Common Answers about Trusts and Wills
Thursday, July 2nd, 2009 at 2:49 am
There are no additional filings or fees in setting up a trust. However, it’s likely more complicated and more expensive compared to drawing up a will. The costs vary widely - it would depend on the complexity and size of the estate - attorneys could charge several thousands of dollars on these documents. But for most basic estates, wills could cost about $500 each, according to Steve Akers, a managing director of a New York wealth-management firm named Bessemer Trust Co.
Anybody having possession of your will (usually your attorney) is obligated to file it in the courts upon your death. Therefore, Akers stressed that you should leave copies of your trusts with your designated trustees or attorneys.
A common reason for choosing to set up a trust instead of a will is to avoid the court proceedings. These wills need to be filed in probate court in order to be executed, which means that they become public documents. Costs could be between 1-3% and administrative court fees would come out of the estate. Use of wills are more common in states that have simpler court procedures and hearings are quick (sometimes even for 15 minutes). While with trust, your assets will be simply transferred to designated trustees (or trustee) upon your death.
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