Month: June 2025

Thinking about what happens to your stuff after you’re gone? 

Yeah, not exactly a fun topic, but it’s super important. Most people default to writing a will and calling it a day. And for a lot of people, that’s totally fine.

But sometimes, a trust is the better way to go especially if you want to make things easier for your loved ones, keep things private, or avoid the whole court process after you pass.

If you’re in Virginia and wondering who needs a Trust instead of a Will, this post is for you.

#1. You Want To Avoid Probate

Probate. It’s one of those words you probably don’t want to deal with. 

Probate is the legal process that happens after someone passes away to distribute their assets. It can take months or even years, and the whole thing can be expensive. Plus, it’s a public process, so anyone can look it up.

A trust, however, can help you avoid probate entirely. 

When you put your assets into a trust, they aren’t tied up in court. The person you’ve named as a trustee can distribute your assets without waiting for court approval. 

This means less time, fewer costs, and a lot less stress for your loved ones. That’s a big win in the world of estate planning.

#2. You Own Property In Multiple States

If you own a vacation cabin in the mountains of North Carolina and a rental condo in Florida, a will alone might trigger something called ancillary probate in each of those states. 

Basically, your estate would have to go through separate court processes in every place you own real estate. 

Yeah, it’s as annoying as it sounds.

A trust, on the other hand, can help you avoid all of that mess. 

By transferring your out-of-state properties into a living trust, you skip those extra probate hoops. Everything gets handled smoothly in one central location. 

So if you’ve got real estate across state lines, a trust could save your family a lot of time and headaches.

#3. You Have A Blended Family

Blended families are more common than ever – stepkids, second marriages, half-siblings. It’s a beautiful thing, but it can make estate planning a little complicated.

A trust lets you control exactly who gets what. 

Maybe you want your biological kids to inherit certain assets, but also want to leave something for your stepchildren. Or maybe you’re remarried and want to make sure your spouse is taken care of without accidentally disinheriting your kids from your first marriage.

Also Read: Who Needs A Will In Richmond, VA?

You can set all that up in advance with a trust. It’s very difficult to set up with a will.

A trust gives you the flexibility to avoid awkward situations or potential family drama.

#4. You Want Privacy

Wills go through probate, and probate is public. That means anyone (including nosy neighbors and curious coworkers) can look up who inherited what.

Not great if you prefer to keep things private.

So, if you want to keep the details of your estate private, a trust is your best bet.

With a trust, your assets are never part of the public record. No one will be able to see what you owned, how much it was worth, or who got it. 

It keeps things out of the spotlight and helps keep your family’s financial matters personal.

#5. You Want To Protect Minor Children

If you have kids, a trust can be a great way to ensure they’re taken care of the way you want. 

A will can appoint a guardian for your young children, but it won’t control how or when your kids get their inheritance. But with a trust, you can:

• Set up funds for your kids’ education, medical needs, or other expenses
  
• Decide at what age they’ll get access to the money
  
• Assign a trusted adult to manage everything until they’re ready

It helps make sure your kids are financially supported but not handed a large sum of money before they know how to handle it.

Also Read: How Much Does Estate Planning Cost In Virginia?

#6. You Have A Loved One With Special Needs

When someone you love has special needs, estate planning becomes even more delicate. 

A sudden inheritance through a will could unintentionally mess up their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI).

That’s a problem.

A special needs trust can help protect your loved one’s eligibility for these programs. 

It allows you to leave money to them without messing up their benefits. Plus, the money in a special needs trust can be used for things that aren’t covered by government programs, like travel, entertainment, or education. 

This ensures your loved one can live a fuller life without compromising their support systems.

#7. You Want More Control Over How And When Assets Are Used

A trust gives you a lot more control than a will on how your assets are used after you’re gone. 

You can set rules for how the money is spent. 

For example, maybe you want to leave money for your spouse but make sure it’s only used for their healthcare. Or you could decide that your kids only get their inheritance when they reach certain milestones, like graduating college or getting a job.

This level of control isn’t something you can do with a simple will. 

A will just says, “Here’s what goes to who.” A trust, however, lets you get much more specific, which can be important if you want to be sure your wishes are followed exactly.

Also Read: Can A Lien Be Placed On An Irrevocable Trust?

#8. You’re Planning For Incapacity

Wills only kick in after you pass away. But what if something happens before that? Like a car accident or medical issue that leaves you unable to make decisions?

A revocable living trust can include language about how to manage your affairs if you become incapacitated. 

You pick a trustee (a trusted person or professional) who steps in and handles things for you like paying bills, managing property and  keeping things running.

It’s one of those things people often overlook, but it’s a smart move if you want to make sure your affairs are in order, no matter what happens.

#9. You Have A High Net Worth

If your estate is worth a lot (like $5 million or more), taxes can start chipping away at your legacy. Virginia doesn’t have its own estate tax, but federal estate taxes still apply if your estate hits the threshold.

Certain types of trusts like irrevocable life insurance trusts (ILITs) or credit shelter trusts can help reduce the impact of those taxes. 

It’s a more advanced strategy, but totally worth exploring if you’ve built up significant wealth and want to protect it for future generations.

Plus, high-value estates often include businesses, investments, and multiple properties. 

A trust can keep everything better organized and easier to manage long-term.

Bottom Line

At the end of the day, deciding between a will and a trust comes down to what works best for your situation.

