How Much Does It Cost To Setup A Living Trust ?
Living trusts have become one of the most common estate planning tools today having gained increasing popularity in the last two decades.
A living trust is one that is set up in the life time of an individual. The individual can consolidate his or her assets under one document. The document will contain names of the beneficiaries of the trust and how the assets that belong to the trust are to be disposed off.
The individual, called the grantor or trustor, is also normally the first trustee so that he or she does not lose control of the assets within their lifetime. The grantor trustee can add or dispose off assets at will. The trust will also have the name of a second nominee who will assume control, should the primary trustee die or become incapacitated.
The document, known as a ‘declaration of trust’, should include the social security numbers of the primary and secondary trustees.
The concept of a living trust dates back to English law of the 16th century and was brought to America by the first settlers. In those days the church was appointed trustee to oversee that the land owned by a landowner was returned back to his heirs on his demise.
A living trust benefits any individual with an estate of $100,000 or above. If the estate was otherwise subjected to probate, court and other legal fees would account for between 2 percent and 4 percent of the estate apart from a protracted period of time. It also minimizes estate taxes.
Most states require that the living trust be drafted by an attorney. The attorney’s services and fees are the only costs involved in drawing up a living trust. The cost will depend on the complexity of the estate. It might range from between $750 to $2,000, or more.
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