Estate Plan Cost: Pricing Strategies and What To Expect

An estate plan provides for your wishes after you die and can also address what happens if you become incapacitated. Making an estate plan can take the burden off your family and loved ones while saving them time and money in the long run.

An estate plan should address your individual needs. This article provides information about the costs of an estate plan and your legal estate planning options. For more information about what to expect with an estate plan, talk to a local estate planning attorney. 

Do You Need an Estate Plan?

An estate plan is the only way you can express your wishes for what happens to your property and assets after you pass away. It ensures your wishes are carried out and provides for your loved ones.

Estate plans also take the burden off your family during a difficult time by avoiding the costs and delays of probate. A comprehensive estate plan may include: 

• Last will and testament
• Revocable living trust
• Pour-over will
• Beneficiary designations (life insurance, retirement accounts, etc.)
• Funeral instructions (including burial costs and funeral expenses)

Many people think of an estate plan as only coming into play when you are gone. But an estate plan should also address what happens if you become incapacitated. For example, a sudden accident or medical illness could leave you unable to communicate your healthcare wishes and manage your financial affairs.

Additional estate planning documents can include: 

• Advance health care directive (living will) 
• Durable power of attorney 
• Financial power of attorney
• Health care power of attorney
• HIPAA authorization 

Cost Ranges for an Estate Plan 

Your estate plan costs will depend on your specific needs. A basic online will form may cost only about $20, with no customization or contingencies. A comprehensive estate plan can cost $5,000 or more. For most people, estate planning costs fall somewhere in the middle.

Before you can estimate the cost of your estate plan, determine if you need: 

• A simple estate plan that provides the minimum of coverage
• A personalized will and revocable living trust, along with other estate planning documents
• A comprehensive estate plan that addresses all your needs and wishes

The more complex your estate, the more it may cost. Complex estate planning situations include having multiple properties, business ownership, blended families, special needs dependents, and high-net-worth individuals. Your family dynamics may also complicate estate planning.

Basic Estate Planning Costs

The most basic estate plan uses a last will and testament. This can be a simple document that names the person who will handle your estate (the executor) and the people who will inherit your property (the beneficiaries). The legal costs for a basic will, prepared by an attorney, range from about $200 to $1,000. A power of attorney and an advance healthcare directive will generally have similar costs.

With research, you can draft your own will. But you should then have an attorney review your documents to ensure they meet your needs and qualify as a valid will under state law. Having an estate planning lawyer review your will not only gives you peace of mind but can also avoid future costs of correcting a legally defective will.

Cost of a Comprehensive Estate Plan

A comprehensive estate plan generally requires an attorney and may cost $2,000 to $5,000 or more. Though more expensive upfront, a comprehensive estate plan can save you and your family time and money in the long run.

Going through the probate process can take months or much longer if someone contests the will. The average cost of probate is about 3% to 10% of the estate’s value. A proper estate plan can help you avoid these delays and costs.

In addition to a will and power of attorney, a comprehensive estate plan generally includes a trust. There are different types of trust, including revocable living trusts, irrevocable trusts, and special needs trusts. Talk to an estate planning attorney about the benefits of a trust for your estate plan.

Attorney Fees and Court Costs

Attorneys use different fee structures depending on the type of legal services involved. The most common fee arrangements are flat fees and hourly billing rates.

Attorneys generally use flat fees for standardized document preparation, such as drafting a basic will. Many people appreciate the predictability of a flat-fee service because they know what it will cost upfront. However, additional document preparation or contingency management may incur additional costs. 

Many lawyers charge an hourly rate for comprehensive estate planning since the work will vary. This is because everyone’s needs are unique. You may have specific requests based on the size, complexity, or number of beneficiaries in your estate.

There may also be court costs, including filing fees, for some legal services. In the event your estate goes through litigation because someone contests the will, there will likely be additional litigation expenses. When you first talk to an estate planning attorney, ask about their legal fees so you know what to expect. 

Can You Use DIY Estate Planning Forms and Templates

Many do-it-yourself estate planning templates are available online. Templates are an option for very basic wills and may address common issues for people looking for a low-cost estate plan. However, before you rely on an online form, make sure you understand its limitations. 

A major limitation is that trust and estate laws vary by state. There is no one-size-fits-all estate planning law for all 50 states. You must understand your state’s laws to ensure your template complies. If your will doesn’t comply with the legal requirements, it won’t hold up in court or fulfill your interests.

Templates also don’t provide for individualized estate planning. If you have specific plans for your beneficiaries, the templates may not meet your needs. Templates may also not adequately cover contingencies, such as when your named beneficiaries pass away, or you acquire new property after making your will.

A comprehensive estate plan drafted by an experienced attorney can provide peace of mind and provide for you and your family in times of need. 

Legal Advice From an Estate Planning Attorney

The best way to learn about estate planning pricing strategies and what to expect is to talk to a local estate lawyer. An experienced attorney can explain their estate planning costs, including estimates for executing a will, a trust, or other legal documents.

An attorney can also help you plan for your end-of-life care and ask the questions you have not considered. For legal advice about making your estate plan, talk to a local estate planning lawyer.