Average Attorney Fees for Establishing Trusts
Discover the key factors influencing attorney fees for establishing trusts to make informed estate planning decisions.
Creating a trust is a key part of estate planning. Whether you want to avoid probate, protect your assets, or ensure a smooth transfer of property, a trust can be a powerful tool. But one question often stands out for people starting this process. What are average attorney fees for establishing trusts?
When you hire an attorney to set up a trust, you’re usually paying for their time. That means the drafting of a legal document (or documents) reflecting your goals. The documents may include related estate planning documents like a pour-over will, power of attorney, and healthcare directive.
The cost of attorney fees for establishing trusts varies based on location, the complexity of your estate, and how much customization you need. But here are some rough figures:
National averages show that setting up a basic revocable living trust with an attorney typically costs between $1,200 and $3,000. For a simple trust in a lower-cost region, fees might be as low as $900 to $1,200. For a highly customized trust in a metro area, fees can range from $4,000 to $7,000 or more.
Geography and Complexity Influence Attorney Fees for Establishing Trusts
Geography
Attorney fees for establishing trusts are influenced heavily by location. Attorneys in major urban markets generally charge more than those in smaller cities or rural areas due to higher overhead costs and demand.
Let’s compare two real-world examples:
New York, New York, is one of the most expensive legal markets in the United States. There, an attorney-drafted revocable trust can easily start at $4,500. They can go up to $8,000+ for more complex estates or trusts involving business interests, out-of-state property, or tax strategies.
Boise, Idaho, is a more affordable legal market. Many estate planning attorneys offer comprehensive trust packages for $1,200 to $2,500. This may may include multiple documents and a planning session.
In a nutshell, the same trust structure—say, a revocable living trust for a couple with modest assets—might cost three times more in one market than another.
Complexity
In many cases, a simple trust may no longer suffice, and costs can climb accordingly. Here are just some of the many factors can increase the cost of attorney fees for trusts:
- Blended families: Allocating assets among children from different marriages
- Out-of-state property: May require additional legal work or ancillary documents
- Tax planning: If your estate is large enough to be concerned with estate taxes
- Trust customization: Restrictions on beneficiaries, staged inheritance, or special provisions
Additionally, attorneys charge fees in two main ways. The complexity of the trust can determine whether an attorney charges you a flat rate or by the hour.
Flat fee arrangements:
- Common for standard trusts
- Predictable pricing
- May include related documents
Hourly billing:
- Often used for complex trusts
- Ranges from $200 to $600 per hour
- Total cost depends on time spent
Hourly billing may be necessary if you require:
- Multiple trusts (e.g., one for each child)
- Tax planning features
- Asset protection components
- Business succession planning
Ways to Prepare and Reduce Costs
There are a few ways to get the most value out of your attorney’s time and reduce costs:
- Inventory your assets in advance, including real estate, investments, and sentimental items
- Decide who your trustee and beneficiaries will be ahead of time
- Understand your goals, whether it’s privacy, probate avoidance, or family protections
- Ask for an itemized quote that spells out what’s included and what costs extra
Attorney fees for establishing trusts can vary significantly depending on how much legwork you’ve done ahead of time. Many people save time and money by organizing their estate planning decisions before the first consultation. And, remember, trusts aren’t static and require additional fees over time.