You probably already know by now that wills and trusts have different roles to play, and while every situation is different, you may find it helpful to incorporate each into your estate plan in Oklahoma. Even if you believe that a trust may be potentially beneficial in your particular circumstances, you may be reluctant to start one because of the cost involved. If that is the case, it may surprise you to know that, according to Bankrate, the fees to engage a professional trustee for your estate are lower than the fees paid to a professional executor of a will.
In either case, fees will vary depending on the size and complexity of your estate, as well as where you live. Generally speaking, however, fees paid to a trustee whom you hire to manage your estate amount to only about 1 percent of the total assets in the trust.
Compare that to the fees that a state executor is likely to receive: typically about 2.5 percent on any assets in excess of $700,000 but less than $4 million dollars. For each tier below that, the percentage increases:
- Assets from $200,000 to $700,000: 3 percent
- Assets from $100,000 to $200,000: 4 percent
- Assets up to the first $100,000: 5 percent
You can prevent your inheritors from paying more in executor fees by putting at least some of these assets in trust, which will prevent them from going through probate.
Bear in mind that the fees cited apply only to a professional executor or trustee that you hire to manage your estate. If you choose a family member to serve either role, they will probably charge very little or nothing at all.
The information in this article is not intended as legal advice but provided for educational purposes only.