Estate planning involves addressing a variety of issues including:

• Arranging your affairs prior to your death to minimize the emotional and financial impacts of your passing on your family
• Making a plan for the distribution of your assets at your death
• Avoiding, delaying or minimizing estate tax liability
• Making a plan for the continued support and care of your family after
your death
• Nominating a guardian for your minor children
• Creating a succession plan for your business
• Designating an agent to manage your financial affairs and make medical decisions for you if you become disabled

WHAT DOES IT COST TO CREATE AND IMPLEMENT AN ESTATE PLAN?

The cost of creating and implementing an estate plan depends upon numerous variables. The amount of attorney time that will be required to actually put the estate plan together and implement it will determine its cost. Some of the variables include:

• How detailed you asset distribution scheme is
• Whether there are prior marriages and/or children from prior and current marriages
• The existence of potential estate or gift tax liability
• Whether business succession planning will be required

Depending on the specifics of a given situation, for a nuclear family with typical assets (e.g., a house, bank or investment accounts, personal property, and so forth) and the desire to leave everything to the surviving spouse, then to the children, the cost range would likely be $1,500 -- $2,800. More complex circumstances or planning issues will necessarily require more attorney time and, therefore, a higher cost.

WHAT SORT OF DOCUMENTS MAKE UP AN ESTATE PLAN?

There are two general classes of estate planning documents: Basic and Advanced. Basic estate planning documents include:

• Revocable (or living) Trusts
• Certificates of Trust
• Pour-over Wills
• Durable Powers of Attorney
• Advance Health Care Directives
• Property Deeds

Advanced estate planning documents include:

• Irrevocable Life Insurance Trusts
• Special Needs Trusts
• Charitable Trusts (Lead or Remainder)
• Entity Selection and Formation Documentation
• Business Succession Plans
• Other specialized trusts or agreements pertaining to particular assets or situations

WHO NEEDS A LIVING TRUST?

Anybody who owns more that $100,000 in gross assets or owns real estate and wants to avoid formal probate with its attendant costs, delays and publicity. The statutory probate fees for a probate estate of $200,000 are $14,000 for the executor and probate attorney. For a $1,000,000 probate estate, the statutory fees are $46,000. Proper estate planning will avoid these statutory probate fees altogether and keep your private affairs private.

ONCE I HAVE MY ESTATE PLAN IN PLACE,
DO I NEED TO DO ANYTHING ELSE?

“In place” means all of the estate plan documents have been signed and the trust has been properly funded. But, an estate plan is like your own body. It needs a regular checkup to stay healthy and current. Laws are constantly changing and personal circumstances often change unexpectedly. Reviewing your estate plan and personal circumstances, either alone or with your attorney, on an annual basis is an acceptable minimum to determine whether amendments or other modifications are necessary. Significant changes in personal circumstances need to be addressed with you attorney as soon as practicable.

Legal Disclaimer
The information provided to you through this website is intended for educational purposes only. Nothing on this website should be considered legal advice or as a substitute for legal advice. The applicable law will vary depending on your state, jurisdiction and the specific facts and circumstances of your case.

Attorney Melvin D. Rich is licensed to practice law only in the State of California and does not seek to practice law in states, territories and foreign countries other than the State of California. Contacting Attorney Melvin D. Rich through this website is not intended to and does not create an attorney-client relationship between you and Attorney Melvin D. Rich.