Law Office of Hoang Huy Tu

A Trust is a way of transferring your property to an artificial legal entity or "person" before your death, while still having the use and/or control of it during your lifetime. As the Trust owns legal title to the

property in it at the time of your death, and the Trust does not die with you, the property does not have to go through "probate". Probate is the legal process which inherited property goes through to transfer the title to the beneficiary. If you have a large estate, or even a small estate with real property (i.e. real estate), it is often advantageous to set up a Trust, as it usually ultimately is far less expensive. An attorney can help you decided whether a Will or a trust is best for you and your estate.

Asking how much a Will or Trust costs is much like asking how much a house costs. There is a wide range between a tiny cabin in rural Montana and the castles of the rich and famous in Beverly Hills or on Park Avenue.

Generally, the cost of a Will or Trust will depend on:

(1) The amount of legal time and skill your circumstances will require. For example, doing a Willl and Trust for a billionaire with numerous categories of property and a complicated family situation, such as children from several marriages, is likely to require far more time and effort and skill than doing a "simple Will" leaving a modest bank account to one's spouse.

(2) How well you have thought out your wishes. When you get to the lawyer's office, you should have a general idea of what it is you would like done. The lawyer thus can help you through any hazy areas, suggest alternatives and point out any problem areas.

(3) The type and nature of your assets. For example, if all that billionaire owns is publicly-traded stock held in one account at one brokerage firm, and she wants to keep on owning it, relatively little time would be needed by the lawyer to plan to deal with the assets. On the other hand, if she or he holds a bunch of real estate located in different states, oil and gas interests, patent rights, non-publicly traded stock, several partnership interests, owns several private businesses, has a 401(k) plan and IRAs, and was the beneficiary of several family trusts, dealing with that variety of property would usually take a lot more professional time.

(4) The total value of your assets. It's usually not that the lawyer figures you can afford more, but because the more assets you have, the more tax planning you'll likely need. Also, the more you have, the greater the potential liability the lawyer assumes if she or he makes a mistake.

(5) How anxious you are to reduce or minimize potential Federal Estate Tax, and depending on where you live and hold property, possible state and local estate and inheritance taxes. For example, you can leave an unlimited amount to your spouse, and also can leave a total of $1,000,000 free of Federal Estate Taxes to others. (That assumes you have not made certain lifetime gifts (starting in 2002) of more than $11,000 per individual per year -- $22,000 if your spouse joined in the gift. The $1,000,00 amount increases slowly to $3.5 million in 2009; in 2010, it is repealed entirely, but the repeal only lasts one year at which time it will be reinstated to the way it was before the law was enacted.)

(6) If you have a large estate, and the type of assets you hold are appropriate, setting up a Family Limited Partnership might significantly reduce estate taxes, but would increase the cost of the project.

(7) Whether you are also looking for protection from possible future claims of creditors--which may involve the use of various US and foreign partnerships and trusts for your assets.

(8) How unusual your bequests are. For example, if you intend to cut out the natural objects of your bounty (your spouse, children, grandchildren and other relatives) and instead leave everything to a caregiver or a cult, it would take a lawyer lots of extra time to make sure you have all your marbles and to plan to make the Will as safe from attack as possible.

(9) How detailed you insist on in terms of the property you would leave behind. For example, if you insist on designating a separate beneficiary for each and every item you own -- the big pot to Bill, the yellow frying pan to Susan, etc. -- that takes lots of extra time and is lots of work.

(10) How much of a hurry you are in. If the lawyer must drop everything else to handle your Will, it may cost a bit more.

(11) Your health -- mental and physical. If it's very bad, that would require some extra effort to minimize the likelihood of any challenge.

(12) Where you are based -- and how good a lawyer you want. It often costs a bit more for a top lawyer in a major city than in a small locale. A highly experienced lawyer often charges more than an inexperienced lawyer. However, in most estate planning matters, the lawyer's fee is almost meaningless compared with the amount your heirs might save in estate taxes and probate costs, not to mention the hassle you can reduce for those who you'd leave behind.

(13) Whether the lawyer expects s/he'll ever get any more work from you, your family, or your estate. If it is a one-shot matter, you'd likely pay more.

Doing a Will or Trust is NOT a "Do It Yourself" project. Consult an experienced lawyer. While you should always ask the fee, it makes little sense to shop for any professional service based solely on price.