Estate planning is a crucial aspect of financial management. In New York, as elsewhere, a well-structured estate plan can provide peace of mind and ensure your wishes are recognized and respected after your demise. However, the process can be complex and often requires professional legal aid.
In this post, we break down the various costs associated with estate planning in New York with the help of an attorney, to help you understand what you might expect to pay for these services. We also provide a comparison if you were to use Snug for your estate planning needs.
1. Initial Consultation
Many attorneys in New York offer a free initial consultation, providing an opportunity to discuss your needs, understand the process, and determine if their services align with your requirements. However, some may charge a nominal fee ranging from $50-$550 for this consultation. This consultation may be used as a filter to make sure that you are “serious” about the process, but can also be used to make it harder for you to shop around.
At Snug, you can get started for free and only pay when you’re ready to finalize your documents.
2. Estate Plan Drafting
Estate plan drafting includes the creation of essential documents such as a will, trust, power of attorney, and health care directive. In the case of a power of attorney or health care directive, these documents ensure your wishes are known and followed during life. In the case of a will or trust, they define how your estate will be managed and distributed after your death. In New York, the cost for comprehensive estate plan drafting can range from $600 to $5650 or more, depending on the complexity of your estate and the attorney's experience.
At Snug, any member can create a Power of Attorney and Health Care Directive for free. A Will costs $195 and a Trust costs $500. For many families, this is a great option to get you fully covered and save some money while doing it.
3. Document Review
If you already have estate planning documents and need them reviewed or updated, attorneys in New York typically charge between $300 and $2250. This cost varies based on the number of documents and the extent of updates required.
At Snug, you can upload and analyze any existing documents. As part of the analysis, you’ll see key details for each document and a personalized plan to update and maintain each document.
4. Individual Document Preparation
Specific document preparation, like drafting a single will or power of attorney, can cost between $100 and $550 per document. The cost depends on the complexity of the document and the attorney's experience and expertise. If you already have a baseline estate plan and only need one or two new documents, this might be a good route for you. Otherwise, it is often most cost effective to prepare all documents at once.
At Snug, you can create individual documents or entire estate plans whenever you want. Any member can create a Power of Attorney and Health Care Directive for free. A Will costs $195 and a Trust costs $500. For many families, this is a great option to get you fully covered and save some money while doing it.
5. Trust Administration
Trust administration is a multi-step process that begins after the death of the person who created the trust, known as the grantor. It involves managing and distributing the assets within the trust according to the grantor's instructions.
In New York, the costs for trust administration can range from $900 to $5650 or more, depending on the complexity of the trust and the services required. Some of the tasks that this fee might cover include:
- Identifying and inventorying all of the trust assets: This can include real estate, bank accounts, investment accounts, personal property, and more.
- Obtaining appraisals for assets if needed: Some assets may need to be appraised for their current market value.
- Paying any debts or expenses of the trust: This can involve reviewing bills and invoices, making sure they are legitimate, and then paying them from the trust assets.
- Preparing and filing any necessary tax returns: This can include both income tax and estate tax returns.
- Distributing the remaining assets to the beneficiaries as instructed in the trust: This often involves preparing new deeds or other transfer documents and working with financial institutions to transfer ownership of accounts (New York has specific laws around this).
- Addressing any legal challenges to the trust: If someone contests the trust, the attorney may need to represent the trust in court.
Probate is the legal process that happens after a person dies and leaves behind a will. It involves proving the will is valid, identifying and inventorying the deceased person's property, having the property appraised, paying debts and taxes, and distributing the remaining property as the will directs.
In New York, the cost for probate can range from $1,800 to $7,900 or more. The actual cost can vary greatly depending on whether the estate is simple or complex, and whether there are any legal disputes over the will or estate. Here are some of the services that might be included in this fee:
- Filing the will with the appropriate probate court: This involves providing the original will and a certified copy of the death certificate to the court.
- Notifying creditors and potential heirs: The law requires certain people and entities be notified of the probate proceeding.
- Identifying, inventorying, and appraising the estate assets: This can be a significant task if the deceased person had many assets or complex assets like a business.
- Paying estate debts and taxes: This might involve negotiating with creditors, selling assets to pay debts, and preparing and filing estate tax returns.
- Distributing the remaining assets to the heirs: This requires preparing the proper legal documents to transfer the assets and ensuring each heir receives what they are legally entitled to.
- Representing the estate in any legal disputes: If someone contests the will or there is a dispute over who should inherit, the attorney may need to represent the estate in court.
7. Hourly Legal Advice
For ongoing advice or assistance from an attorney, you may be charged an hourly rate. In New York, an estate planning attorney typically charges between $200 and $400 per hour.
8. Flat Fee Services
Some attorneys offer flat fee services for specific tasks, such as preparing a basic will or trust. In New York, an estate planning attorney typically charges between $300 and $3,000 or more, depending on the complexity of the task.
9. Court Fees
If your estate planning involves court proceedings, you'll have to pay court filing fees. In New York, court filing fees can range from $100 to $500 or more.
10. Notary Fees
While the cost of estate planning in New York can vary, it's an essential investment in your future and the future of your loved ones. Always ask for a detailed fee schedule or quote before hiring an attorney to ensure you understand the full scope of potential costs. Remember, the peace of mind that comes from knowing your estate is well-managed and your wishes will be honored is priceless.