Cost of an Asset Protection Trust in Florida

Asset protection trust costs in Florida range from $2,500 for a basic third-party irrevocable trust to $25,000 or more for a Cook Islands offshore trust. The total cost depends on the type of trust, the complexity of the client’s assets, funding requirements, and ongoing administration expenses. Each trust type offers a different level of creditor protection, and the cost generally correlates with the strength and scope of that protection.

Cost by Trust Type

Trust Type	Setup Cost	Annual Cost	Protection Level
Third-party irrevocable trust	$2,500–$7,500	$500–$2,000	Strong against beneficiary’s creditors; none against settlor’s creditors
Spousal limited access trust (SLAT)	$5,000–$10,000	$500–$2,000	Strong against beneficiary spouse’s creditors
Domestic asset protection trust (DAPT)	$5,000–$15,000	$2,000–$5,000	Moderate; depends on conflict-of-law analysis
Cook Islands offshore trust	$15,000–$25,000	$3,500–$7,000	Strongest available; assets outside U.S. court jurisdiction

The ranges above reflect attorney fees for trust drafting and initial consultation. They do not include asset transfer costs, trustee fees, or tax reporting expenses, which are discussed separately below.

Attorney Fees for Trust Drafting

The largest single expense is the attorney fee for drafting the trust agreement and advising on the trust’s structure. A straightforward third-party irrevocable trust with one or two beneficiaries, standard spendthrift and discretionary distribution provisions, and a simple funding plan typically falls at the lower end of the range.

Costs increase when the trust requires more complex provisions. A trust that includes trust protector powers, decanting authority, multiple sub-trust structures for different beneficiary lines, or coordination with existing business entities requires more drafting time and more sophisticated legal analysis. A SLAT adds complexity because the trust must be structured to avoid the reciprocal trust doctrine when both spouses create trusts for each other.

A domestic asset protection trust formed in Nevada or South Dakota involves dual-jurisdiction considerations. The attorney must draft the trust under the DAPT state’s statutes while advising on how Florida’s conflict-of-law rules may affect the trust’s enforceability. The DAPT state requires at least one resident trustee, adding coordination costs.

An offshore trust is the most expensive to establish because it involves foreign jurisdiction requirements, coordination with a foreign trust company, compliance with IRS reporting obligations, and structuring that accounts for both U.S. and foreign legal frameworks. The Cook Islands trust is the most common offshore structure, and its cost reflects the involvement of a Cook Islands trust company in the formation process.

Asset Transfer and Funding Costs

Transferring assets into the trust generates costs separate from the attorney’s drafting fee. Real estate transfers require new deeds, which cost several hundred dollars in preparation and recording fees. If the property has a mortgage, the lender may require notification or may trigger a due-on-sale clause review, though most institutional lenders do not enforce due-on-sale provisions for transfers to trusts.

Retitling financial accounts is typically free. Banks and brokerage firms process trust account retitling as a routine administrative matter. Transferring LLC membership interests requires an assignment document and may require an amendment to the LLC operating agreement, adding modest legal fees.

Offshore trust funding involves additional steps. Opening a foreign bank or brokerage account requires Know Your Customer (KYC) documentation, which the foreign trust company facilitates. Wire transfers to foreign accounts may involve bank fees of $25 to $75 per transfer. The foreign financial institution may charge account opening fees or minimum balance requirements.

Trustee Fees

A family member or friend who serves as trustee typically charges nothing. Corporate trustees charge annual fees based on a percentage of assets under management, generally ranging from 0.5% to 1.5% of trust assets. A trust holding $1 million in assets would pay between $5,000 and $15,000 annually to a corporate trustee.

Offshore trust companies charge annual administration fees rather than percentage-based fees. Cook Islands trust companies typically charge $3,500 to $7,000 per year for standard trust administration. These fees cover maintaining the trust’s registered office, holding annual meetings, maintaining trust records, and processing distribution requests.

