When considering an estate plan, it’s crucial to weigh the costs and time involved in probate. A will requires probate, a court-supervised process for distributing assets after death. Trusts, on the other hand, generally avoid probate altogether. In this blog, we’ll explore the up-front costs, administration costs, and the potential for disputes, helping you understand the overall costs associated with probate.
Up-Front Costs: Trust vs. Will
The initial expense of setting up a trust is higher than creating a will, but a trust’s benefits may outweigh the costs in the long run.
- Trusts:
- $2,000 – $5,000+: Trusts have higher up-front costs because of the detailed planning and documentation involved. However, trusts bypass probate, saving on future probate-related expenses.
- Wills:
- $1,000 – $2,000: Wills are generally less expensive to create. However, the estate will likely face significant probate costs, which can quickly surpass the savings of a less expensive will.
- $1,000 – $2,000: Wills are generally less expensive to create. However, the estate will likely face significant probate costs, which can quickly surpass the savings of a less expensive will.
| Document | Up-Front Cost | Probate Involvement |
| Will | $1,000 – $2,000 | Requires probate (costs and delays after death) |
| Trust | $2,000 – $5,000+ | Avoids probate, saving time and money |
Court Costs: Probate Fees
Probate can be a time-consuming and expensive process. It typically involves court fees, executor fees, and attorney fees, which can eat into the estate’s overall value.
- Attorney Fees:
- Probate attorneys charge 2% to 5% of the estate’s value, or they may bill hourly at $300 to $500+ per hour.
- This can add up quickly, especially for larger estates, leading to substantial reductions in what beneficiaries ultimately receive.
- Executor Fees:
- Executors, who manage the estate during probate, typically receive 2% to 4% of the estate’s value as compensation.
- Executors often spend more time and incur higher costs than trustees, since they must manage the probate process from start to finish.
- Court Filing Fees:
- While relatively small compared to other costs, court fees can still amount to several hundred dollars. These fees are only a small fraction of the total costs, with attorney and executor fees making up the bulk of probate expenses.
- While relatively small compared to other costs, court fees can still amount to several hundred dollars. These fees are only a small fraction of the total costs, with attorney and executor fees making up the bulk of probate expenses.
| Fee Category | Probate (Will) | Trust |
| Attorney Fees | 2% – 5% of estate value, or $300 – $500/hr | Minimal or no attorney fees (outside of disputes) |
| Executor Fees | 2% – 4% of estate value | Trustee fees often lower, if any |
| Court Filing Fees | Several hundred dollars | Avoided with trusts |
Table of Trust vs. Will, expected probate fees.
Length of Probate: Time and Opportunity for Disputes
Probate can last for months or even years, creating opportunities for creditors, heirs, and other interested parties to contest the estate.
- Time:
- Probate typically takes several months at best, but it can stretch into years, depending on the complexity of the estate and whether any disputes arise. The longer probate lasts, the more the costs add up, especially when it involves attorney fees and court time.
- Disputes:
- Probate also presents opportunities for creditors or disgruntled heirs to file claims against the estate, which can lead to expensive and time-consuming legal battles.
- A trust, on the other hand, avoids probate and significantly limits the opportunities for disputes. Assets are distributed privately, often quicker, and with less involvement from the courts.
| Process | Time to Complete | Opportunity for Disputes |
| Probate (Will) | Months to years | Open to creditor and heir challenges |
| Trust | Often settled quickly | Private distribution, fewer opportunities for disputes |
Table of Trust vs. Will, time-risk opportunity.
Peace of Mind: Trust vs. Will
A trust, while more expensive to establish, offers significant long-term savings, faster administration, and peace of mind for your beneficiaries. By avoiding probate, your loved ones won’t be burdened with court fees, attorney costs, or the lengthy delays that often come with probating a will.
Conclusion: Balancing Costs and Time
Choosing between a trust and a will often comes down to balancing up-front costs with the long-term savings of avoiding probate. While trusts are more expensive to establish, they save beneficiaries the hassle of probate, which can drag on for months or even years, incurring significant costs along the way.
If you’re looking for peace of mind, faster estate administration, and lower overall costs for your beneficiaries, a trust may be the better choice. However, for smaller estates, a will can still be a practical and affordable solution.
Next Steps
Considering a trust or will? Contact Modern Law today at 417-200-2500 for personalized estate planning guidance. We can help you decide which option best suits your financial and family needs.