.
• Find online resources. Learn about estate planning basics to minimize the questions you have for your attorney, which saves time—and time is money.
• Use document preparation services. You can also draft many estate planning documents online, including last wills, powers of attorney, and revocable living trusts.

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.

FAQs

Here are some of our readers’ most frequently asked questions:

How much does a living trust cost?

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.

Can I plan my estate on my own?

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.

How can I find an estate planning lawyer?

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.

How much does estate planning cost in California?

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.