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Trust Law/Level II · Do you need one?/2.2 What it costs/Lesson 1

Do-it-yourself, online forms and attorney drafting

Comparing three paths to a trust: DIY, online services, and attorneys.

Education, not legal advice. Trust law changes from country to country and state to state, and the right structure depends on your situation. Anything you sign should be drafted or reviewed by a qualified lawyer where you live.

The lean path

The cheapest, lowest-tax, simplest and most private route the law allows, best first. Each step names the rule it rests on and the condition that keeps it lawful.

  1. First test whether a trust is needed at all: beneficiary designations, POD/TOD and a free statutory will (California Probate Code §6240; Michigan MCL 700.2519) cover many simple estates. Catch: these do nothing for incapacity, so add a durable power of attorney.
  2. A DIY revocable trust needs no court filing, and you can fund it yourself with each bank’s retitling forms and a recorded deed, paying only recording fees. Catch: an unfunded trust avoids nothing, and the pour-over will must meet your state’s will formalities.
  3. An online document service suits a single-state, uncomplicated family at a set fee. Catch: it fills in forms rather than advising, and no lawyer answers for errors that surface only after death; check what funding help is included.
  4. Pay an attorney where errors cost more than the fee: a disabled beneficiary (SSI and Medicaid rules, such as 42 U.S.C. §1396p(d)(4)(A)), a business, a blended family or land in several states. Catch: get the scope and price in writing (ABA Model Rule 1.5(b)).
  5. Skip tax-planning trusts unless the estate nears the federal basic exclusion, $15 million per person for 2026 deaths. Catch: a few states levy their own estate tax at lower thresholds, so check your state before ruling tax planning out.

MaterialsA list of your current assets (bank accounts, real estate, investments)Any statutory will or trust form your state publishes (only some states have one), or a self-help book written for your stateAn account agreement from your bank showing how title is currently held

Wonder

  1. What happens if I forget to transfer an asset into the trust?
  2. Who is responsible if my DIY document has a legal error?
  3. How much does it cost to hire an attorney in my state?

Explore

  1. A trust involves three roles: the settlor (who creates and funds it), the trustee (who holds legal title), and the beneficiary (who benefits). One person can hold multiple roles, but if one person is both the sole trustee and sole beneficiary of all interests, the trust ends because ownership merges. You must decide who fills these roles before choosing how to draft the document. This decision affects control and protection.
  2. There are three common routes: do-it-yourself (DIY) with books or forms, online document services, and drafting by an attorney. DIY costs the least in money but leaves you to understand the law yourself. Online services guide you through questions for a fee, but they generally fill in documents from your answers rather than advise you on your state’s law. An attorney can tailor the documents to your family and is professionally accountable for the advice, and is usually the most expensive route.
  3. DIY can work where things are simple: a few assets, no beneficiary with a disability, and an uncomplicated family. A common failure, whichever route you take, is not ‘funding’ the trust. A living trust avoids probate only for assets actually transferred into it. If your house stays in your name alone, it is not in the trust and may still go through probate. The US Federal Trade Commission has warned that trusts sold without help transferring assets may not achieve their purpose.
  4. Blended families and beneficiaries with disabilities often need tailoring that generic forms miss. A person receiving Supplemental Security Income (SSI) or Medicaid can lose eligibility if a trust is treated as their resource. A trust holding the disabled person’s own money must meet strict federal rules, such as 42 U.S.C. §1396p(d)(4)(A) (beneficiary under 65, state payback at death); a trust funded by parents or others follows different rules. Getting this wrong can cost the beneficiary benefits, which is where state-specific advice matters most.
  5. Tax rules differ by structure and year. The US federal estate tax basic exclusion is $13.99 million per person for 2025 and $15 million for 2026, under the One Big Beautiful Bill Act of July 2025, so very few estates owe it. For the few that might, tax-planning trusts such as GRATs, or trusts using Crummey withdrawal powers, involve technical rules that general forms and books are not built to handle. Lawyers and accountants often work together on such estates.
  6. Prices vary widely by place, complexity and provider; no single price applies everywhere. Online services commonly charge set fees, while attorneys may charge a flat fee or bill by the hour. Ask any provider for the price in writing and what it includes, such as help moving assets into the trust. Cost is not only money: DIY takes your time and the effort of learning the rules. Errors may only come to light after death, when the person who made them can no longer fix them.

Key facts

  • A living trust avoids probate only for assets legally transferred into it.
  • The 2026 US federal basic exclusion is $15 million per person.
  • If the sole trustee is also the sole beneficiary, the trust ends due to merger of titles.
  • In the US, a person receiving SSI or Medicaid can lose eligibility if a trust is not drafted to meet the federal rules, such as 42 U.S.C. §1396p(d)(4)(A) for a trust holding their own money.
  • A pour-over will moves leftover assets into a trust, but those assets still pass through probate first.
  • A DIY book or online document service does not give you a lawyer who is accountable for advice about your particular state and family.

Exercise nine, six, three, one

9CollectGather 9 specific details about your current financial situation: asset types, family structure, health status, estate value, tax history, desired beneficiaries, special needs considerations, state of residence, and any existing legal documents.
6ClusterSort the 9 items into 6 categories: Assets, Family, Health, Value, Tax, and Legal History.
3DistillReduce the 6 clusters to 3 core complexity drivers: Simplicity, Special Needs/Blended Family, and Estate Size/Tax Impact.
1CrystallizeWrite 1 sentence naming your biggest complexity driver and one question you would want answered about it before choosing any drafting route.

Fact check

Dates, figures and claims checked against the published sources listed below.

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