Trusts offer a lot of benefits, from avoiding probate to providing extra control over your assets. Plus it offers more flexibility and peace of mind if you have a complicated family situation, minor children, or significant assets.

So, think about your personal situation. If you’re not sure, talking with an estate planning attorney can help you figure out what’s best for you.

Setting up a trust in Virginia can be a smart move for protecting your assets, avoiding probate, and making sure your beneficiaries receive their inheritance smoothly.

But how much does it actually cost? It can cost anywhere between $500 and $10,000.

The exact price depends on the type of trust you need, how complicated your assets are, and who’s handling the paperwork.

In this guide, we’ll break down the costs of setting up a trust in Virginia, what influences the price

How Much Does It Cost To Set Up A Trust?

Setting up a trust can cost anywhere from $500 to $10,000 in Virginia.

If you’re just looking to set up a simple trust to avoid probate or manage your assets, you’ll likely be on the lower end of that spectrum.

Here’s a general idea of what you can expect to pay for different types of trusts:

• Revocable Living Trust: $1,500 – $4,000
• Irrevocable Trust: $3,000 – $7,000+
• Special Needs Trust: $2,000 – $5,000
• Charitable Trusts: $3,000 – $10,000+
• Testamentary Trusts: $500-$2,000 (Initial cost included in will preparation)

Also Check Out Our: Richmond Trust Services

Our Trust Set Up Fees In Virginia

Our advanced estate planning package – which includes a Trust, Will, Medical Directives, and Power of Attorney – runs from a few thousand dollars to several thousand.

The exact amount depends on the complexity of your situation.

Every family has different goals when it comes to protecting assets and planning for the future, so we tailor each package based on your specific needs.

We’ll walk you through everything step by step and give you clear pricing before any work begins.

Factors That Affect The Cost Of Setting Up A Trust

There are a few things that will affect how much setting up a trust will cost you in Virginia:

#1 Type Of Trust

The first thing that affects the cost of setting up a trust is the type of trust you decide on. 

Trusts can be simple or more complex. A basic revocable living trust, for example, is usually on the less expensive side. But if you’re dealing with a special needs trust, an irrevocable trust, or a charitable trust, things get a little more complicated. 

The more specialized your trust, the more it’s likely to cost. 

Some trusts require more legal work, more paperwork, and more specific terms, which means more time spent setting it up.

#2 Complexity Of Your Estate

The more stuff you own, the more it costs to organize it all. Simple math! 

If you have a house, a retirement account, and some savings, your trust will be less expensive than if you own multiple properties, a business, investments, and collectibles.

Complex family situations also drive up costs. Blended families, children with special needs, or specific inheritance conditions all require more detailed planning. 

Each special provision adds to the attorney’s time and your bill.

Geographic considerations matter too. If you own property in multiple states or countries, you’ll need additional provisions in your trust.

Also Read: How Much Does Estate Planning Cost In Virginia?

#3 Attorney Fees 

One of the biggest costs of setting up a trust is the fees you’ll pay to an attorney. 

Different attorneys have different rates for trusts so the attorneys you go to will affect your price.

Some attorneys in Virginia charge by the hour too. They can range from $250 to $450 per hour for estate planning work. A simple trust might take 4-8 hours of their time, while complex ones can take much longer.

There are some DIY options as well that can save you a lot of money, but there’s always a risk of something being missed or set up incorrectly. 

#4 Trust Funding Costs

Creating the trust document is just step one. You also need to fund it – transferring assets into the trust’s name. This process comes with its own costs that people often forget to budget for.

Real estate transfers in Virginia require filing fees and possibly transfer taxes. Each county sets its own fees, but expect to pay recording fees of $25-$50 per deed. 

Some attorneys include a limited number of deed transfers in their packages, but others will charge for them separately.

And don’t forget potential appraisal costs for valuable assets. Sometimes you need professional valuations when transferring certain property into a trust. 

This could add hundreds or even thousands to your total costs.

Also Read: The Benefits of an Irrevocable Life Insurance Trust

#5 Trustee And Management Fees

Will you serve as your own trustee or hire someone else? 

If you’re using a professional trustee like a bank or trust company, expect to pay annual management fees. These usually range from 0.5% and 1% of the trust’s total assets annually.

The more complex the trust, the higher the fees are likely to be.

Individual trustees (like family members) might serve for free or for a smaller fee. 

But professional trustees bring expertise and objectivity that can be worth the cost – especially for larger estates or complicated family dynamics.

Some trusts require special services like investment management or tax preparation. These additional services come with their own fees that add to the ongoing cost of maintaining your trust.

#6 Tax And Accounting Considerations

Another thing to think about is taxes. 

Certain trusts require separate tax identification numbers and annual tax filings. This means paying for tax preparation services, which can run $500+ annually depending on complexity.

Plus most estate tax planning trusts (like irrevocable life insurance trusts or qualified personal residence trusts) need specialized tax advice. 

This expertise doesn’t come cheap – expect attorney fees and ongoing tax consultation costs.

Now the good news is that Virginia doesn’t have a state estate tax, which simplifies things compared to some other states. But federal estate tax considerations still apply for larger estates.

Bottom Line

Setting up a trust in Virginia can cost anywhere from $500 to $10,000 depending on your choices and needs.

For most people, working with an attorney on a revocable living trust will run $1,500-$3,000 – an investment that often pays for itself by avoiding probate and creating peace of mind.