Estate planning is one of the best things you can do to protect your and your loved ones’ future. Still, plenty of Americans postpone the process due to misconceptions and worries about cost.
The truth is, while estate planning may seem like an investment, it’s an investment that pays off in the long run, especially since it can help your loved ones avoid costly legal processes when dividing your assets in probate. To prevent this, it’s best to budget for estate planning.
However, the cost of estate planning can vary widely depending on various factors. In this guide, we’ll break down what all goes into estate planning, what factors influence the cost, and the average fees you can expect with each aspect of estate planning. With this knowledge, you can seek an experienced estate planning attorney who will be able to customize the perfect estate plan based on your wishes, needs, and budget.
Why Estate Planning Costs Matter
In essence, estate planning involves drafting and organizing legal documents that state how you would like your personal, financial, and medical affairs handled after you become incapacitated or you pass away. These documents may include wills, trusts, a financial power of attorney (POA), or healthcare directives.
One of the main financial benefits of estate planning is avoiding unnecessary legal fees, taxes, and disputes down the road. A clear, legally binding plan can minimize the chance of probate delays, reduce estate taxes, and ensure that your assets go where you want them to, without costly legal battles or confusion. In other words, the money you invest in planning today could save your loved ones thousands tomorrow.
Many people assume you should only go through the process if you’ve retired or you have enough finances that warrant estate planning. The reality is that anyone can benefit from estate planning. Even younger adults, especially those with children, property, or any significant savings, should have a basic estate plan in place. Unexpected events like accidents or illness can happen at any age. With the proper legal documents, your loved ones won’t have to sort things out alone. Instead, they’ll have written instructions on how to honor your wishes. This kind of assurance can be priceless.
Common Services Included in Estate Planning
To understand how much estate planning costs, you must understand what services most estate planning attorneys offer. From here, you can decide which services you need the most and budget accordingly.
A Will
In short, a will is a legal document that instructs how you would like your assets distributed after your death. It also allows you to name beneficiaries, appoint guardians for minor children, and designate an executor to carry out your wishes.
On average, estate planning attorneys charge $500 for drafting a will. This price can fluctuate depending on:
- Single vs. joint will: A joint will for married couples typically costs more than a single individual’s will due to the added complexity of coordinating both parties’ wishes.
- Notary services: Some states require a notary or a witness to sign the document, which can involve additional fees depending on the official notary service.
At a bare minimum, most estate plans will have a will.
A Revocable or Irrevocable Trust
Another essential tool is a trust, which appoints a trustee to manage assets on behalf of beneficiaries after your death. Two of the most common types are revocable trusts and irrevocable trusts. You can alter or revoke a revocable trust — sometimes called a living trust — at any time during your lifetime. This can be more flexible than an irrevocable trust, which you can’t change after you create it. Still, an irrevocable trust can offer strong protection against taxes, creditors, and legal judgments.
The average cost to set up either type of trust is around $2,000, though this can vary depending on the complexity of the trust, the value and variety of assets involved, and whether you need customized provisions.
Using a trust offers significant benefits in estate planning, such as:
- Greater control: You’ll be able to dictate how and when assets are distributed, especially for minors, beneficiaries with special needs, or individuals who may not be financially responsible.
- Avoid probate: If you create a revocable trust, your loved ones will be more likely to avoid probate.
- Reduces the taxable value of your estate: Irrevocable trusts can help you minimize your beneficiaries’ tax liabilities, as irrevocable trust assets are taxed differently depending on what they are.
- Asset protection: Trusts can help shield your assets from creditors, particularly if you’re using an irrevocable trust.
No matter who you are or what assets you have, trusts can significantly benefit your estate plan.
Power of Attorney
A power of attorney (POA) is another legal document that you can use to grant someone you trust the authority to make decisions on your behalf if you are cognitively impaired, ill, or are otherwise incapable of making decisions. There are two types:
- Medical Power of Attorney: Allows a designated individual, called a healthcare proxy, to make medical decisions for you if you’re incapacitated.
