How Much Does It Cost to Set Up a Trust?

Setting up a trust can cost anywhere from a few hundred dollars to several thousand, depending on factors like its complexity, legal assistance and administrative requirements. Basic trust documents are available through online services for a few hundred dollars, while working with an attorney usually ranges between $1,000 and $4,000 or more. You may also encounter additional expenses, such as court filing fees or trustee management charges. Since costs can vary widely based on your unique situation, it’s important to account for both the upfront setup costs and any ongoing maintenance fees when planning.

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What Is a Living Trust?

A trust is a legal entity that allows one party, known as a trustee, to manage assets on behalf of designated beneficiaries. Typically used in estate planning, trusts help individuals control how their wealth is preserved, managed, and distributed. The person who establishes the trust, called the grantor, sets the terms for asset management and determines how and when beneficiaries receive distributions.

There are two main categories of trusts based on timing: living trusts and testamentary trusts. A living trust takes effect during the grantor’s lifetime, while a testamentary trust is created through a will and becomes effective after death. Living trusts can be either revocable, allowing changes, or irrevocable, meaning they cannot be modified once established.

Holding assets in a trust can help bypass probate, potentially reduce estate taxes and provide legal safeguards against creditors or disputes. Whether used for passing down wealth, charitable giving, or business succession, trusts offer a flexible way to manage assets according to specific instructions.

What Can You Put in a Living Trust?

Essentially, you can put anything that you own into a living trust. Common examples include:

Bank accounts: Checking, savings, money market and certificates of deposit.
Financial investments: Stocks, bonds and other assets.
Real estate: Land and homes.
Insurance policies: Life insurance.
Tangible property: Artwork and furniture.

As an example, if you choose to put your house in a living trust, this can help your heirs avoid probate court and estate taxes, and possibly protect your home from creditors. But while the trust can be designed to avoid probate costs, it must file tax returns and value assets after you die.

You should also note that financial experts sometimes recommend not transferring certain assets to a trust. One example includes retirement assets like IRAs, 401(k)s and 403(b)s. This transfer could trigger income taxes if the retirement assets are treated as a cash out.

Health savings accounts (HSAs) and medical savings accounts (MSAs) are other examples of assets that do not get transferred to living trusts. Money for these accounts is taken pre-tax from your paycheck, therefore you don’t pay taxes on them. So putting them in a trust would not give you additional tax benefits. However, you can name a trust as a beneficiary to facilitate the distribution of assets after you die.

Finally, if you have assets in another country, you may want to confirm with an estate lawyer in that country whether you can move these international assets to a U.S.-based trust.

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How Much Does a Trust Cost?

If you hire an attorney to set up your trust, you might pay between $1,000 and $4,000. However, the overall cost will depend on whether you are single or married, how complex the trust needs to be and what state you and your assets are in.

Fees for living trusts in Ohio, for example, are likely to be different from those for living trusts in New York. Other variables include the probate or estate planning lawyer’s time and expertise. Some highly complex trusts of wealthy people cost upwards of $5,000 to $7,000.

Aside from creating a trust, there will be additional costs for drafting documents transferring property and assets into the trust. These additional costs can range from $350 to several thousand dollars. This is because the paperwork and legal filing paperwork has a fee and can take up another chunk of time to complete.

There are multiple advantages to using an attorney, though. One is that this route ensures that your trust and legal documents are prepared correctly. However, this can be an expensive option for some, so it’s also wise to consider the DIY approach when creating a living trust.

The DIY method is significantly less expensive than hiring an attorney. However, this approach can be a bit riskier because you aren’t hiring a professional to set up the trust for you. If you choose this option, you can typically use online software to build your trust, and it’ll cost you only a few hundred dollars.

There is a middle ground between hiring a lawyer to do the work or taking the DIY route: paying a lawyer to review the trust you have prepared using an online service like LegalZoom.

What’s the Difference Between a Living Trust and a Trust Fund?

A living trust is a legal arrangement you create during your lifetime to manage and distribute your assets according to your wishes. You remain in control of the trust while you’re alive, and the assets it holds can pass to beneficiaries without going through probate. This makes it a popular tool for people who want privacy, flexibility and a smoother transition of their estate after they’re gone.

A trust fund, on the other hand, refers to the assets that are placed inside any type of trust—not just a living trust. It’s the pool of money, property or investments set aside for beneficiaries under specific rules you’ve outlined. Trust funds can be created through living trusts, testamentary trusts or other trust structures designed for long-term financial support, such as funding a child’s education or providing ongoing income to a family member.

In short, the living trust is the legal structure, and the trust fund is what it holds. Understanding the distinction can help you decide which type of trust best fits your financial goals, whether you’re focused on avoiding probate, protecting assets or providing structured support to loved ones. A financial advisor or estate planning attorney can help you determine the most appropriate trust strategy based on your needs and budget.

Type of Trusts

If you’re wondering which type of trust might suit your needs, it can help to see the main options side by side. Below is a table outlining several common trust types and the benefits they offer.

Type of Trust Fund	Key Benefits
Revocable Trust	Allows flexibility to change or cancel during your lifetime; avoids probate while retaining control.
Irrevocable Trust	Provides potential tax benefits, shields assets from creditors, and removes them from your taxable estate.
Special Needs Trust	Supports a beneficiary with a disability without affecting their eligibility for government benefits.
Charitable Trust	Enables you to leave assets to a charitable cause while possibly reducing estate or income taxes.
Testamentary Trust	Created through your will and takes effect after death; can help manage and distribute assets according to your instructions.

Each trust fund serves a distinct purpose, so it’s important to match the structure with your goals — whether that’s maintaining flexibility, reducing taxes, providing for a loved one or supporting a cause you care about.

Bottom Line

A woman discussing how much it cost to set up a trust with her advisor.

Setting up a trust can be a powerful way to protect your assets, streamline estate transfers and provide long-term support for the people you care about. Understanding the difference between the trust structure itself and the trust fund it holds can help you choose the right approach for your goals and budget.

Tips for Estate Planning

Some financial advisors specifically offer estate planning services. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and 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.
If you’re passing a large estate to your beneficiaries, you may run into estate taxes. It’s important to do your research on the federal estate tax and state estate tax rates so you won’t be blindsided.