Is LegalZoom a Good Way to Create a Living Trust?

You should talk to an attorney to help you decide which is best. They'll help you make an informed decision after reviewing your estate size, family situation, state laws, and other factors.

Revocable vs. irrevocable trusts

LegalZoom's living trust is a revocable trust, meaning you can change, amend, or cancel it at any time during your lifetime. You retain full control over the assets and can add or remove property as your circumstances change. This flexibility makes revocable trusts the most popular choice for basic estate planning.

An irrevocable trust, by contrast, generally cannot be modified once it's created. While this sounds limiting, irrevocable trusts offer benefits that revocable trusts don't.

• Asset protection: Assets in an irrevocable trust are typically protected from creditors and lawsuits.
• Estate tax benefits: Assets may be removed from your taxable estate, potentially reducing estate taxes for larger estates.
• Medicaid planning: Removing assets from your taxable estate can help with eligibility for certain government benefits.

Most people creating their first trust choose a revocable living trust for its simplicity and flexibility. If you have a large estate, significant asset-protection concerns, or complex tax-planning needs, you may want to consult an attorney to determine whether an irrevocable trust makes sense for your situation.

In the trust document, you name a trustee. This is the person who manages the trust during your lifetime (if you can no longer do so yourself) and then distributes the assets to your trust beneficiaries after you are gone. You can be the trustee and name an alternate who steps in when needed.

You also name your beneficiaries and determine how and when they will receive the assets in the trust. For example, you might decide you don't want your children to get their inheritance when they turn 30 or after they have graduated from college. You can create almost any terms you want.

What are the benefits of a living trust?

Living trusts are popular because they offer many benefits and few drawbacks:

• Assets that are legally owned (titled) in the trust do not go through probate.
• Trust assets typically can be distributed faster after death, avoiding the 6-to-12-month probate process.
• You can use and spend the trust assets during your life.
• The trust can be changed or revoked at any time you choose.
• Since trusts can avoid probate court (a public proceeding), they are more private.

How much does a LegalZoom living trust cost?

LegalZoom living trust packages start at $399 for individuals, which makes them significantly more affordable than hiring a traditional estate planning attorney. Attorney-prepared living trusts typically cost between $1,500 and $4,000 or more, depending on your location and the complexity of your estate.

LegalZoom offers different package tiers to fit your needs.

• Basic package: Includes your state-specific living trust document, the option to add a pour-over will, and step-by-step guidance through the creation process
• Premium packages: Adds features like attorney document review, one-on-one attorney consultations, and assistance with deed preparation for transferring real estate into your trust

There may be additional costs beyond the LegalZoom package price. You'll likely need to pay for notarization (typically $10-$25 per signature), and if you own real estate, there may be recording fees when you transfer property deeds to your trust. Some states also charge transfer taxes or require additional documentation.

For straightforward estates, the cost savings of using LegalZoom vs. an attorney can be substantial—often $1,000 or more. However, if you have a complex estate with multiple properties, business interests, or complicated family dynamics, the additional cost of attorney guidance may be worth the investment to ensure your trust is set up correctly.

What are the living trust requirements and limitations?

There are a few things you need to keep in mind to ensure your living trust can offer you the most benefits.

• You must fund your trust: Once you sign the trust document, you must transfer the title of any asset you want into the trust's name. Bank accounts, real estate, investments, and vehicles must be placed in the name of the trust to be included.
• Trusts don't avoid estate taxes: While a living trust keeps most of your assets out of probate, it does not circumvent estate taxes. Understanding estate tax exemptions is important: the federal exemption is $15 million per individual in 2026.

How to fund your LegalZoom living trust

Creating your trust documents is only the first step—you must also transfer your assets into the trust for it to work properly. This process, called "funding" your trust, is your responsibility after you receive your completed documents from LegalZoom. An unfunded trust won't avoid probate, because the assets are still legally owned by you, not the trust.

Here's how to transfer different types of assets.

• Real estate: You'll need to prepare and record a new deed that transfers ownership from your name to your trust (for example, "John Smith, Trustee of the John Smith Living Trust"). Some LegalZoom packages include deed preparation assistance. You'll file the new deed with your county recorder's office.
• Bank accounts: Contact your bank with a copy of your trust document (or the trust certification page) and request that the account be retitled in the trust's name or that the trust be named as the beneficiary.
• Investment and brokerage accounts: Work with your broker or financial advisor to transfer accounts into the trust's name. Each institution has its own forms and procedures.
• Vehicles: Transfer the title through your state's DMV. Note that some people choose to leave vehicles out of the trust, since they can be transferred more easily by other means.
• Personal property: Create a simple assignment document listing valuable personal items (jewelry, art, collectibles) that you're transferring to the trust.

