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When considering your legacy, it is natural to focus on how you want your assets to benefit the people and organizations you love. But many people overlook a critical expense: the cost of wrapping up your life. How much will it cost your family to settle your estate and close out your affairs? As estate planning educator Renee Parris details, the answer depends almost entirely on one fundamental strategic decision: whether you choose to use a last will and testament or a revocable living trust.
The Hidden Drain of the Probate System
If you rely on a will as your primary estate planning document, your estate must pass through the public court process known as probate. While a will is often simpler and less expensive to draft initially, the financial and administrative toll on the back end can be considerable. Probate is a legal process, and court systems require funding. From filing fees that vary widely between neighboring counties to court costs, the expenses accumulate quickly. Attorneys, judges, and courthouse staff are all paid from the estate’s resources.
One of the most significant and unexpected expenses in probate is the appraisal process. If you own physical assets — such as land, real estate, a business, artwork, or a collection — the probate judge will often require a formal professional appraisal to determine their exact value. This is because probate fees are frequently calculated as a percentage of the total gross estate value. The appraisers must be paid, and their fees directly reduce the inheritance left for your family. Medical bills, taxes, and other debts must also be cleared before any distribution can occur.
There are a lot of things that eat away at your estate when it comes to probate. Obviously, attorneys don’t work for free. Judges don’t sit on the bench for free… If you own something and the judge doesn’t know the value of it, he will ask for the family to go get an appraisal done on it… the total net worth of everything you own gets calculated together into one giant number, and that’s how probate fees are assessed.
Renee Parris, Estate Planning, Simplified
Published estimates of total probate and administrative costs vary widely, and commonly cited figures run from a low single-digit percentage of an estate up to roughly ten percent in more complex cases. On a one million dollar estate, the upper end of that range would represent around $100,000 absorbed by court fees, appraisals, executor commissions, and legal fees rather than passing to a spouse or children. Many estates come in well below that. The consistent point is that probate is never free.
The Alternative: Low-Cost Trust Administration
On the other side of the comparison sits the revocable living trust. While a trust requires a larger initial investment of time and resources to establish and properly fund during your lifetime, the cost of administering it after your death is typically far lower. Because a properly funded trust avoids the probate court entirely, your family bypasses court filing fees, courthouse delays, and mandatory judicial appraisals. Your named successor trustee steps in to distribute your assets privately and directly according to your written instructions.
How much does it cost to administer a trust once you’re gone? Essentially, nothing. There are no probate fees. There are no filing fees… The only cost with administering a trust is if you have a trustee, they are allowed under state law to take a management fee… it’s different state to state, but some people would say let’s call it 1% of your total estate.
Renee Parris, Estate Planning, Simplified
Even where a trustee takes a statutory administration fee, which depends on state law and on whether the trustee is a professional or a family member, the overall expense is generally lower than a full probate administration. For many families, a living trust is a more efficient vehicle for transferring wealth across generations.
Weighing the Trade-Offs
Ultimately, the choice between a will and a trust comes down to a clear trade-off. A last will and testament is less expensive to set up, takes less time, and requires fewer upfront decisions — but it can leave your family with substantial expenses, public disclosure, and long delays during probate. A trust takes more time, more decisions, and a more robust package of documents up front — but it tends to minimize the eventual expense of settling your estate, leaving more of your legacy with the people you love.
About the instructor: Renee Parris is an estate planning educator with over 30 years of experience. This article is a companion piece to Renee’s course, Estate Planning, Simplified.
Sources
- AARP, guidance on law and estate planning — industry-standard estimates that probate and administrative expenses can consume a meaningful percentage of an estate’s total value, depending on complexity and local court structures.
This article is for educational purposes only and does not constitute legal, tax, or financial advice. Probate fees, appraisal requirements, and trustee administration rules vary significantly by state and county; consult a licensed estate planning attorney in your jurisdiction to understand how these rules apply to your specific estate.