- Financial Power of Attorney: Authorizes someone to manage your financial affairs, such as paying bills, handling investments, or accessing bank accounts.
Most POAs cost $375, but the cost may vary depending on which POA you need. Without a POA, your loved ones may need to go through lengthy court proceedings to gain control over your care or finances, adding stress and delays during an already difficult time.
Other Important Documents
Many people also have additional documents in their estate plans, such as:
- Advance directives: These documents outline your preferences for medical treatment in situations where you may not be able to speak for yourself. This includes life-sustaining treatments such as resuscitation, feeding tubes, and ventilator use.
- HIPAA authorizations: The Health Insurance Portability and Accountability Act (HIPAA) restricts access to your medical information. A HIPAA authorization allows named individuals, such as family members or caregivers, to receive medical updates, communicate with your healthcare team, and make informed decisions in emergencies.
- Digital asset instructions: This document outlines instructions on who can manage your digital assets and how you’d like them handled. Assets can include email accounts, cloud storage, social media profiles, cryptocurrency, and other online accounts.
These documents, among all of the other legal documents included in an estate plan, can help you feel more at peace with your passing, knowing you’ve financially protected your loved ones and there is a legal record of your wishes.
Cost Factors to Consider in Estate Planning
While you can budget for the average cost of an estate plan, know that this cost will vary widely depending on the following factors:
Complexity of Your Estate
The more complicated your estate plan, the more time your attorney will spend drafting. Complexities can include:
- The number of assets: If you have real estate in different states, investment portfolios, retirement accounts, inherited assets, or valuable personal property, your estate plan will require more detailed documentation to ensure everything is appropriately titled, distributed, and protected.
- Number of heirs: More beneficiaries often means more potential for disagreements or confusion, especially if inheritances are unequal or require specific conditions. Your attorney may need to spend additional time drafting clear language to reduce the chance of disputes.
- Blended families: If you have stepchildren, multiple marriages, or differing legal obligations to past and current family members, your attorney should structure your plan in a way to avoid conflict and unintended exclusions. This might involve separate trusts, conditional bequests, or individualized distribution strategies.
- Special business interests: If you own a business, your estate plan should include succession planning, valuation, and the transfer of ownership. These decisions will ensure your business continues to run smoothly, or that the proper parties can sell or dissolve it according to your wishes.
Each of these needs requires different solutions. If you want to address them completely, you’ll need an experienced attorney who has experience solving them.
Type of Legal Professional You Work With
When drafting an estate plan, the first person you should call is a legal professional. However, before you commit to the first attorney you find, know that different attorneys will have different costs for their services based on their pricing structures, their experience level, and their specialization. For example, an attorney who specializes in estate planning may have higher rates in comparison to an attorney who offers generalized services, but they’ll be more equipped to handle complex tax laws, probate process, and trust structures.
Because of these variations, you should shop around and analyze reviews from those with similar estate plans, especially if you have a complex estate plan that requires a specialized attorney.
Pricing Structures: Flat Fee vs. Hourly Rates
When it comes to estate planning, attorneys typically use one of two common pricing structures: flat fees or hourly rates. A flat fee is a set price for a specific service or package of services. For example, an attorney may charge a flat rate to draft a simple will, power of attorney, or living trust. Many attorneys will use this pricing structure for straightforward estate planning tasks.
In contrast, some attorneys bill by the hour, especially for more complex or customized plans. With hourly billing, the total cost depends on the amount of time the attorney spends on your plan, researching, drafting documents, answering questions, or handling updates. This structure is more common when your estate involves unique considerations like multiple properties, business ownership, or complicated family dynamics.
Many estate planning firms offer a mix of both models: flat fees for standard documents and hourly rates for additional consultation or specialized planning. Be sure to ask for a detailed breakdown of what each fee includes, and always clarify whether follow-up services, edits, or future updates are covered or billed separately.
Online Services vs. In-Person Legal Help
Many people turn to online services and templates for estate planning, especially if they’re first planning and are unsure of where to turn first. Many platforms will charge cheaper fees, which may be doable for those with tight budgets and relatively simple planning needs.