Take time to fund your trust promptly after signing your documents. Many people complete the trust paperwork but never transfer their assets, which means those assets will still go through probate when they die.

Why choose LegalZoom for your living trust?

LegalZoom offers a simple online process for creating your own living trust that is affordable, completely legit, and trustworthy. The process is smooth and convenient, and can include attorney advice and review of your documents.

A LegalZoom living trust is state-specific and goes into effect once you sign it.

When you create your living trust with LegalZoom, you decide who will benefit from your trust and who will manage it. You can download your completed documents or have LegalZoom print them on archival paper and mail them to you.

LegalZoom living trust pros and cons

Like any service, LegalZoom has advantages and limitations. Here's a balanced look at what you can expect.

Pros:

• Significant cost savings. Save $1,000 or more compared to traditional attorney fees.
• Convenience. Complete the entire process online from home, on your own schedule.
• State-specific documents. Your trust is customized to comply with your state's laws.
• Optional attorney support. Add attorney review or consultations if you want professional guidance.
• Proven track record. Over 150,000 customers have created living trusts through LegalZoom.
• Satisfaction guarantee. LegalZoom stands behind its services.

Cons:

• Limited personalized advice. The basic package doesn't include one-on-one legal counsel tailored to your specific situation.
• You're responsible for funding. LegalZoom creates the documents, but you must transfer assets into the trust yourself.
• Not ideal for complex estates. If you have business interests, properties in multiple states, or complicated family situations, you may need more customized legal help.
• No ongoing relationship. Unlike a personal attorney, you won't have someone who knows your situation when it's time to update your trust.

For most people with straightforward estates and clear wishes, LegalZoom provides an excellent balance of affordability and quality. If your situation is more complicated, consider adding the attorney consultation option or working directly with an estate planning attorney.

When to use LegalZoom vs. hiring an attorney

Choosing between LegalZoom and a traditional estate planning attorney depends on your specific circumstances. Here's a framework to help you decide.

LegalZoom is a good fit if you:

• Have a straightforward estate with standard assets (home, bank accounts, retirement accounts, personal property)
• Want basic asset distribution to your spouse, children, or other clearly identified beneficiaries
• Are comfortable with an online, self-guided process
• Want to save money without sacrificing document quality
• Have an estate under $1-2 million in total value

Consider hiring an attorney if you:

• Own a business or have complex investment structures
• Have a blended family with children from multiple marriages
• Need to provide for a special needs dependent without affecting their government benefits
• Own property in multiple states
• Have a taxable estate and need advanced tax planning strategies
• Want an ongoing relationship with someone who can update your documents over time

If you're unsure which category you fall into, LegalZoom's attorney consultation add-on offers a middle ground. You can get professional guidance on whether the standard living trust meets your needs or if you should seek more specialized help.

Why should you create a living trust as part of an estate-planning package?

A living trust solves many of your estate-planning goals, but to fully protect yourself and your family, it's a good idea to create a complete package of estate-planning documents, including:

• Last will and testament. Although your living trust will own and distribute as many assets as you want, a will should also be in place to handle assets that were not transferred to the trust or overlooked. LegalZoom's living trust includes the option to add this last will (aka a pour-over will) at no extra charge.
• Living will. A living will (also called a healthcare directive) details your wishes about what type of medical care you do and do not want to receive if you cannot make your own decisions. You can make decisions in advance about ventilators, feeding tubes, life support, and more. If you cannot, you can also name someone to make medical decisions for you.
• Power of attorney. This document authorizes the person of your choice to make financial decisions on your behalf if you cannot do so yourself.

A living trust combined with these three documents provides you with a comprehensive estate plan to help ensure you and your family are cared for in the future.

A LegalZoom living trust gives you control and flexibility over your assets and gives you peace of mind that your loved ones will be cared for when you are gone. Our trusted process and access to skilled attorneys mean you can count on them to help you carry out your wishes.

FAQs on creating a LegalZoom living trust

When is the best time to create a living trust?

The best time to create a living trust is now. While many people wait for major life events like marriage, divorce, or the birth of children or grandchildren, estate planning often gets delayed—only 13% of Americans have a living trust. Creating your living trust through LegalZoom's online platform makes it easy to get your estate plan in place from home, even when you don't have much time.

Brette Sember, J.D., contributed to this article.