The average cost of estate planning varies widely, and the amount you pay will depend on several factors, such as the complexity of your estate and where you live. But the benefits of having a proper estate plan in place — from peace of mind to knowing your family is financially protected — are often worth the price.
Learn how to determine the average cost for will and estate planning for your specific needs so you can choose the option that’s right for you.
Key Points
• Estate planning costs vary widely, depending on estate complexity, location, and service type.
• Benefits include asset protection, tax minimization, and reduced probate time and costs.
• DIY options are suitable for simple estates; complex ones need an attorney for personalized advice.
• Manage fees by comparing attorney recommendations, cost structures, and getting detailed estimates.
• A well-planned estate ensures financial and legal security, with assets distributed as intended.
Understanding Estate Planning Costs
The cost of estate planning partially depends on location, but also a few other variables.
Key Factors Affecting Cost
How much does estate planning cost? Here’s what you need to take into consideration.
• DIY vs. professional help: It’s possible to handle your estate plan on your own, provided you follow your state laws regarding signatures, notaries, and witnesses. Hiring an attorney may be ideal if you need more than a simple will, but of course the costs will be higher.
• Estate complexity: Owning large investment accounts, businesses, or properties beyond your primary residence could lead to higher costs because you may need additional documentation and accounts to administer your wishes.
• Location: Estate attorneys in lower cost of living areas typically charge less than in those in large cities. You usually need to work with a lawyer licensed to practice your state in order for the will to be compliant with state law.
Average Cost Ranges for Wills and Trusts
While there’s no way to assign an exact price tag to any estate plan, you can get an idea of what you’ll spend based on different scenarios. Here are some average cost ranges for wills vs. trusts.
The cost of a will depends on how you’re creating it. You may be able to find a free template online that you can fill out on your own, then follow your state’s laws on how to finalize it (such as signing in front of witnesses and/or getting the document notarized).
But if you want state-specific documents or more details on things like healthcare directives, you may need to upgrade to a paid version. Online estate planning services offer more specific templates and can cost anywhere from $40 to over $100. If you opt for a lawyer to help you draft a will, you could pay at least $1,000, if not more.
The process can cost even more if you want to open one or more trusts. You can find online options for living trusts, which cost between $500 and $1,500 to get started. The cost jumps to $1,000 to $3,500 for hiring a lawyer to draft your trust. You’ll incur ongoing management fees, which are usually charged as 0.5% to 1% of the trust’s assets each year.
Recommended: What Is Estate Planning?
Finding Affordable Estate Planning Solutions
You can create key estate planning documents without breaking the bank. Keep an eye out for balancing cost and value to make sure you’re spending the right amount on the right services.
Comparing DIY Online Services vs. Hiring an Attorney
As you figure out which estate planning process is best for you, consider the pros and cons of doing it yourself versus hiring an attorney.
| DIY Estate Planning | Hiring an Estate Attorney | |
|---|---|---|
| Pros |
• Affordable • On your own timeline • Customizable |
• State-specific knowledge • Better equipped for complex estates • Discovers areas you may not know you need |
| Cons |
• Lacks complexity • Could make mistakes • Cybersecurity concerns • Won’t receive personalized advice or guidance from a professional |
• More expensive • Could be a slower process |
Understanding Attorney Fee Structures
Not all estate attorneys charge in the same way. You may encounter hourly rates or flat fees, which can impact your final bill. Both rates vary depending on where you live. An attorney could charge several hundred dollars an hour as they work on your estate plan or several thousand dollars for set deliverables.
Hourly billing may seem like the cheaper option, but you’re typically charged for every phone call and email — making that final number add up fast. You may not know what the actual budget will end up being until the estate plan is finalized. So, if something requires more time and attention, you’ll pay for it.
A flat fee may seem costly at first, but the benefit is that there’s no financial sticker shock at the end. Plus, you can reach out to your attorney as needed without worrying about charging up the bill. Just be sure to find that balance between value and budget so you’re not paying the cheapest lawyer for subpar service.
Tips for Managing Professional Fees
How do you find the best estate planning attorney for your needs? Follow these three steps before you sign any contract.
• Schedule introductory meetings with multiple attorneys. These are usually free, and you can compare recommendations as well as cost structures.
• Ask upfront about rates and variables that could impact the cost beyond the initial estimate.
• Sign a contract with all of the details you agreed upon so there’s no question or disagreement later on. If you have questions, ask before signing.
Why Planning Is a Smart Investment
Estate planning is an important process to undertake regardless of your age or net worth. Let’s take a closer look at reasons to consider it.
Protecting Family, Assets, and Your Wishes
Estate planning serves as a financial and legal safety net for your family so that your assets are protected after your death and distributed according to your own wishes. With a solid estate plan in place, you minimize the risk of a lawsuit of someone trying to claim part of your estate for themselves because you have clear intentions in a legal document.
On top of that, you may also wish to move some assets into a trust or LLC. They can protect personal assets from being collected by creditors. Finally, estate planning can help minimize family conflict. Even if someone is upset about the directions in your will, your executor and the court will ensure your wishes are carried out.
Minimizing Future Taxes and Probate Headaches
Having a strategic estate plan in place can help you reduce future taxes. An estate attorney in particular can help you navigate both federal estate taxes and any potential state estate or inheritance taxes. They’ll factor in gifts while you’re alive as well as potential high property values that could impact your estate’s tax exemptions.
While you may not be able to completely avoid your estate going through probate, having the right plan can reduce the time and money spent in court. You can incorporate life insurance policies and account beneficiaries into your estate plan, both of which go directly to the beneficiary rather than waiting for the probate process.
An attorney may also recommend one or more trusts, such as revocable living trust, which also doesn’t go through the probate process.
Recommended: New Parent’s Guide to Setting Up a Will
The Takeaway
There are estate planning options at every price point, from free online will makers to experienced attorneys who can help navigate a complex portfolio of assets. Find the budget that works best for you to make sure you have everything in place for your family or other beneficiaries.
When you want to make things easier on your loved ones in the future, SoFi can help. We partnered with Trust & Will, the leading online estate planning platform, to give our members 20% off their trust, will, or guardianship. The forms are fast, secure, and easy to use.
FAQ
What’s the biggest factor affecting estate planning cost?
The biggest factor affecting estate planning cost is the size and complexity of your assets. If you have a high net worth, businesses, and/or multiple properties, you’re likely to spend more than someone who primarily has savings and retirement accounts to pass on.
Is DIY estate planning safe or reliable?
Yes, DIY estate planning can be safe and reliable. If choosing an online will maker, be sure the service is reputable and takes the highest security measures. Also check your state laws to make sure you take the necessary steps to make your will legally binding.
How do I know if I need a simple will or a more complex trust?
A will is a solid foundation for any estate plan. Adding a trust transfers ownership of the assets to a third party in order to avoid going through probate. Upon your death, the assets will be distributed based on the rules of the trust.
What questions should I ask an estate planning attorney about fees?
Ask the estate planning attorney whether they charge hourly or as a flat fee. If it’s hourly, get an estimate of how many hours they anticipate your estate plan to take. If it’s a flat fee, ask for a clear outline of all the services included and not included.
Can good estate planning actually save money in the long run?
Yes, good estate planning can save you money, particularly if you have a larger estate with more complex assets. You could save your family money on taxes, probate fees, and even potential litigation.
Photo credit: iStock/PIKSEL
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPRO-Q225-058