Rich Fox Insurance Agency

💰 A lot of people avoid estate planning because they think it costs too much. The math runs the other direction.

Probate typically runs 3% to 7% of the estate value. On a $300,000 estate, that is $9,000 to $21,000 in attorney fees, court costs, executor fees, and appraisal costs. On a $500,000 estate, it can hit $35,000.

Beneficiary designations cost $0. TOD on a bank account costs $0. A TOD deed on a home costs a filing fee. A simple will runs $300 to $1,000. Even a full revocable living trust at $1,500 to $3,000 pays for itself many times over on a mid-size estate.

Then there is the time cost. Probate takes 6 to 18 months in most states. During that time, heirs generally cannot sell the home, access the accounts, or distribute anything. Assets with beneficiary designations or inside a trust transfer in days to weeks.

The cheapest estate plan matches what you actually own. For many people, that is a will, beneficiary forms, and a TOD deed.