Setting up a trust fund is one of the most effective ways to protect assets, support children or grandchildren, and avoid probate. But one common question people ask before starting the process is: How much does it cost to set up a trust fund?
The answer depends on your goals, the type of trust you create, and how complex your estate is. Below, we break down costs, explain how to start a trust fund, and address tax issues and potential disadvantages—especially for Georgia residents.
How Much Does It Cost to Set Up a Trust Fund?
In Georgia, the cost to create a trust fund typically ranges from $1,200 to $3,500 or more when working with an estate planning attorney. Complex trusts or those involving blended families, business interests, or long-term distributions can cost more.
Cost Factors Include:
- Attorney fees for drafting the trust and related documents
- Customization for specific beneficiaries or conditions
- Funding the trust (transferring real estate, accounts, etc.)
- Ongoing trustee fees (if using a corporate or professional trustee)
While online tools may advertise cheap or free templates, these often don’t comply with Georgia law or fail to address tax and probate issues correctly—costing far more down the line.
👉 Learn why DIY estate plans often fall short in Georgia
How to Start a Trust Fund for a Child or Grandchild
Setting up a trust fund for children or grandchildren involves several key steps:
1. Define Your Goals
Decide:
- Who the beneficiaries are (children, grandchildren, others)
- When and how they should receive money (age milestones, education, health needs, etc.)
- What assets you want to place in the trust (cash, investments, property)
2. Choose the Right Type of Trust
For minors, common options include:
- Revocable Living Trust – Flexible and changeable during your lifetime
- Irrevocable Trust – Provides greater asset protection and potential tax advantages
- 529 Education Trust or Special Needs Trust – Tailored to specific purposes
3. Select a Trustee
This can be you (while alive), a trusted family member, or a third-party professional.
4. Draft and Sign the Trust
Work with a Georgia attorney to ensure the trust meets legal requirements and protects your intent.
5. Fund the Trust
Move assets into the trust’s name. This can include bank accounts, stocks, life insurance policies, and real estate.
👉 Explore how revocable trusts work in Georgia
Are Trust Fund Distributions Taxable?
Yes—some trust fund distributions may be taxable, depending on what the trust holds and how income is distributed.
- To the beneficiary: Distributions may be taxed as income (e.g., interest or dividends)
- To the trust itself: Undistributed income may be taxed at high trust tax rates
- Gifts to the trust: May trigger gift tax filings if above annual or lifetime limits
Proper drafting can minimize these tax impacts. A Georgia-based estate planning attorney or CPA can help structure distributions efficiently.
What Are the Disadvantages of a Trust Fund?
While trust funds offer strong protection and control, there are a few drawbacks to consider:
- Upfront cost to draft and fund the trust
- Complexity in managing and maintaining records
- Loss of control in irrevocable trusts
- Potential conflict among family members or beneficiaries
- Tax filing requirements for the trust if it holds income-generating assets
These can often be addressed with careful planning and by choosing the right trustee.
Is a Trust Fund Right for Your Family?
If you’re thinking about how to support the next generation, protect your estate, or avoid Georgia probate, a trust fund may be the right solution. But the type of trust, how much it costs, and the way it’s structured will depend on your family’s specific needs.
At Hurban Law, LLC, we help Georgia families design clear, legally sound trust plans—without the guesswork or confusion. Whether you’re planning for young children, grandchildren, or future college costs, we’ll walk you through every step.
Contact us today to start your trust fund the right way.
