What It Costs to Set up an Asset Protection Trust

An asset protection trust is either a domestic irrevocable trust or an offshore trust. They have different costs depending on the type of trust.

Initial Setup Costs

The main expense is the cost of establishing the trust itself. Setting up an asset protection trust isn’t something you can handle without a lawyer, as these trusts are complex.

In Florida, the cost to create an asset protection trust ranges from $5,000 to $15,000 for most situations. This fee covers the work involved in drafting the trust document, reviewing your financial situation, and ensuring that the trust complies with Florida law and that it meets your objectives.

The variation in pricing depends on the complexity of your estate and the attorney’s experience. Some people may need additional trust structures or legal strategies to fully protect their assets. Better attorneys tend to charge more money to draft the trust.

Funding the Trust

Once the trust document is drafted and signed, the next step is funding the trust. This means transferring assets—such as real estate, bank accounts, and investments—into the trust. The costs associated with funding an asset protection trust are separate from the initial legal fees and depend on the types of assets being transferred.

For real estate, you’ll need to pay for new deeds to transfer property into the trust, which can cost a few hundred dollars in legal fees. Recording fees are minimal unless there is an existing mortgage on the property.

Moving financial accounts into the trust should not involve any fees.

Trustee Fees

Hiring a corporate trustee involves ongoing fees that range from 0.5% to 1.5% of the assets under management. For example, if your trust holds $1 million in assets, you could pay anywhere from $5,000 to $15,000 per year in trustee fees. These fees cover the administration, management, and distribution of the trust’s assets, and ensure that the trustee adheres to their fiduciary duties.

Some people choose a family member as a trustee, which lowers the cost.

Ongoing Maintenance and Legal Fees

After the initial setup and funding, there can be ongoing costs involved in maintaining an asset protection trust.

Legal fees for ongoing trust management vary but are typically charged on an hourly basis or through a flat retainer. These costs can range from a few hundred to several thousand dollars per year, depending on the complexity of your trust and how often you need to consult with your attorney.