How much does a testamentary trust cost?
Drafting a testamentary trust adds $1,000-$2,500 to a will. Ongoing costs include trustee fees and accounting. Here's the full picture.
Drafting a testamentary trust within a will typically costs an additional $1,000 to $2,500, on top of the base will fee. Ongoing administration costs – trustee fees, accounting, annual tax returns – vary based on the trustee and the complexity, typically $1,000 to $3,000 per year while the trust operates.
Drafting cost
Simple testamentary trust provisions within a will: $1,000-$1,500 extra. Complex structures with multiple sub-trusts, detailed distribution rules, and trustee succession planning: $2,500-$5,000 extra. Package pricing for wills plus testamentary trusts is usually the cleanest option.
Ongoing administration
Once the trust is active (after the testator's death), ongoing costs include annual tax returns, trustee record-keeping, and any professional trustee fees. For most family-run testamentary trusts, ongoing cost is $1,000-$2,000 per year. Professionally managed trusts run higher.
When the cost is worth it
Testamentary trusts typically pay for themselves when: inherited income exceeds around $50,000/year, minor beneficiaries are involved, asset protection is genuinely needed, or the inheritance is substantial. For small estates or adult beneficiaries with simple circumstances, a straight will is usually better.
Fixed fees vs hourly
Most succession lawyers now offer fixed-fee testamentary trust drafting. This is almost always the right choice – hourly billing can inflate significantly for complex drafting, and fixed fees give certainty.
Summary
Drafting a testamentary trust adds $1,000-$2,500 to a will. Ongoing costs include trustee fees and accounting. Here's the full picture.
Talk to Sam about your situation
If this article raised questions for your own circumstances, Sam Michele offers free 20-minute initial consultations. Learn more about our testamentary trust work, or book a consultation.
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Disclaimer: This article is general information only and does not constitute legal advice. Estate planning is deeply personal - every family's circumstances are different. For advice specific to your situation, please contact Rosewood Succession Solicitors.