Choosing a family member as trustee eliminates trustee fees but introduces other considerations. The family trustee must maintain proper records, file tax returns, and administer the trust in compliance with the Florida Trust Code. A family trustee who fails to maintain trust formalities may undermine the trust’s creditor protection. Some families appoint a family member as co-trustee alongside a corporate trustee to balance cost savings with professional administration.

Tax Reporting Costs

A grantor trust (the most common structure for asset protection trusts) does not require a separate income tax return. The grantor reports all trust income on their personal return, and the only additional filing may be a brief informational statement. Annual tax preparation costs for a grantor trust are minimal, often adding $200 to $500 to the grantor’s existing tax preparation fees.

A non-grantor irrevocable trust requires its own tax return (Form 1041), which costs $500 to $1,500 annually depending on the complexity of the trust’s income and deductions. Trusts with active investment portfolios, rental income, or business interests generate more complex returns at higher preparation costs.

Offshore trusts require additional IRS filings regardless of whether the trust is structured as a grantor or non-grantor trust. Form 3520 (Annual Return to Report Transactions with Foreign Trusts) and Form 3520-A (Annual Information Return of Foreign Trust with a U.S. Owner) are required annually. The penalties for late or incomplete filing are substantial. Professional preparation of these forms typically costs $1,500 to $3,000 per year and is a recurring expense for the life of the trust.

Ongoing Legal Fees

Most asset protection trusts require periodic attorney involvement after initial setup. Trust amendments, modifications to distribution provisions, changes in trustee, and responses to beneficiary life events (marriage, divorce, incapacity) may require legal review.

Annual legal maintenance costs are modest for domestic trusts. Clients who contact their attorney once or twice per year for routine questions typically spend $500 to $2,000 annually. Clients facing active litigation or creditor threats will incur substantially higher legal fees, though those costs relate to the litigation rather than the trust’s ongoing administration.

Offshore trusts generate more frequent attorney involvement because of the annual compliance requirements, coordination with the foreign trust company, and the need to review and approve trustee actions. Annual legal fees for offshore trust maintenance typically range from $1,000 to $3,000 beyond the tax preparation costs.

When the Cost Is Justified

The cost of an asset protection trust is justified when the assets at risk substantially exceed the trust’s total cost of establishment and maintenance. A general benchmark is that the assets being protected should be worth at least five to ten times the trust’s setup cost.

Florida’s statutory exemptions protect certain assets at no cost. Homestead property, retirement accounts, annuities, and life insurance cash value are all protected by Florida law without any trust structure. A person whose wealth consists primarily of exempt assets may not need a trust at all.

Non-exempt assets are where trusts provide value. Cash, taxable investment accounts, non-homestead real estate, business interests, and other exposed assets have no automatic creditor protection under Florida law. The cost of a trust structure that protects $500,000 or more in non-exempt assets is modest relative to the potential loss in a judgment.

The minimum net worth for an offshore trust to be cost-effective is generally $1 million or more in non-exempt liquid assets. Below that threshold, the annual maintenance costs consume too large a percentage of the protected assets. Domestic trust structures have lower thresholds because their ongoing costs are substantially lower.

Cost Comparison with Other Protection Tools

An LLC costs $500 to $2,000 to form and $100 to $500 annually to maintain. LLCs protect business assets and provide charging order protection for membership interests, but they do not provide the same level of personal asset protection as a trust with spendthrift and discretionary provisions.

Tenancy by the entirety costs nothing. Married couples who title assets jointly receive automatic creditor protection against individual debts under Florida law. This free protection has limitations (it does not protect against joint debts or debts of both spouses) but should be maximized before investing in trust structures.

A comprehensive asset protection plan typically combines multiple tools. The most cost-effective approach uses free statutory exemptions first, adds low-cost structures like TBE titling and LLCs next, and reserves trust structures for the assets that remain exposed after those foundational protections are in place.