Understanding the Costs of Estate Planning in Kansas

Estate planning may be confronting for some people, but it is essential to plan for what happens to your assets after you pass if, like most people, you have specific wishes.

There are costs involved with planning your estate, but these can be minimized with a smart estate planning strategy. Besides, ignoring this important financial management task is likely to simply pass costs on and create legal issues for those you wish to inherit your assets.

Let us look at the main costs involved with estate planning in Kansas.

Estate planning usually begins with an initial consultation to establish your circumstances, main goals and needs, and the main options available. This may be free or charged at a fixed or hourly rate.

If you decide to proceed, the estate planning process begins in earnest with drafting your estate plan or, if you already have an estate plan and want to update it, reviewing and preparing new documentation.

Drafting your estate plan

Once your needs have been established, the necessary estate planning documents will be drafted. This is likely to include at least some of the following types of documents:

• A last will and testament
• A power of attorney
• A healthcare directive
• A trust or trusts

A will is usually the central component of an estate plan, outlining what happens to your assets after you have passed.

The power of attorney and healthcare directive enable you to decide what happens to your financial and healthcare matters while you are still alive but lose the capacity to make decisions. Trusts enable the allocation of assets to third-party beneficiaries without the assets having to pass through estate probate before legal ownership is transferred.

The costs of drafting these documents vary depending on the complexity of the estate in question—usually a fixed rate fee is quoted. An estate planning lawyer at ITR Law will be able to provide some initial estimates after the initial free consultation.

Guideline fees: $1,000-$10,000

If you already have an estate plan but need to amend or update it, most estate planning lawyers will take the time to review the existing documentation and draft an amended will, power of attorney, health care directive, and/or trust based on the needs discussed during your consultation.

This might involve one or more documents. A fixed rate is usually quoted after consultation according to the complexity of the amendments/updates.

Guideline fees: $1,000-$10,000

When a living trust is set up during estate planning, the grantor (creator) normally manages the trust but names an administrator who takes over after death.

Trust administration involves managing and distributing the assets within the trust according to the grantor’s instructions. The tasks may include the following:

• Identifying and inventorying trust assets, including real estate, bank accounts, investment accounts, personal property, etc..
• Valuing assets according to appraisals that determine the current market value.
• Reviewing bills/invoices and paying any debts or expenses of the trust.
• Preparing and filing income tax and estate tax returns.
• Distributing the remaining assets to the beneficiaries as instructed in the trust according to Kansas laws.
• If necessary, representing the trust in legal challenges.

This responsibility is often handed to a suitably qualified estate planning lawyer, who will charge appropriate fees based on the time and expertise required to administer the trust.

Guideline fees: $1,000-$10,000

When an individual who made a will passes away, his/her will must usually be probated before any assets can be distributed to beneficiaries by the executor.

The probate process is necessary to validate the will with the Kansas courts. Legal assistance is often requested with filing the will and the death certificate with the probate court—as well as with notifying estate creditors and beneficiaries of the ongoing processes.

With complex estates, a considerable amount of property may need to be identified and inventoried, appraised, and debts and taxes paid before the remaining property is distributed to beneficiaries as the will directs.

If legal disputes arise, as is sometimes the case with claimants and beneficiaries of the estate, an estate lawyer can represent the estate in court, mediation sessions, or other matters.

Guideline fees: $1,000-$10,000

In addition to the estate planning fees outlined above, sundry other fees may be required with an estate plan.

Every estate plan is unique depending on the assets held, the circumstances and wishes of the estate planner, the intended beneficiaries, and other factors. This means that every estate plan must be individually prepared.

While templates are useful as the “skeleton” for estate planning documents, be wary of a “one size fits all” approach. It takes considerable legal expertise to draft an estate plan that will result in legally enforceable action to protect assets, minimize taxes, and ultimately carry out the wishes of the estate planner.

If, for instance, an individual was married previously with children, special provisions may need to be made to accommodate the wishes of the deceased.

Opting for the cheapest DIY estate planning option can backfire and result in unintended consequences. However, you can take some steps to minimize your estate planning costs.

• Select a proven estate planning lawyer who will listen to your needs and offer seasoned estate planning advice—you should be able to assess this during an initial free consultation.
• Plan your estate plan by understanding what your main goals are, the assets/beneficiaries involved, and the main documents you need.
• Ask for an estimation of costs/rates early in the process of consulting with your estate planning lawyer—and make sure that the expected costs are in writing in a signed agreement if possible.

If you have any questions about estate wills, trusts, power of attorney or any other aspect of estate planning, speak to an estate planning lawyer at ITR Law in Topeka during a free case evaluation. We can advise you of your legal options.