How Much a Living Trust Costs to Create in New York

Having a living trust as part of your estate plan lets you bypass New York’s probate process, saving money, time and trouble. However, setting up a living trust involves some time, trouble and cost as well. Many estate planners pay attorneys to create and fund a living trust. This can cost from $1,000 for a basic living trust to $10,000 or more for complicated trusts. You can also create a valid New York living trust for no cost using downloadable templates. Or, you can spend a few hundred dollars for a more personalized output with the help of a paid online tool.

Talk to a financial advisor about your estate planning needs before deciding how you might use a living trust.

Basic Living Trust Costs

If you choose to hire a New York attorney specializing in estate law to set up your living trust, expect to pay anywhere from $1,000 to $3,000 a basic revocable living trust. In exchange for this sum, the attorney or someone on their staff will question you about your situation, draft the appropriate paperwork and facilitate transfer of assets into the trust.

If you prefer doing it yourself, you can identify multiple online sources for downloadable fill-in-the-blank templates by searching on the Internet. These will let you create a New York living trust without paying anything. Some free websites also offer tools that guide you through the process. They’ll then let you download and print the completed paperwork. For as little as $249, you can tap an online tool that will provide a more customized interview and individualized trust documents.

Other Living Trust Costs

The prices above are for a basic living trust that is revocable. This means after you set it up, you can change your mind and alter the terms of the trust, take back control of assets placed in the trust, and even dissolve it altogether. An irrevocable trust requires giving up all future control of assets placed it and is harder to modify. Thus, an irrevocable trust typically costs more.

Expect to pay an attorney an average of $6,000 for an irrevocable living trust. The cost may range from $3,000 for a simple irrevocable living trust to $10,000 or more for a more complicated one. One factor that can make a trust more complicated is having to fund it with more than one transfer of property. Seeking to exclude a close relative from the list of beneficiaries can also increase the cost. This is because the trust paperwork may have to be altered to make it better able to resist any efforts by the excluded relative to challenge the terms of the trust.

You can create your own irrevocable trust for as little as $8 using downloadable templates. This will only provide you with the paperwork creating the trust, however. If you are funding the trust with real property, such as your home, you’ll have to transfer the deed and pay a filing fee to the county clerk. The filing fee generally comes to $125 for a residential or farm property and $250 for other property types. You’ll pay a few dollars more if you have the signatures notarized. Although it will be valid if you and the trustee sign before two disinterested witnesses.

Additional Estate Plan Document Costs

A senior woman creating an estate plan online.

In addition to a living trust, a complete estate plan typically includes a number of other documents. Examples include wills and powers of attorney. Attorneys may offer bundled estate planning services, for $4,000 or so, that include a simple living trust as well as a will and powers of attorney. Online tools are typically a la carte. Here are typical costs if you pay per document:

Power of attorney. You will pay $35 or so to create one of these with an online estate planning tool, and you’ll often need two, one each for you and your spouse. Attorneys are likely to charge $250 per power of attorney or may include it as part of a bundle.
Living will: An attorney will charge about $500 to create a living will that isn’t part of a bundle. You can do it yourself with online tools for free.

Larger estates and more complicated estate plans can increase all these costs, sometimes by a wide margin. And creating your own living trust, while less costly than using an attorney, may not be a bargain if something is done incorrectly and the trusts are declared invalid or even have their validity challenged. Vague wording or failing to address a likely source of conflict can cause the process of settling an estate to cost far more in dollars than is saved by the do-it-yourself approach.

Revocable vs. Irrevocable Trusts: What’s Right for You?

Choosing between a revocable and an irrevocable trust depends on your estate planning goals, financial situation and risk tolerance. While both types can help avoid probate in New York, they serve very different purposes when it comes to flexibility, asset protection and tax planning.

A revocable trust allows you to maintain full control over the assets during your lifetime. You can amend the terms, change beneficiaries or dissolve the trust entirely. This flexibility makes it a popular choice for individuals who want to streamline asset distribution while retaining access and oversight.

In contrast, an irrevocable trust cannot be changed or dissolved once it’s created (except under limited legal circumstances). You must give up ownership and control of the assets placed into the trust. However, this trade-off comes with benefits, such as protection from creditors, potential estate tax reduction and eligibility for Medicaid long-term care planning, if structured correctly.

The chart below gives a quick comparison of some of the key features.

Feature	Revocable Trust	Irrevocable Trust
Control Over Assets	Retained by grantor	Relinquished to trustee
Amendable After Creation	Yes	No (with few exceptions)
Avoids Probate	Yes	Yes
Creditor Protection	No	Yes (if structured properly)
Estate Tax Reduction	No	Yes (assets removed from estate)
Medicaid Planning Tool	Limited effectiveness	Strong planning tool
Tax Reporting	Reported under grantor’s SSN	Separate tax ID; trust files own return

If your primary goal is convenience and avoiding probate, a revocable trust may suffice. But if you’re concerned about reducing estate taxes, shielding assets from potential lawsuits or qualifying for Medicaid, an irrevocable trust may be the better fit. An estate planning attorney can help assess which option aligns best with your goals.

Tax Considerations for Living Trusts

Tax treatment varies significantly between revocable and irrevocable living trusts, especially in New York. And knowing how each type is handled can help you avoid surprises and plan more effectively.

With a revocable living trust, there is generally no immediate tax impact. Because the grantor retains control, the IRS does not treat the trust as a separate entity. All income, dividends and capital gains generated by trust assets are reported on the grantor’s individual tax return using their Social Security number. There’s no change in how the assets are taxed compared to individual ownership.

In contrast, an irrevocable living trust is considered a separate legal entity. It requires its own Employer Identification Number (EIN) and must file a separate tax return (IRS Form 1041). Income retained by the trust may be taxed at higher rates than individual income. This is why careful planning is necessary to avoid an unexpected tax burden.

There are also estate tax implications. Assets in a revocable trust are still considered part of your taxable estate because you retain ownership. In New York, this means that if your estate exceeds the state exemption threshold (currently $7.16 million in 2025), your estate may be subject to New York estate tax, even with a revocable trust in place.

On the other hand, assets in an irrevocable trust are removed from your estate. This can help reduce or even eliminate estate tax liability if the trust is set up far enough in advance. This can be a valuable strategy for high-net-worth individuals looking to transfer wealth more efficiently to heirs.

Capital gains taxes also differ. If a revocable trust holds an appreciated asset (like real estate or stock), your heirs may still benefit from a step-up in cost basis at death, minimizing capital gains when they sell. With irrevocable trusts, the step-up in basis may be lost if the assets are transferred during your lifetime, which could result in higher taxes upon sale.

Because the tax landscape is complex and rules can change, it’s a good idea to consult a financial advisor or tax professional when creating or funding a living trust. They can help you understand the trade-offs and ensure that your trust aligns with your broader estate and tax planning strategy.

Bottom Line

A woman estimating the costs for drafting an irrevocable trust.

You can pay a New York attorney as little as $1,000 to create a simple living trust for you. Or you can do the job yourself for free using downloadable templates and online tools. Creating an irrevocable trust for a large estate as part of a complex estate plan will cost you $3,000 to $10,000 or more if you use an attorney. You may be able to draft your own irrevocable trust documents with templates and tools for little or nothing. No matter how you do it, there are likely to be other costs including filing fees for property transfers.

Estate Planning Tips

A financial advisor can provide you with insight and information about your options when you are deciding what you want to happen with your estate. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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