Co-Founder, Coastal Financial Partners Group, California
There are different costs associated with a life insurance trust. In the case of an irrevocable life insurance trust, there is a cost for establishing it which varies based on the complexity of the situation, your location and other factors. It is usually bundled in with other estate planning services. Estate planning attorneys in your area will give you a ball park estimate but trusts and related planning often start at about $2,000.
There are also maintenance costs, especially if a professional trustee is involved. These trusts usually go hand in hand with gifts to the trust to pay premiums and servicing related to the gift e.g. Crummy letters.These costs must be factored in when deciding if the trust should be created. If your situation warrants such a trust, it could be money well spent. Consult with an experienced estate planning attorney.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
The cost to create a life insurance trust is based upon the attorney you use to set the trust up. Each attorney will likely charge different fees for the work involved in putting together the trust documents.
Please feel free to contact me for help with putting together the life insurance or if you have any other questions. Thanks very much.
A life insurance trust is not a product per se but a document written by an attorney. Most attorney's fees range from $150 to $300 per hour. Depending on how simple or in depth the trust needs to be can take an hour or two to several hours if the trust is layered with complexities. Most attorneys can tell you over the phone a good estimate based on how you would like to have it set up.
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There are also maintenance costs, especially if a professional trustee is involved. These trusts usually go hand in hand with gifts to the trust to pay premiums and servicing related to the gift e.g. Crummy letters.These costs must be factored in when deciding if the trust should be created. If your situation warrants such a trust, it could be money well spent. Consult with an experienced estate planning attorney.
Please feel free to contact me for help with putting together the life insurance or if you have any other questions. Thanks very much.