NP. My husband and I just did one (we have our first on the way) for about $4000 with a reputable lawyer recommended by our financial adviser. Also included other wills/estate services for that price. We don't have a huge amount of assets now, but living in the District (with the lower exemption rate), looking at inheritances in the future, and having sizable life insurance policies made it worthwhile for us.

Anonymous wrote:Thanks to everyone who replied. Just to explain a little of my reasoning for getting a living trust. We are in our later thirties, so hopefully pretty far from passing down our estates. This is in case something terrible happens to both of us, I want to make sure our kids are well protected at least financially, avoid probate sale hassle and reduce estate taxes. I'm still learning this subject...

A living trust does nothing to reduce estate taxes.

Thanks to everyone who replied. Just to explain a little of my reasoning for getting a living trust. We are in our later thirties, so hopefully pretty far from passing down our estates. This is in case something terrible happens to both of us, I want to make sure our kids are well protected at least financially, avoid probate sale hassle and reduce estate taxes. I'm still learning this subject...

Every state has a UTMA law that allows a simple custodian/trustee for minors who are beneficiaries, but in any case a testamentary trust is as good or better for those purposes as a living trust.

Living trust is good to set up the trust for the benefit of the minor children. Most places will not allow minors to be a beneficiary so you can establish the trust, move all your assets to the trust, have the trust distribution written to benefit your children at certain ages and list your trust as beneficiary for your investments and such.

A living trust can be just as much a hassle as probate, and it's completely unnecessary for most of the assets people have, which pass by beneficiary designation (outside of probate).

NP. Probate can be a hassle. Setting up a living trust avoids probate, which can take months to settle. For some, it is just not worth the time. Also, it is easier on your executer.

We have a living trust and all I can say is to take your time preparing it - we took months. There are lots of things to think about. We opted for the $2500 option, although our lawyer offered a $4k option. The $4k option did more than we needed at the time, but we were assured that we could "upgrade" to that option if needed. So be sure you are comparing apples to apples.

Anonymous wrote:I"m the OP. The value of living trust to me is around estate planning to avoid probate sale etc.

Not PP, but I don't understand what this means.

You mean avoid selling equities/assets to pay estate taxes? Something else?

I, too, think living trusts are over-rated. What is the value of your estate now? How old are you? What do you expect the value of the estate to be in 5 or 10 yrs. (or more)?

I"m the OP. The value of living trust to me is around estate planning to avoid probate sale etc.

Why would you need a living trust for equity investments? If it's publicly traded you can just name a beneficiary for your account- make it a testamentary trust if you want.

Living trusts are very over-rated IMO.

We are planning to create a living trust soon. We have two young children, a number of investments, including both equity and real estate.

I have done some researching and know the basics. Any gotcha, things I could watch out for when putting together the living trust? Also, the price seems vary quite a bit from lawyer to lawyer, $1000- $5000 was the range i got. Is there really a difference or is it pretty much based on a boiler plate?

Thanks.