Last week, we discussed some of the reasoning behind setting up a living trust and the basics of a living trust. While it is beneficial to have a living trust to avoid probate, it is also worth discussing that a living trust does come with its set of small inconveniences.
Since you are not going through the courts, there are no court costs associated with a living trust, although you may have to pay a filing fee. Costs vary per state, and may even vary depending upon the size of the state. This is true here in California. The trustee is also entitled to compensation for administration of the trust, which would be deducted from the fund, though these costs can be waived at the trustee's discretion.
Although the beneficiaries will save time from having to go to probate, it is also worth noting that a living trust can lead to a substantial amount of paperwork. In addition to creating a Declaration of Trust, a new deed must be created each time the trustor wants to add assets to the trust. Although all this can be done by yourself without the help of a lawyer, failing to properly administer and write the living trust could lead to costly problems down the road.
With that in mind, if you want satisfaction in knowing that your estate planning is done properly and within the guidelines of the law, you may still want to reach out to a local firm for help. The money you spend today could save you substantial money in fees and time down the road if they were not done properly the first time.
Source: findlaw.com, "Living Trust Information," Accessed June 26, 2017