Will vs trust cost comparison

Will vs. trust: the long-run cost math

The will-vs-trust decision is usually framed as "which is cheaper." That's the wrong frame. A will is cheaper today but can be dramatically more expensive at death because the estate has to go through probate. A revocable living trust is more expensive up front but avoids probate entirely if properly funded. The question is whether the probate savings outweigh the extra drafting and maintenance cost.

What a will costs

A simple attorney-drafted last will and testament runs $150–$600 for an individual. Couples typically pay $300–$1,000 for mirror wills. Online tools (LegalZoom, Nolo, Trust & Will) produce wills for $50–$250. DIY statutory will forms are free in California, Michigan, Maine, and Wisconsin — you fill in blanks and get a legally valid will, though without an attorney's tax-planning layer.

What a revocable living trust costs

Attorney-drafted revocable living trusts for an individual run $1,500–$4,000; for a couple with some complexity, $2,500–$7,500. Premium firms with tax-planning work go to $10,000+. Online tools now produce trusts for $400–$1,500. The trust costs more because it's a more complex document, and because the attorney typically handles "funding" — retitling your assets (deeds, bank accounts, brokerage) into the trust's name.

What probate costs — the probate variable

Probate cost at death is the big, variable input that decides the comparison. It depends heavily on state:

• California — statutory 4/3/2/1/0.5% fees, double because both the attorney AND the personal representative get the same schedule. A $1M estate pays about $46,000. A $3M estate pays about $80,000.
• Florida, Texas, Georgia — hourly or "reasonable" fees. Ranges 2–6% of estate value typically.
• Most other states — flat fees or percentage caps. 3–5% of estate value is typical.

If your state has expensive statutory probate (California, Alaska, Arkansas, Hawaii, Iowa, Missouri, Montana, Nevada, Oklahoma, Wyoming), a trust pays for itself on even moderate-sized estates. If your state has fast, cheap probate (Wisconsin, Texas independent administration, Florida summary administration for small estates), the math favors will + probate for middle-class estates.

Non-probate transfers — the hidden third option

Before comparing will vs. trust, take inventory of what actually goes through probate. These assets transfer outside of probate regardless of what the will says:

• Retirement accounts with beneficiaries named
• Life insurance policies with beneficiaries named
• Joint tenancy real estate with right of survivorship
• Payable-on-death bank accounts
• Transfer-on-death brokerage accounts and vehicle titles
• Community property with right of survivorship

For many people, these non-probate designations cover 80%+ of the estate, leaving only a house and personal property to handle. In that case, a well-drafted will plus careful beneficiary designations can accomplish most of what a trust would — at a fraction of the cost.

The other reasons to pick a trust

Cost isn't the only variable. Trusts provide:

• Privacy — probate is public; trusts are not.
• Speed — heirs can access trust assets immediately; probate takes 6–18 months.
• Incapacity planning — a successor trustee can step in if you're incapacitated, without court guardianship proceedings.
• Multi-state property — a trust avoids ancillary probate in every state where you own real estate.
• Control over distributions — staggered distributions to younger beneficiaries, or conditions on distributions (education, sobriety, etc.) require a trust structure.

The trust trap: failure to fund

The most common estate-planning failure is paying for a trust and then never retitling assets into it. An unfunded trust is a $3,000 piece of paper that does nothing at death — your assets still go through probate under your pour-over will. If you're going to do a trust, spend the additional hours (or the additional attorney fees) to actually fund it.