Q: Cost of setting up a trust in California for home and investments

A: It depends on where you are located. I have friends in Orange County who charge $7,500 and up for two people. I’m in Monterey County and we are closer to $5,000 for a married couple or registered domestic partnership. Be sure to ask what you get for that cost. My firm, for example, gives 12-20 documents for our fee, depending on the clients’ situation, but that comes with one grant deed to place a home, building or vacant lot into the trust. The more real estate a person owns usually increases the cost simply because it involves more work.

My firm offers a flat/set fee for new estate plans, so the cost does not change if you ask 5 or 20 questions. However, most estate planning lawyers have moved away from flat fees because sometimes lawyers make money and other times they don’t. (There’s a lot of work that goes into the documents!) Many lawyers now charge by the hour, which means the more time you take, the higher the cost. So be sure to ask if the fee is a flat/set fee or if you are billed hourly, and find out what you’ll get for that price , so you can compare apples to apples. Best wishes!

A: Setting up a trust in California typically costs between $2,000 to $12,000 when working with an estate planning attorney, with the final price depending on the complexity of your assets and specific requirements. Your situation, involving both real estate and investment accounts, along with multiple beneficiaries, would likely fall in the middle to upper range of this spectrum.

The process usually includes several meetings with your attorney to discuss your goals, review assets, and determine the best trust structure for your needs. The attorney will then draft the trust documents, help transfer assets into the trust, and ensure everything is properly executed. Additional costs might include deed preparation and recording fees for transferring your home into the trust, which can range from $50 to $200 depending on your county.

For your specific case, you should budget around $4,000 to $6,000, considering the scope of assets you're planning to include. Remember that while this might seem like a significant investment, having a properly structured trust can save your beneficiaries substantial money in probate fees and estate taxes later on. You might find it helpful to schedule initial consultations with several attorneys, as many offer these first meetings at no cost or for a modest fee, allowing you to compare their approaches and fee structures before making your decision.