When it comes to estate planning, one of the most important decisions you will make is whether to set up a Trust. A Trust can be a great way to protect your assets and ensure that your loved ones are taken care of after you’re gone.
But, what is needed to set up a Trust? In this article, we will explore the cost of setting up a Trust and provide some tips on how to move forward with your checklist for estate planning.
What Exactly is a Trust?
A Trust is an arrangement whereby a trustee holds and manages property or assets on behalf of a beneficiary. Some common terms for Wills and Trusts include the trustee, settlor, and beneficiary. The trustee has a legal obligation to manage the Trust property in accordance with the terms of the Trust agreement and the wishes of the settlor.
The settlor is the person who creates the Trust and transfers property into it. The beneficiaries are the people who benefit from the Trust.
There are many different types of Trusts, but they can generally be divided into two categories: Testamentary Trusts and Living Trusts.
- A Testamentary Trust is created by Will and only comes into existence when you die. The trustees are appointed in your Will and they have a legal duty to administer your estate according to your wishes.
- A Living Trust, also known as an Inter Vivos Trust, is created during your lifetime. You can be the trustee of your own Living Trust and you can change the terms of the Trust or revoke it at any time.
How Much Does It Cost to Set Up a Trust?
The cost of setting up a Trust depends on many factors, including the type of Trust you want to set up, the assets you want to put into the Trust, and whether you use a lawyer or other professional to help you with the process.
If you have a simple estate and you’re comfortable managing the paperwork yourself, it’s possible to set up a basic Living Trust for less than $500.
However, if you have a more complex estate or you want to ensure that everything is done properly, it’s best to hire a lawyer or other professional to help you with the process. The cost of hiring a professional can range from a few hundred dollars to several thousand dollars, depending on the complexity of your estate and the level of service you require.
In general, setting up a Trust is not an expensive process, but it’s important to get professional advice if you have a complex estate or if you’re unsure about any aspect of the process.
Do I Need a Lawyer to Establish a Trust?
You are not required to have a lawyer to establish a Trust, but it’s always a good idea to seek professional advice if you’re unsure about any aspect of the process. For example, if you’re wondering should I put my home in a Trust, then you should probably hire an estate planning attorney.
A lawyer can help you choose the right type of Trust for your needs and ensure that all the necessary paperwork is completed correctly.
If you have a simple estate, you may be able to set up a basic Living Trust without hiring a lawyer. However, if you have a complex estate or you want to make sure that everything is done properly, it’s best to hire a lawyer or other professional to help you with the process.
Do You Want to Learn More About Setting Up a Trust?
To recap, how much does it cost to form a Trust? The answer can depend on if you do the work yourself or hire an attorney. If you need more help establishing a Trust, the experts at LegalShield can help.
Learn more about how we can help you create a Living Trust for your estate.
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