How much does it cost to set up a trust?

The establishment cost for a trust can vary a great deal, depending on the trust type, jurisdiction, and level of complexity in the setup. Below is a basic outline:

1. Basic Revocable Living Trust:

• Cost: $1,000 to $3,000
• Only an attorney is usually needed to draft the documents for the trust.

2. Irrevocable Trust:

• Cost: $2,000 to $5,000
• These trusts are highly complex and may be costlier to set up.

3. Types of Trust, such as Asset Protection, Family Trust, Insurance Trust:

• Cost: $3 000 to $10 000 or more
• This cost rises as the assets and the intricacy and other legal advice increase.

4. Ongoing Costs:

• Trustee Fees: When a professional trustee is appointed, they generally charge an annual fee ranging between 0.5% to 2% of trust assets.
• Administration fees: There may be additional charges for the preparation of tax, accounting, and advice from lawyers and consultants.

5. Jurisdictional Costs:

• Domestic Trusts: The above fees generally apply to trusts formed in the United States or any other first-world country.
• Offshore Trusts: Forming a trust in Hong Kong, the Cayman Islands, or any other offshore location is costlier due to the strict legal and compliance requirements.

It is always advisable to consult a legal or financial professional who can provide an appropriate estimate, since all situations differ. At One Pacific Trust, our vision is to be the leading provider of trust services.