Cost to maintain a revocable trust

22 Nov 2024 · 1 min

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In this video, Jerry Taylor explains that the ongoing cost of maintaining a trust depends on whether it is revocable or irrevocable. For a revocable trust, the expenses are minimal after the initial document preparation because the grantor serves as the trustee and retains full control over assets, with no impact on taxes. The only potential costs are bank fees for a trust account and fees associated with transferring real property into the trust, which require new deeds and typically involve a lawyer preparing those deeds. He notes that similar costs would apply for other property types that need to be retitled into the trust.

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Once a trust is created, what is the cost of maintaining it? That depends on what type of trust it is, revocable or irrevocable. If it is a revocable trust, the cost is really very little, if anything, once you've created the documents. A revocable trust is really just a mirror image of you. During your lifetime, you are the trustee. You have total control over all your assets. Doesn't affect your taxes for good or bad. The only cost I could think of would be if you opened up a trust account during your lifetime, then whatever the bank's fees were for doing that, you'd have to pay those. And also, if you've got real property that needs to go into the trust, you'll have to file new deeds to do that. And the lawyer that set up your documents will most likely also prepare the deed to put your home in your trust, at least. If you've got other property, then deeds will have to be prepared for those as well. There may be fees associated with creating those deeds. And there may be