Probate vs Trust: How a Trust SAVES You More Than It COSTS!

How much does a Living Trust really cost? What benefits does a Living Trust really provide? And what’s the cost of NOT having the right Living Trust?

By James L. Cunningham Jr., Esq.

Let’s be honest: no one wakes up in the morning thrilled to spend money on Estate Planning. But here’s the truth—not having a Living Trust will almost always cost you and your family far more.

Take a “modest” estate in California: a home worth $1 million. Without a trust, that “modest” estate will go through the probate process—the court-supervised process of validating your will—and rack up about $46,000 in probate fees. That’s $23,000 to the attorney, $23,000 to the executor, plus extra expenses. Check out the Probate fee calculator on our website for a more detailed look. 

Probate fees are based on the gross estate value—so even if that home has a $950,000 mortgage, the court still calculates fees on the full $1 million. That’s how you could end up with no equity and still pay tens of thousands in fees.

Now, to take an even closer look at probate vs trust costs, compare that to the cost of setting up a proper Living Trust with a savvy, experienced Estate Planning attorney: typically $6,000 to $10,000. You’re buying peace of mind, privacy, and—most importantly—avoiding a guaranteed 4–8% drain on the value of your estate. A Trust is pennies on the dollar.

What about bargain lawyers who charge less?  Too often those lawyers don’t charge enough to get the job done right. If that $1 million home is never put into the trust by a deed recorded with the local county assessor, the property STILL goes through probate! That costly mistake means you’re still paying $46,000 in probate fees!

Why is Probate So Painful?

Probate is painful because it’s slow, expensive, and public—exposing every detail of your finances to anyone who wants to look. But those headline numbers don’t tell the full story. 

Among the  key differences in the trust vs probate discussion, the biggest drawbacks to probate include:

Time: California probates typically drag on 12–24 months on average. That’s if everything goes right. Spoiler: it usually doesn’t.

Expensive: Probate is expensive at 4-8% of estate value! Check out the Probate fee calculator on our website to see what your estate’s Probate could cost.

Public: Every detail—your will, assets, debts, heirs, even account balances—becomes public record in the probate court process. Your future ex-daughter-in-law can see the exact asset details of your son’s inheritance.

Creditors: Probate invites creditors to file claims, real or imagined. It’s possible for an “old business partner” to show up to probate court and demand $85,000 that the family had never heard of. With probate, every claim has to be formally addressed. However, with a trust, creditors aren’t automatically invited.

Family Fights: Probate gives angry relatives a court forum to air grievances. The sibling still bitter about Christmas 1982 finally has their day in court.

Will a Bigger Estate Cost Your Family More in Probate?

Yes—a bigger estate costs dramatically more in probate, and the fees scale up fast. We’ve already seen how expensive probate can be for a $1 million estate. Now, scale the estate up to $10 million and the numbers get uglier:

First, probate eats up $226,000 right off the top.

Next, any mishandled retirement accounts can accelerate taxes. A $5 million IRA left to an estate could trigger immediate income taxes of over $2.3 million. But with the right planning, those taxes can often be deferred for 10 years.

So, what’s the total “cost” of skipping estate planning for large estates? Potentially millions.

But estate planning isn’t just for the ultra-wealthy. It’s about avoiding unnecessary costs at every level.

Does a Living Trust Do More than Save on Probate Fees?

Sure, saving money matters. But probate also magnifies stress at the worst possible time.
Executors (often family members) can face personal liability if they mismanage the process. Imagine telling Aunt Sally she can’t be reimbursed for funeral costs because she missed a filing deadline—and then being ordered by a judge to personally repay her. Yes, that happens.

And if you own a business? Without a plan, your employees could miss paychecks while the court grinds along. In California, that triggers hefty penalties. Probate is no place for payroll.

Probate vs. Living Trust: What Benefits Does a Living Trust Really Provide?

A Living Trust provides five core benefits that probate simply can’t match: cost savings, privacy, speed, tax protection, and family harmony. But when comparing probate and trust administration, the non-financial advantages often matter just as much as the money you save.

Cost Savings: People sometimes hesitate at paying $5,000–$10,000 to set up a trust, but probate on a $1 million estate costs about $46,000. Even when you add in the cost of trust administration after someone passes, it’s still a fraction of what probate drains away.

Privacy Protection: A trust keeps your life details private. Probate is a public process—your will, your assets, who inherits what, all of it goes into the public record. With a trust, the only people who see the details are the people you choose.

Speed: As we said, probate drags on 12–24 months on average. But trust administration is usually measured in months, not years.

Tax Advantages: A well-structured plan can prevent unnecessary property tax reassessments and wipe out hundreds of thousands in capital gains.

Family Harmony and Executor Protection: Clear instructions written into a trust mean fewer opportunities for family drama. But here’s something most people overlook: executors (often family members) face personal liability if they mismanage probate. Imagine telling Aunt Sally she can’t be reimbursed for funeral costs because she missed a filing deadline—and then being ordered by a judge to personally repay her. Yes, that happens.

Business Ownership: And if you own a business? Without a trust, your employees could miss paychecks while the court grinds along. In California, that triggers hefty penalties. The bottom line—probate is no place for payroll.

Complete Estate Planning: Finally, a Living Trust is also usually bundled with other essential estate planning documents: a pour-over will, powers of attorney, advance healthcare directive, HIPAA authorization, deeds, and beneficiary designations. Together, this Estate Planning bundle creates a plan for when you’re no longer around. 

Is a Living Trust Really Worth the Cost?

Another huge point for trusts in the probate vs trust conversation: Probate is designed to benefit creditors, attorneys, and the court, not for your family. But a Living Trust flips that equation, keeping control where it belongs: with you.

So, does a Living Trust cost money? Absolutely. But compared to the drain of probate—legal fees, taxes, delays, exposure—it’s one of the smartest decisions you can make.

Run the numbers yourself with our Probate Fee Calculator and see what probate would cost your estate. Then, talk with our team about building a plan that actually saves your family money, time, and stress.

Because at the end of the day, a Living Trust doesn’t just save you money—it can save your legacy.