Today more than ever, costs are an important factor in making any major decision. This is true even for a New Hampshire estate plan, something needed by every individual over the age of 18. Using a revocable trust as part of your plan may increase the initial, upfront cost; however, it often saves money over the long term. Revocable trusts are a cost effective estate planning tool that can dramatically reduce the time, expense, and complication involved in administering your estate after you are gone.
5 Ways Your New Hampshire Revocable Trust May Reduce Estate Administration Costs
How does a revocable trust help to reduce costs during an estate administration? The following are a few examples:
- Avoids probate court costs and filing fees. Every state has a series of fees associated with the various stages of the probate process, from the initial filing to the closing of the estate. This is especially true if you own property in more than one state. Without a trust in place, your loved ones would need to open a probate in both states, increasing the overall administration costs substantially.
- Potentially less legal time needed by the attorney helping to administer the estate. In most cases, administering a trust is far easier and more efficient than a probate administration. This can translate into less time needed on the part of the attorney who is assisting with the trust administration. The less legal time incurred, the lower the bill that ultimately needs to be paid.
- Avoids the need to obtain a bond. In some states, and especially New Hampshire, the personal representative of your estate will be ordered to obtain a bond in order to proceed with the probate proceeding. This expense is often avoided during a trust administration, as the trust can be written to specifically remove the need for this cost.
- Minimizes costs associated with delays in the administration process. Some of the costs associated with probating an estate are associated with the waiting period between the various stages of the court process. For example, until someone is appointed personal representative of the estate, no one has authority to manage and protect estate assets. These delays can become especially costly if you are the owner of a small business or real estate. With a trust administration, the successor trustee has this authority almost immediately.
- Potentially less money spent on trustee or executor fees. Whether your estate requires a probate administration a trust administration, the person in charge, either the personal representative (of a probate estate) or the trustee (of a trust) are typically entitled to reasonable compensation for their time. Since many probate administrations are more time consuming than trust administrations, the overall cost of the trustee fee may be less than the cost of the personal representative fee for services.
In addition to the cost savings, revocable trusts provide numerous other benefits, making them a cost effective and valuable estate planning tool. Contact us today to learn more by calling (603) 434-1770.