What is a reasonable fee for estate planning?

[SeattleCPA]

Lol I was quoted 20k...ridiculous since I won't be here for the benefits!!

I kinda hesitate to wade into this. But in Washington state, the threshold for filing an estate tax tax return is very low. The trigger is a gross estate of $2,193,000. And that's before deductions for things like a mortgage. And note we're a community property state so that tripwire exists for the couple's gross estate when first spouse passes.

What this means is, firms like ours do a lot of estate tax tax returns. And this is all a long way around to say that the estate stuff gets really messy. It's like doing someone's tax return when they're going through a divorce. Something that should take a couple of hours instead takes ten hours.

Which makes me say this: Anything you can do to not set up your heirs or your spouse for a dumpster fire is worth considering.

P.S. My quote for a Washington state estate tax return is 10-12 hours if your attorney has done her or his work. But if you and the heirs fight or you're discombobulated because you've just lost your spouse or things get messy, it could easily double or triple. (BTW, just for the record, I don't actually do these myself. A CPA and a tax attorney in our firm both of whom specialize in this do them.)

[Hank]

Second marriages and blended families can make things plenty complex. Also special needs trusts and dependents with expected lifelong disabilities.

That said, you want to be careful about getting a great set of paper documents but stumbling on the one yard line and failing to retitle assets and fund trusts. Either make sure you're comfortable finishing all of your assigned tasks or pay (a reasonable fee) to have all assets retitled as necessary to make the plan your trust and estate lawyer drafted effective.

[Gavin West]

Multiple thousands for complex estates. The problem is you don’t know what’s out there that you need to be considering. This is not a cut-and-paste job, although some legal firms treat it that way. You really need to find an experienced firm with a deep tax knowledge and with whom you connect mentally. It’s not too difficult to determine if they are just going through the motions, especially after you meet with a few. While you don’t want to search looking for the most expensive, as with all true professionals, price shopping is not a good way to determine your final choice, Whoever you choose will prob be starting from scratch, no matter what you think. That is what i would expect when choosing a new firm.

Excellent advice for complex estates (and I'm not just referring to high net worth estates). For more than basic planning, each lawyer's methodology in planning and the final product varies greatly, as you would expect. Multiple initial consults will help clients determine who to work with.

[Gavin West]

Lawyers have said that it is faster and cheaper to do new documents than to read and revise those created by someone else.

Apparently, the cost for estate planning depends on the level of expertise you need, the size of the law firm and where it is. A senior partner at a big firm in Manhattan will charge much more than a junior person at a small firm in a lower cost of living locale.

If you ask on bogleheads, some estate planning attorneys may be able to give you an idea of whether you need a complicated and costly plan.

That is good advice from afan for all people needing estate planning, no matter the complexity of the work. Good estate planning is normally $2,000 and up. Some good planners don't charge much for simple plans, while others do, but either way, what's most important is the work is high quality. The best thing you can do is a bit of study at the same time you're getting two or more initial consults. Then you'll get a feel for what you need and what it will cost. Even for estates valued under $1 million, there's no one-size fits all and doing your own work often results in missing something important. The problems I see during estate administrations usually have to do with DIY work or from attorneys who don't regularly practice in this area so pick your attorney carefully and if you want to minimize costs, be proactive while working with him or her so the attorney doesn't have to do as much work.

[endomd]

I joined a legal benefit option to subscribe to under current employer ($7/month) and am quoted $30 per document for estate planning. Appears it may not exceed $500 at the end. Will see how much I will be anticipated to pay at the end though.

[Larry Ragman]

Lol I was quoted 20k...ridiculous since I won't be here for the benefits!!

There is some outrageous gouging out there. When we were looking for help on MIL estate they guy who prepared her will and trusts wanted $15k to start. We walked out.

I just did most of the work and hired the guy I mentioned above to make sure we filed correctly. Like $3k as I recall. Great sounding board. I think you really do need a lawyer to deal with the court filings, but the rest of the nitty gritty can be done by anyone with some financial acumen.

[Larry Ragman]

I would have done the plan myself. Bought the software, printed the forms. My wife said no. I infer she would trust me with our money but not to not screw up our kids money. (Mama bear don’t play.) Well, more seriously, she was concerned with nuances in the state law not captured by the software. Our state’s probate is fairly rigorous. Ended up going to a lawyer who had helped us settle MIL’s estate. He was actually great.

I think $2500 all up (wills, medical directives, etc. No trusts.) Was quoted $7500 by another estate and trust attorney in the area, but he was suggesting a trust for the properties. We talked about it and decided it wasn’t necessary, but it was a good conversation.

[snowcanyon]

Lol I was quoted 20k...ridiculous since I won't be here for the benefits!!

[jfoxcpacfp]

Multiple thousands for complex estates. The problem is you don’t know what’s out there that you need to be considering. This is not a cut-and-paste job, although some legal firms treat it that way. You really need to find an experienced firm with a deep tax knowledge and with whom you connect mentally. It’s not too difficult to determine if they are just going through the motions, especially after you meet with a few. While you don’t want to search looking for the most expensive, as with all true professionals, price shopping is not a good way to determine your final choice, Whoever you choose will prob be starting from scratch, no matter what you think. That is what i would expect when choosing a new firm.

[afan]

Lawyers have said that it is faster and cheaper to do new documents than to read and revise those created by someone else.

Apparently, the cost for estate planning depends on the level of expertise you need, the size of the law firm and where it is. A senior partner at a big firm in Manhattan will charge much more than a junior person at a small firm in a lower cost of living locale.

If you ask on bogleheads, some estate planning attorneys may be able to give you an idea of whether you need a complicated and costly plan.

[SeattleCPA]

I have two law firms I regularly refer clients too. The smaller one charges maybe $3K to $5K? The other firm, a very large one, charges a multiple of that. Both price fairly in my opinion for what they deliver.

[CordMcNally]

I'm not sure how the legal system works regarding this but I know in medicine nobody likes to work on someone else's work (patient). It may not be as non-time consuming as you think when it's somebody that didn't come up with the original plan. I'm sure plenty of time should go into review of the previous work.

[PainShrink]

We belong to the MetLife legal plan (formerly Hyatt Legal plan). It was free to set everything up and update regularly with this plan. If you have access to this plan through your employer ( typically offered through University settings and other large corporations), it’s a great plan. Unfortunately one would likely need to wait for open enrollment if not already enrolled for this year.

[invenio]

$60 for Quicken/Nolo Will Maker. But ours is super simple.

[jz-]

$5000 for original in 2015.
$500 for update.