Cost to maintain a trust

3 Nov 2023 · 1 min

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In this short video, Jerry Taylor answers a common question about the annual and monthly cost of maintaining a trust. He explains that a typical revocable trust, once created and funded, incurs virtually no ongoing expense; the only time you might need to act is if a significant life event requires an amendment. By contrast, irrevocable trusts can generate fees, especially when they produce income and are administered by a third‑party trustee such as a bank or professional trust company. The video emphasizes that the standard revocable trust used to avoid probate is essentially cost‑free to maintain year‑to‑year.

Chapters

So Miss Maggie asked, what's the annual cost to maintain a trust annually and monthly? That's a very common question and I shall answer it thusly: zero. If you have a revocable trust, once it's been created and all your assets have been put into it, really is virtually no expense associated with the maintenance of it. If anything significant happens in your life, you want to at least take a look at it and see if something needs to be amended or changed. But otherwise, there really is no ongoing expense. Now, if you have an irrevocable trust or irrevocable, however you want to say it, there could be some expense associated with that, particularly if it's earning income and if it is managed by a third party like a bank or professional trustee. But the standard trust most people have to avoid probate is a revocable trust, and there's no expense to maintain it yearly. Click my picture in the link and you can stay up to date on all this.