How much does it cost to administer a trust?

The cost to administer a trust estate in California can vary depending on a few factors, like the size and complexity of the trust, the types of assets involved, and whether professional services (like attorneys or CPAs) are used. Here's a general breakdown of typical costs:

1. Trustee Fees

·         Individual trustee (family member or friend): Often serves for free or for a modest fee.

·         Professional trustee (like a bank or trust company): Usually charges 0.5% to 1.5% annually of the total trust assets under management or may charge an hourly fee depending on the complexity of the trust.

2. Attorney Fees

·         Attorneys are used to ensure proper legal compliance.

·         May charge hourly (anywhere from $300–$600/hour), or a flat fee.

·         Total costs can range from $3,000 to $10,000+, depending on complexity.

3. CPA / Tax Preparation Fees

·         Trusts must file annual tax returns (Form 1041).

·         CPA fees usually range from $500 to $2,500 annually.

4. Appraisal Fees

·         If the trust contains real estate or valuable personal property, you may need professional appraisals.

·         Real estate appraisal: Typically, $400–$1,000+ per property.

5. Other Costs

·         Title transfers/recording fees (for real estate): Around $250–$1500.

·         Bank fees or investment account fees, if applicable.

·         Bond premiums, if required (although often waived in the trust document).

Estimated Total (Ballpark):

·         Small, simple trust: $3,000 – $5,000

·         Moderate estate: $5,000 – $15,000

·         Large or complex trust: $15,000 – $50,000+

Contact Helix Law Firm if you're administering a specific trust and want a more tailored estimate!