WESTON Living trusts aren’t for everyone

$5,900 for this job. My friend is single, never married, no children, does not own property or a business. She has no complex financial situations. She does have a financial planner, who she works with on her investments and retirement funds. I am also thinking of doing a living trust with an attorney, and my situation is similar to my friend’s — very simple. However, I can’t afford $6,000 to do a trust or will. Is this a reasonable cost for a simple estate? It seems high to me; should it be more in the range of $2,500?

Answer: Your friend’s experience is why many people put off estate planning or opt for do-it-yourself solutions when they would really benefit from an experienced attorney’s advice.

Let’s start with this: Not everyone needs a living trust. Living trusts are designed to avoid probate, the court process used to settle estates. But probate isn’t a huge hassle in many states. Even in states where probate is notoriously slow and expensive, such as California, there are simplified processes for smaller estates. Plus, there are a number of ways other than a living trust to avoid probate, including pay-on-death designations for financial accounts and, in many states, transfer-on-death options for vehicles and real estate.

Living trusts have other advantages: They’re typically private, whereas wills must be made public after death. And living trusts usually include a relatively easy way to have someone else make decisions for you if you’re incapacitated. But you can set up something similar by creating powers of attorney for health care and finances. Those documents, plus a will, typically cost less than $1,000.

There are self-help legal options online that allow you to create estate plans yourself, and some give you access to attorneys for help. Ideally, though, you would find a lawyer who would charge a reasonable fee to review your situation, offer you personalized advice and draft the necessary documents for you. If you’re having trouble finding someone, ask a tax pro or financial planner for recommendations. If finances are a consideration, avoid law firms with big fancy offices in expensive urban centers and look for those with more modest overhead in outlying areas.

All that said, the amount your friend was quoted could make sense if she has a lot of money. Even without real estate investments, substantial wealth will require substantial estate planning, and that comes with a substantial price tag.

Weston is a certified financial planner. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com. Distributed by No More Red Inc.