How much does a trust cost to maintain?
How much does a trust cost to maintain?
$1,500 – $20,000+ average cost per year (professional)
$0 – $4,000 average cost per year (family)
Average cost to maintain a trust
Trust maintenance fees range from $1,500 to $20,000+ per year when using a bank, professional trust company, or lawyer. If a friend or family member is in charge of maintaining your trust, they may not take a fee at all or will charge up to $4,000 per year if it takes substantial time to maintain.
| Trustee type | Average cost per year | Details |
|---|---|---|
| Professional | $1,500 – $20,000+ | 0.5% – 2.0% of assets |
| Individual / family | $0 – $4,000 | Flat, hourly, or nominal fee |
A trust is a legal arrangement that allows an individual, called a trustee, to manage a person or company's assets according to your instructions. It may also include directions for burial, power of attorney, or health care.
A trust allows an estate to pass directly to heirs as opposed to going through probate court with just a will. Trusts save time, keep your affairs private, and can reduce estate taxes.
Professional
Corporate trustees such as banks or trust companies charge $1,500 to $20,000+ per year to maintain a trust, depending on the estate size. Fees are asset-based, often 0.5% to 2% or higher for complex trusts or when they need to perform substantial ongoing administration. Larger trusts sometimes pay lower rates but higher total amounts.
Individual / family
Individual trustees often take a nominal fee or none at all, but they may charge up to $4,000 per year if they invest significant time in maintenance. Fees may be hourly, flat, or based on local laws.
However, the trust still pays for any outside professional assistance such as accounting, legal counsel, or investment management separately if the trustee requires help.
Trust maintenance fees by type
Maintaining a trust involves some or all of the following services: tax preparation, legal help, and asset management. Most permanent yearly trust expenses fall within a predictable range, but actual amounts depend on the trust complexity and asset type.
The table below shows professional charges for common trust maintenance needs:
| Cost category | Average cost | Who pays? | Details |
|---|---|---|---|
| Investment management | $1,000 – $11,500+ | Trust | Percentage of the managed assets |
| Tax preparation / accounting | $400 – $3,000 | Trust | Higher for complex or multi-state trusts |
| Legal /administrative advice | $100 – $5,000 | Trust | Hourly or flat fees billed as needed |
| State or court filing fees | $0 – $500 | Trust or beneficiary | Infrequent; applies in contested or complex cases |
Investment management
Annual investment management costs can run from $1,000 to $11,500 per year, depending on whether the trust retains professional investment advisors or not. Firms charge 0.5% to 1.5% of assets. For trusts containing only cash or one property, this sum is lower. For trusts with stock portfolios or multiple holdings, fees rise accordingly.
Tax preparation
Tax and accounting costs are $400 to $3,000 annually if someone else isn't already covering them. Filing tax returns for the trust, keeping records, and tracking disbursements require attention. Costs go up for larger trusts, multi-state property ownership, or when the trust generates substantial income that triggers more complex filings.
Legal advice
Legal and administrative work can cost $100 to $5,000 per year. Most years bring only minor costs for basic legal guidance. Major life events, such as beneficiary changes, property sales, or disputes, can drive costs to the top of this range.
Filing fees
Filing fees are $0 to $500, paid only as the local court requires. Most trusts avoid court entirely unless there are disputes or unique administrative circumstances. Filing or court action costs occur mostly in special or contested situations.
Many professional trustee services charge a minimum fee, which affects smaller estates more than large ones. Weigh your options and take minimum charges into account before hiring a firm.
Cost factors for maintaining a trust
Multiple variables affect yearly trust costs. Consider each carefully when estimating future expenses:
Type of trustee: Professional trustees charge asset-based fees, while individuals may work for minimal or no compensation.
Trust complexity: Trusts requiring frequent distributions or special conditions demand more oversight.
Asset type and quantity: Real estate, business interests, and investment portfolios raise fees due to extra management time.
Legal and tax needs: Significant legal or tax consultations increase ongoing expenses, especially after law changes or family events.
State or location: Local rules, statutory minimums, and going rates for professional services can push costs higher or lower.
Frequent updates: If you have a revocable trust, you can make changes to it while you're still alive, similar to a will. Regular changes or amendments to the trust structure or beneficiaries add to yearly legal and administrative costs.
Trust vs. will maintenance
There are two main types of trust: revocable and irrevocable. Maintaining a revocable trust includes the freedom to adjust terms or beneficiaries, which costs more but offers more flexibility and personal control. Managing an irrevocable trust often costs less but requires the trustee to follow strict, unchangeable terms.
In contrast, the only maintenance a will needs is updating as needed. This costs $0 to $2,000 depending on your state's laws and whether you hire an attorney. However, a will only takes effect upon death and requires probate court, often costing heirs time and privacy.
FAQs about maintaining a trust
Do all trusts have yearly maintenance costs?
Most trusts do, but the amounts vary. Revocable living trusts are unchangeable and would therefore incur minimal costs, especially if the grantor manages it. Hiring outside professionals, holding complex assets, or running an irrevocable trust brings higher annual expenses.
Can a family member act as trustee to save money?
Yes, family trustees can serve for low or no fee. However, the trust still must pay professional advisors when using legal, accounting, or investment services. Family trustees may face time and expertise limitations.
Are there other hidden costs to maintaining a trust?
Extra costs include property management, insurance, dispute resolution, and filing fees. The following special situations may raise annual totals:
Selling property
Ongoing beneficiary education
Repeated legal updates
How often will a trust need professional help?
It depends on the trust's size and complexity. Large trusts holding unique or multi-state assets often require routine professional management. Simple trusts with straightforward tax returns may only need help for special situations.
Getting estimates for trust maintenance services
Speak with several professionals to compare both cost and service. Use these tips to get realistic, complete fee quotes:
Request a written fee schedule from each candidate and ask what services they include.
Search reviews from previous clients on Lawful and Google.
Find out annual minimums or required service contracts.
Clarify who pays for outside investment or legal help.
Confirm all percentage fees and any hourly or flat rates.
Questions to ask an attorney
Before signing a contract or choosing a trustee, ask the following:
How is your trustee fee calculated, and what's included?
Is there a minimum annual fee, or is all pricing asset-based?
How often do you bill, and what triggers extra charges?
Will you use outside professionals, and who selects them?
Who pays for legal advice, filing, tax prep, or amendments?
What experience do you have managing trusts of this size and type?
How often do you review or update trust assets?
What happens if the trustee resigns, dies, or is removed?
Are you insured or bonded, and is there a cost to the trust?
How will communication and reporting to beneficiaries be handled?
What if a dispute arises among beneficiaries or with outsiders?
Do you offer investment management, and is it mandatory?
How do you handle conflicts of interest?
Are your fees negotiable? If so, in what situations?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.