However, these services can easily fall short, especially for those who need customized estate plans. These platforms often don’t acknowledge unique family dynamics, blended families, business ownership, state-specific legal requirements, or nuanced tax strategies. As such, they may easily overlook issues that can land your loved ones in costly court proceedings, and even worse, your wishes might not be rightfully honored.
A specialized attorney may be more expensive than these platforms, but they’ll be able to tailor an estate plan based on your needs, provide personalized guidance, and have the foresight to avoid any potential pitfalls.
How To Save Money on Estate Planning
Instead of relying on online platforms to save on costs when estate planning, it’s best to use the following methods:
- Bundled estate planning services: Many attorneys will offer bundled packages that include essential documents like a will, trust, power of attorney, and an advance healthcare directive. This can be especially helpful for individuals with larger or more complex estates, as it reduces the total cost compared to paying for each document individually. In addition, some firms offer joint planning packages for couples, which can cut costs further by addressing both partners’ needs in a single session.
- Opt for flat rates: Rather than paying an hourly rate, look for attorneys who offer flat-fee pricing. Flat fees provide cost transparency and help you avoid unexpected charges for follow-up calls, document edits, or consultations. This approach is beneficial if you’re creating a relatively straightforward estate plan and want to manage expenses without compromising on professional oversight.
- Update an existing estate plan instead of starting over: If you already have an estate plan in place, it may be more cost-effective to update your existing documents rather than creating an entirely new plan from scratch. Most attorneys can review and revise your plan for significantly less than the cost of drafting brand-new materials, saving both time and money.
In addition, don’t be afraid to be upfront with your attorney about your budget! A good attorney will empathize with your cost concerns and offer recommendations for the most financially savvy solution. The important thing is to simply prioritize estate planning in the first place, and then find a qualified attorney who has your back. This way, you’ll be at peace knowing your future is cared for.
At Burris Law, we place our clients first in estate planning — no matter their budget. Our experienced estate planning attorney, Ariana Burris, has years of experience tailoring estate plans to clients’ needs and providing one-of-a-kind legal services. Contact us today to get started!
FAQs About Estate Planning Costs
How Much Does a Basic Estate Plan Cost?
On average, a basic estate plan that includes a last will and testament costs $500 as a flat fee. Other additions, such as powers of attorney, health care directives, and trusts, may add more to the cost of the estate plan.
What Is the Most Expensive Part of Estate Planning?
Creating a trust is often the most expensive part of estate planning. Depending on the type of trust and the complexity of your assets, costs can range from $3,000 to $5,000 or more. Factors like property transfers, tax planning, and multiple beneficiaries can increase both time and cost.
Can I Create My Own Estate Plan to Save Money?
Many people create their own estate plans using online tools. This approach can be cost-effective, with some services charging under $300 for a complete package. However, DIY plans may not cover state-specific legal requirements or complex family situations, which could lead to costly issues later.
Is Estate Planning a One-Time Cost?
Estate planning is not always a one-time expense. You may need to update your documents as your life changes, such as after a marriage, divorce, birth of a child, or a significant financial shift. Some attorneys offer review and update services for a lower fee than the initial plan, while others may charge the full price for significant revisions.
Does Insurance Ever Cover Estate Planning Services?
Some legal insurance plans offered through employers or membership organizations include estate planning benefits. These may cover basic documents like wills and powers of attorney at no additional cost. However, comprehensive planning or trust creation is usually not covered, and you would need to pay out of pocket.
Why Do Estate Planning Costs Vary So Much?
Estate planning costs vary based on the complexity of your estate, the number of documents you need, your location, and the professional you hire. Attorneys in urban areas may charge more due to higher overhead, and more complex plans that include tax strategies, multiple trusts, or business succession planning require more time and expertise, which drives up the cost.
Is It Cheaper To Bundle Estate Planning Services?
Yes, many attorneys and online platforms offer bundled estate planning packages at a discounted rate. Instead of paying individually for a will, power of attorney, and health directive, you can often save money by purchasing a comprehensive package. Bundling can also ensure that all documents work together cohesively under state law.