Proactive vs. Reactive: The True Cost of Estate Planning

Proactive vs. Reactive: The True Cost of Estate Planning

Option 1: Revocable Living Trust (Proactive)

Purpose: Avoid probate, protect privacy, ensure smooth transfer of assets.

·        Item	Typical Cost (California)
·        Legal Document Service Fees	$2,500 – $3,500 (individual); $2,500 – $4,500 (couple)
·        Notary & Recording Fees	$50 – $250
·        Deed Transfer to Trust	$150 – $300 per property
·        Total Estimated Cost	$2,000 – $5,000 one-time

Benefits:

• Avoids costly court-supervised probate• Maintains privacy — no public record• Immediate control by successor trustee if you become incapacitated• Fast distribution to beneficiaries• Can include incapacity planning, minor guardianship, and real estate coordination

Option 2: Probate (Reactive)

Purpose: Court process required when no trust exists.

·        Item	Typical Cost (California)
·        Court Filing Fees	$435 – $650 per petition
·        Publication of Notice	$400 – $1,000
·        Executor Bond	$500 – $1,500+
·        Attorney Fees (statutory)	4% of first $100k; 3% of next $100k; 2% of next $800k; 1% of next $9M
·        Appraisal & Accounting Fees	$1,000 – $3,000
·        Example	$800,000 estate ≈ $38,000 – $45,000 total cost

Drawbacks:

• Takes 12–24 months on average• Public record — anyone can view your estate• Court delays and multiple filings• Funds frozen until court approval• Emotional and financial stress for loved ones

Summary

	Revocable Living Trust	Probate
·        Timing	Immediate control, fast distribution	12–24 months delay
·        Privacy	100% private	Public record
·        Cost	$2,000–$5,000 one-time	$30,000–$50,000+
·        Control	You choose trustee and terms	Court controls process
·        Stress	Minimal	High

A Revocable Living Trust is a proactive, cost-effective way to protect your estate, avoid probate, and make life easier for your family.

“A little planning today prevents a lot of pain tomorrow.”

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