Maintaining a trust involves ongoing expenses that can vary significantly depending on several factors. These costs typically include trustee fees, investment management fees, legal fees for required filings or modifications, accounting and tax preparation expenses, and potential court costs for dispute resolution. For example, a complex trust with substantial assets requiring active management will likely incur higher costs than a simple trust with a single beneficiary and minimal assets.
Effective trust administration is essential for preserving assets and ensuring they are distributed according to the grantor’s wishes. Understanding the potential expenses associated with long-term trust management allows grantors to make informed decisions during the trust’s creation. Historically, trusts have served as important tools for wealth preservation and intergenerational wealth transfer, and prudent cost management contributes significantly to achieving these goals.
