Trust vs. will cost methodology

Trust setup cost: ACTEC Attorney Fee Survey 2023

Trust setup cost ranges are derived from the American College of Trust and Estate Counsel (ACTEC) Attorney Fee Survey 2023 — the authoritative benchmark survey of attorney fee data across U.S. markets. The survey provides median and range data by estate complexity and geographic market.

Trust setup cost ranges (ACTEC 2023 survey data):

Simple revocable trust (single settlor, clean assets, no complex provisions):
  National median: $1,500–$3,000
  High-cost metro (NYC, SF, Chicago, Boston): $3,000–$5,000+

Simple joint trust (married couple, pour-over wills included):
  National median: $2,500–$4,500
  High-cost metro: $4,500–$7,500+

Moderate complexity (special needs provisions, minor children's trusts):
  National median: $3,500–$7,500
  High-cost metro: $7,000–$12,000+

Complex trust (irrevocable provisions, QTIP, dynasty trust terms):
  National median: $7,500–$15,000+
  High-cost metro: $15,000–$25,000+

Funding cost per additional real property deed:
  Attorney fee + recording: $300–$800 (varies by state/county)

Annual amendment cost (when family circumstances change):
  Typical: $300–$1,000 per amendment

Probate cost — statutory states: California, Florida, Iowa

Three states use statutory percentage schedules that the calculator applies directly:

California Probate Code §10810 — attorney compensation schedule:
4% of first $100,000 of gross estate
3% of next $100,000
2% of next $800,000
1% of next $9,000,000
0.5% of next $15,000,000
Reasonable amount (court-determined) above $25,000,000

Executor compensation (§10801): same schedule as attorney
→ Total statutory fees = 2× the attorney schedule

Example: $800,000 gross probate estate
  Attorney: 4%×$100K + 3%×$100K + 2%×$600K = $4,000+$3,000+$12,000 = $19,000
  Executor: $19,000
  Total statutory: $38,000 (4.75% of estate)

Florida Statute §733.6171 — attorney compensation:
3% on value subject to administration up to $1,000,000
2.5% on value from $1M to $5M
2% on value from $5M to $10M
Reasonable amount above $10M

Personal representative (§733.617): same schedule as attorney
→ Total statutory fees = 2× the attorney schedule

Iowa Code §633A.3108: similar schedule, applied per Iowa statutory rate

Probate cost — hourly states: ACTEC 2023 benchmarks

For states without statutory percentage schedules, the calculator uses ACTEC Attorney Fee Survey 2023 hourly rate data and estimated hours by estate size and complexity. The result is expressed as a range rather than a fixed amount, reflecting the inherent variability of hourly fees.

Hourly-fee state probate cost model (ACTEC 2023 data):

National median attorney hourly rate (trust and estate specialist): $300–$450/hr
High-cost metro: $400–$600/hr

Estimated attorney hours by estate size (simple, no contest):
  $100,000–$300,000 estate: 15–25 hrs → $4,500–$11,250
  $300,001–$600,000 estate: 25–50 hrs → $7,500–$22,500
  $600,001–$1,000,000 estate: 40–80 hrs → $12,000–$36,000
  $1,000,001–$3,000,000 estate: 60–120 hrs → $18,000–$54,000

Executor compensation (non-statutory states, family member):
  Often waived; professional executor: 1–3%/yr of estate value

Court filing fees (varies by state/county):
  Typical range: $200–$800

Publication costs (required creditor notice in most states):
  Typical: $200–$500

Total probate estimate = attorney fees + executor compensation + court fees + publication

UPC states: Uniform Probate Code §3-720

Approximately 18 states have adopted the Uniform Probate Code, which establishes an informal (unsupervised) probate procedure as the default. Under UPC §3-720, personal representative compensation is “reasonable compensation.” The calculator uses ACTEC survey data for UPC states, with a downward adjustment relative to non-UPC hourly states reflecting the reduced court involvement and faster timelines typical in UPC jurisdictions.

Ancillary probate by state

For each non-domicile state where the user indicates real property ownership, the calculator adds an ancillary probate cost estimate using the applicable state's fee model (statutory or ACTEC hourly). Ancillary probate is modeled as a separate cost event in each applicable state, with attorney fees estimated at the lower end of the hourly range (ancillary proceedings are typically simpler than domiciliary probate) plus court and publication fees for that state.

Incapacity planning value

The calculator models the incapacity planning benefit of a trust as a probability-weighted avoided cost:

Incapacity planning value (avoided guardianship/conservatorship):

Guardianship setup cost: $3,000–$8,000 (attorney fees to establish)
Annual reporting cost: $500–$2,000/yr (court-required accountings)
Duration assumption: 2–5 years (median incapacity period before death)

Probability of needing guardianship without a trust:
  Age 65 planning: ~15% lifetime probability of dementia diagnosis
  (Source: Alzheimer's Association 2024 Facts and Figures)

Expected value of avoided guardianship:
  At $5,000 setup + $1,000/yr × 3 years × 15% probability: ~$1,200 expected value
  (Used as conservative lower bound; actual avoidance value may be higher)

Break-even calculation

The calculator computes break-even as the planning horizon at which the NPV of the trust path (setup cost + funding + expected administration, discounted at a user-specified rate) equals the NPV of the will-plus-probate path (will cost + expected probate cost, timing-discounted by probability of death in each future year based on actuarial tables). The break-even is presented as the year in which the trust path's total accumulated cost falls below the will path's total accumulated cost.

Limitations

• Trust setup cost estimates are based on national ACTEC survey medians. Your attorney's actual fee may differ based on their hourly rate and the complexity of your specific situation.
• Probate cost in hourly-fee states is a range. Contested probate, business interests, or multi-state assets can dramatically increase attorney hours beyond the estimates used here.
• The model assumes a straightforward probate proceeding — no creditor claims beyond debts, no will contests, no litigation. Contested probate cost can be 5–10× the uncontested estimate.
• Trust administration cost after the first death for a joint trust (when the trust splits into sub-trusts) is not fully modeled — this typically requires attorney guidance and can cost $2,000–$5,000.

Primary sources

• ACTEC Attorney Fee Survey 2023 — American College of Trust and Estate Counsel benchmark attorney fee data (actec.org)
• California Probate Code §10810 — statutory attorney and executor compensation schedule
• Florida Statute §733.6171 — compensation of attorney for personal representative
• Iowa Code §633A.3108 — probate attorney compensation schedule
• Uniform Probate Code §3-720 — compensation of personal representative in UPC states