Trusts: Not Just for the Rich and Famous (Anymore)
So, you've got a bit of dough and you're thinking, "Maybe I should put it in a trust." Good for you! You're officially one step closer to joining the ranks of the ultra-wealthy. Or maybe not. Let’s break down the myth that trusts are only for those who can afford a golden toilet.
How Much Does This Trust Thing Actually Cost?
Let's get down to brass tacks. How much does it really cost to set up a trust in the concrete jungle that is NYC? Well, buckle up, because it's about as straightforward as herding cats.
The short answer? It depends.
DIY or Lawyer Love? You can go the DIY route and use online templates. Think of it as building a house with an IKEA instruction manual. Sure, it might save you some cash, but if you screw it up, you could end up with a trust that's about as sturdy as a Jenga tower. On the other hand, hiring a lawyer is like hiring a professional builder. It'll cost more, but you'll have a trust that's built to last.
Simple or Complex? Are you just trying to protect your kids' inheritance from their spendthrift habits, or are you planning a tax-avoidance scheme that would make Bernie Madoff blush? The more complicated your trust, the more it's going to cost.
Ongoing Fees: Setting up a trust is just the beginning. There are ongoing costs like administrative fees and trustee compensation. These can vary widely depending on the size of the trust and its complexity.
To give you a ballpark figure, you can expect to pay anywhere from a few hundred dollars for a simple DIY trust to thousands of dollars for a complex trust set up by an attorney. And remember, that's just the beginning.
Trust Issues?
Before you dive headfirst into the world of trusts, it's important to consider if you actually need one. Trusts can be a great way to protect your assets, but they're not right for everyone.
So, do you really need a trust? Ask yourself these questions:
- Do you have minor children?
- Are you concerned about someone contesting your will?
- Do you want to avoid probate?
- Do you have a large estate?
If you answered "yes" to any of these questions, you might want to talk to an estate planning attorney.
How To... Trust Basics
- How to choose a trustee: Pick someone trustworthy and responsible.
- How to fund a trust: Transfer assets like property, stocks, or cash into the trust.
- How to avoid trust pitfalls: Consult with an attorney to create a solid trust agreement.
- How to keep a trust healthy: Review and update the trust as needed.
- How to find a good trust attorney: Look for someone with experience in estate planning.
Remember, setting up a trust is a big decision. Do your research, and don't be afraid to seek professional advice.
Disclaimer: This post is for informational purposes only and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.