How Much Does Trust Administration Cost in California?

One of the biggest advantages of a living trust is avoiding expensive probate fees. But trust administration isn't free—there are still costs involved.

Here's what California families can realistically expect to pay for trust administration.

Quick Answer: $3,000-$15,000 Typical

Most California trust administrations cost between $3,000-$15,000 in professional fees and expenses—a fraction of what probate would cost for the same estate.

Complex trusts with real estate sales, tax issues, or disputes can cost more. Simple trusts with cooperative beneficiaries may cost less.

Trust Administration Costs Breakdown

Attorney Fees

Unlike probate (which has statutory fees), trust administration attorney fees are negotiable and vary by:

• Complexity of the trust
• Assets involved
• Number of beneficiaries
• Geographic location
• Attorney experience

Typical fee structures:

Service Level	Cost Range	What's Included
Basic guidance	$2,000-$5,000	Advice, notice preparation, document review
Standard administration	$5,000-$10,000	Full guidance, deed preparation, tax coordination
Complex administration	$10,000-$25,000+	Disputes, real estate sales, business assets, litigation

Hourly vs. flat fee:

• Hourly rates: $300-$500/hour for probate attorneys
• Flat fees: Many attorneys offer flat fees for straightforward administrations

Accountant/CPA Fees

Trust administration involves tax obligations:

Tax Service	Cost Range
Deceased's final income tax return	$300-$800
Trust income tax return (Form 1041)	$500-$1,500
Estate tax return (if required)	$5,000-$15,000+

When you need a CPA:

• Deceased had complex finances
• Trust earns income during administration
• Real estate is sold (capital gains implications)
• Estate may owe estate taxes (over $13.61 million)

Trustee Compensation

The successor trustee is entitled to "reasonable compensation" unless the trust says otherwise.

How trustee fees work:

• Trust document may specify compensation
• If silent, trustee can charge reasonable fees
• Family member trustees often waive compensation
• Professional trustees typically charge 0.5%-1.5% of trust assets annually

Example: For a $1 million trust, professional trustee fees might be $5,000-$15,000/year.

Recording Fees

Transferring real estate requires recording deeds with the county:

Document	Cost
Trustee's deed	$25-$75 per deed
Affidavit of death (if needed)	$25-$50
Additional pages	$3-$10 per page

For a single property, expect $50-$150 in recording fees.

Appraisal Costs

Appraisals may be needed for:

• Establishing date-of-death values (stepped-up basis)
• Dividing assets among multiple beneficiaries
• Selling real estate

Appraisal Type	Cost
Real estate appraisal	$300-$600
Business valuation	$2,000-$10,000+
Personal property (art, jewelry)	$100-$500+

Not every trust administration needs appraisals. Bank accounts and publicly traded securities have easily determined values.

Miscellaneous Costs

Item	Cost
Certified death certificates (10-15)	$200-$400
Certified trust copies	$50-$100
Bank fees	Varies
Postage for notices	$20-$50
Storage/moving of personal property	Varies

Total Cost Examples

Simple Trust Administration: $4,000-$6,000

Scenario:

• One beneficiary (adult child)
• One property (transferred to child)
• Bank accounts and investments
• No disputes
• Straightforward taxes

Costs:

• Attorney (basic guidance): $3,000
• CPA (final return + trust return): $1,000
• Recording fees: $100
• Death certificates: $250
• Miscellaneous: $200
• Total: ~$4,550

Moderate Trust Administration: $8,000-$15,000

Scenario:

• Three beneficiaries
• Property to be sold
• Multiple accounts
• Some tax complexity
• Family cooperates

Costs:

• Attorney (standard administration): $7,000
• CPA (multiple returns): $2,500
• Real estate appraisal: $400
• Recording fees: $150
• Real estate closing costs: $3,000 (from sale proceeds)
• Death certificates: $300
• Miscellaneous: $300
• Total: ~$13,650 (excluding real estate commission)

Complex Trust Administration: $20,000-$40,000+

Scenario:

• Multiple beneficiaries with disputes
• Multiple properties
• Business interests
• Tax complications
• Litigation involved

Costs:

• Attorney (complex/litigation): $20,000+
• CPA (complex returns): $5,000+
• Business valuation: $5,000+
• Multiple appraisals: $1,500
• Court filing fees (if litigation): $500+
• Expert witnesses: Varies
• Total: $30,000-$50,000+

Trust Administration vs. Probate Costs

Here's why trust administration is so much cheaper:

Estate Value	Probate Statutory Fees	Typical Trust Admin	Savings
$500,000	$26,000	$6,000	$20,000
$750,000	$36,000	$8,000	$28,000
$1,000,000	$46,000	$10,000	$36,000
$1,500,000	$66,000	$12,000	$54,000
$2,000,000	$86,000	$15,000	$71,000

The math is clear: Trust administration typically saves families 75-85% compared to probate.

Who Pays Trust Administration Costs?

General Rule: The Trust Pays

Legitimate administration expenses are paid from trust assets:

• Attorney fees
• Accountant fees
• Recording costs
• Appraisals
• Other necessary expenses

This reduces the amount available for distribution to beneficiaries, but all beneficiaries share the cost proportionally.

Trustee's Personal Costs

The trustee should NOT pay administration expenses from personal funds. All costs should flow through the trust account.

Exceptions

Some costs may be allocated differently:

• Costs caused by one beneficiary's demands may be charged to that beneficiary's share
• Litigation costs may be allocated based on outcome
• Trust document may specify cost allocation

Ways to Minimize Trust Administration Costs

Be Organized

Trustees who have documents organized save attorney time:

• Locate trust document quickly
• Gather account statements
• Find deeds and titles
• Have beneficiary contact information ready

Communicate With Beneficiaries

Family disputes drive up costs dramatically. Keeping beneficiaries informed prevents:

• Suspicion that leads to demands for accountings
• Disputes over trustee decisions
• Litigation

Use Professionals Strategically

Not every task needs an attorney:

• Basic paperwork: Trustee can handle
• Collecting documents: Trustee can handle
• Legal advice and deeds: Attorney needed
• Tax returns: CPA needed

Consider Flat Fee Arrangements

Ask attorneys about flat fees for:

• Preparing required notices
• Drafting deeds
• Complete administration package

Flat fees provide cost certainty.

Don't Wait

Delays create costs:

• Additional tax returns required
• Property maintenance expenses
• Lost investment opportunities
• Interest charges on debts

Prompt administration saves money.

Do You Need an Attorney for Trust Administration?

Technically, no. California law doesn't require attorney involvement for trust administration.

Practically, usually yes. Most families benefit from professional guidance because:

• Legal notices have strict requirements
• Deeds must be drafted correctly
• Tax implications are complex
• Mistakes can mean personal liability
• Professional fees are reasonable compared to risks

When you might DIY:

• Very simple trust (one beneficiary, no real estate)
• You have legal or financial background
• All beneficiaries are cooperative
• No tax complications

When you definitely need an attorney:

• Multiple beneficiaries
• Real estate involved
• Any disputes or potential disputes
• Complex assets (business, rentals)
• Tax issues
• Beneficiaries include minors or disabled persons

Get a Cost Estimate

The Law Offices of Rozsa Gyene provides clear, upfront fee estimates for trust administration. We'll review your situation and explain exactly what to expect.

Call (818) 291-6217 for a consultation, or visit our trust administration questionnaire.

Serving Glendale, Burbank, Pasadena, and all of Los Angeles County.

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This article provides general information about trust administration costs in California. Costs vary based on specific circumstances. Consult an attorney for an estimate based on your situation.