My parents had an attorney draw up a Living Trust
for them in 2002. I should state they live in Iowa. The trust was updated, with a few changes, in 2013. My mother passed away on Feb. 25, 2015 and I drove home from Indiana to console my 95 year old father. I was a trustee along with dad on the trust account. My father instruct me to call his Trust Attorney, D.D. and set up a time to meet with him.
My parents were married 65 years and were very close. The hospice physician stated the most likely scenario would be dad would pass within a month's time. I attended the meeting alone. D.D. asked me what I thought my mother's estate
was worth and I said around $2 million. He spoke about trusts and how we would avoid probate
. Also, since they didn't have any out-of-state real estate, ownerships in companies, or liens, etc, it would be a fairly easy trust to administer. D.D. then slide a fee agreement across the table to me, and wrote 1-1/2% flat fee or $30,546.71. He told me to sign my name and sign dad's name (then initial it) without suggesting I take it back to dad for his approval.
Upon further investigation, I could NOT find one attorney that would charge that. All said it was excessive. All that D.D. said he had to do was file the IRS 706 form and, on his recommendation, draw up sub trusts- A. for dad and B. for a survivior's trust.
My father is very upset. What is involved in drawing up a sub trust and was it necessary? Is $30,546.71 an excessive fee for doing those two things?