If you've decided you want a living trust to avoid probate, how should you proceed? Do you need a lawyer, or can you make a living trust yourself? With a little education, most people can draw up a perfectly legal living trust for next to nothing. Read on to learn how living trusts help avoid probate, how to make a living trust, and whether you can make one yourself.
For many Americans, a significant goal of estate planning is to avoid probate. A revocable living trust, unlike a will, offers a fast, private, probate-free way to transfer one's property after death. Although a living trust is not a complete substitute for a will (it doesn't allow you to name a guardian for a child, for example), it is definitely a more efficient way to transfer property at death, especially large-ticket items such as a house.
Assuming you decide you want a revocable living trust, how much should you expect to pay? If you are willing to do it yourself, it will cost you about $30 for a book, or $100-250 for a service such as WillMaker & Trust. If you hire a lawyer to do the job for you, get ready to pay an average of between $1,000 and $2,000.
You may assume that paying thousands of dollars for the assistance of a professional means you'll receive good value. You get what you pay for, right? Maybe not. If you are willing to invest a couple of hours of your time using a top-quality do-it-yourself resource, you may end up with just as good a result.
To understand why most lawyers charge too much for a living trust and why it is safe to do it yourself, it helps to know that a living trust is about as easy to prepare as a will. To draft a standard living trust—which is what most attorneys offer—you start with a lot of legal boilerplate (off-the-shelf legal language) and add the following information:
After the trust is drawn up, you sign it in front of a notary public.
Finally, to make the trust effective, all property to be distributed under its terms must be transferred into the name of the trustee using a deed or other standard transfer document.
If it's this easy, why not do it yourself? Many people do, quite successfully. (See this survey on people's experiences with do-it-yourself estate planning.)
But consider hiring a lawyer if you have questions about your particular situation or a thorny estate planning issue that a basic living trust just doesn't address. For example, you'll want to consult an attorney if:
But even if you do go the lawyer route, it's worth doing a little research on your own; it's a lot more cost-efficient than paying a professional to educate you about the basics.
Look over the state list below to learn more about living trusts in your state.
For help on choosing a good estate planning attorney, read How to Find an Excellent Lawyer. Or you can go to Nolo's Lawyer Directory for a list of estate planning lawyers in your geographical area (click on the lawyer's or law firm's profile to learn about a lawyer's experience and philosophy).
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming