The cost of establishing a Wyoming trust depends primarily on the type of trust, the complexity of the estate, and whether ongoing professional administration is required. Wyoming’s favorable trust laws attract clients nationwide, but the expense of taking advantage of these laws varies significantly between a simple revocable living trust and a sophisticated domestic asset protection trust with a private family trust company. Understanding the components of Wyoming trust cost helps in budgeting for proper planning.
Revocable Living Trust Costs
A basic revocable living trust in Wyoming typically costs between $1,500 and $5,000 when prepared by an attorney. This range reflects the complexity of the estate and the additional documents included in the planning package.
The lower end of this range generally applies to individuals or couples with straightforward situations: modest assets, no blended family issues, no special needs beneficiaries, and no complex tax planning requirements. The package typically includes the trust document, a pour-over will, financial power of attorney, healthcare power of attorney, and basic instructions for funding the trust.
The higher end applies when additional complexity is involved. Clients with real estate in multiple states, closely held business interests, beneficiaries requiring special provisions, or situations requiring coordination with existing trusts or prenuptial agreements require more attorney time and correspondingly higher fees.
Online services offer revocable living trust documents for $100 to $500, but these products come with significant limitations. They do not include the customization, trust funding assistance, beneficiary designation review, or ongoing relationship that professional planning provides. For reasons discussed elsewhere, online trust documents frequently fail to accomplish their intended purposes.
Wyoming does not require trusts to be registered with the state, so there are no state filing fees for creating a private trust. If real estate is transferred into the trust, county recording fees apply, typically $12 to $20 for the first page plus $3 for additional pages.
Domestic Asset Protection Trust Costs
A Wyoming domestic asset protection trust, formally known as a qualified spendthrift trust, involves substantially greater complexity and correspondingly higher costs than a basic revocable trust.
Legal fees for establishing a Wyoming DAPT typically range from $10,000 to $50,000 depending on the complexity of the structure. Factors affecting cost include the number and type of assets being transferred, whether multiple trusts are being created, the need for ancillary entities like LLCs or private family trust companies, coordination with existing estate planning documents, and the level of customization required for distribution provisions and trustee powers.
The higher end of this range applies to comprehensive asset protection plans that include private family trust companies, multiple LLCs, directed trust provisions with trust protectors and advisors, and sophisticated tax planning. A family establishing a complete structure with a private family trust company serving as trustee of a dynasty trust holding multiple LLCs should expect costs in the upper range.
Annual trustee fees add to the ongoing cost of a Wyoming DAPT. Because the trust must have at least one qualified Wyoming trustee with authority over distributions, most clients engage a professional trustee or corporate trust company. Annual fees typically range from 0.25% to 1.5% of trust assets, with minimum annual fees between $3,000 and $10,000 depending on the trustee.
Some providers advertise Wyoming asset protection trusts for $10,000 as an all-inclusive price. These typically include the trust document and basic formation but may not include the ongoing trustee relationship, private family trust company formation if desired, or the comprehensive planning that larger estates require.
Private Family Trust Company Costs
A Wyoming private family trust company allows a family to create its own trust company to serve as trustee, maintaining more control over trust administration than when using an outside corporate trustee.
Formation costs for a private family trust company typically range from $15,000 to $35,000 for legal fees, depending on the complexity of the governance structure and the number of trusts the company will serve.
Wyoming’s private trust company statute allows these companies to operate under a regulatory exemption that avoids full banking supervision, keeping compliance costs manageable. However, the company must maintain proper governance, hold regular meetings, and comply with statutory requirements.
Ongoing annual costs for a private family trust company include registered agent fees, annual report filings, administrative expenses, and potentially compensation for officers and directors. These costs vary based on how actively the company is managed but typically run several thousand dollars annually at minimum.
The break-even point for a private family trust company compared to using an outside corporate trustee is often around $5 million to $10 million in trust assets. Below this level, the formation and maintenance costs may exceed the savings compared to paying percentage-based fees to a commercial trustee.
Dynasty Trust Costs
Wyoming allows trusts to continue for up to 1,000 years, making it attractive for dynasty trust planning that spans multiple generations.
The legal fees for establishing a dynasty trust are similar to those for a domestic asset protection trust, typically in the $15,000 to $50,000 range depending on complexity. Dynasty trusts often incorporate asset protection provisions, making them functionally similar to DAPTs with extended duration.
Because dynasty trusts continue for centuries, ongoing administration costs must be considered across multiple generations. Trustee fees, tax preparation, accounting, and legal advice will be required throughout the trust’s existence. The trust should be funded with sufficient assets to cover these ongoing costs while still providing benefits to beneficiaries.
Generation-skipping transfer tax planning adds complexity and cost to dynasty trusts. Proper allocation of the grantor’s GST exemption requires careful attention to ensure the trust remains fully exempt from GST tax as assets pass to successive generations.
LLC Costs in Trust Structures
Wyoming LLCs are frequently combined with trusts for asset protection and privacy. The costs of forming and maintaining these LLCs add to the overall planning expense.
Wyoming LLC formation costs include the $100 state filing fee and registered agent fees, typically $25 to $150 annually. Legal fees for preparing the Articles of Organization and Operating Agreement vary based on complexity, ranging from a few hundred dollars for simple LLCs to several thousand for complex multi-member arrangements with detailed asset protection provisions.
Annual report fees for Wyoming LLCs are $60 for the first $300,000 of assets in Wyoming and increase modestly for larger asset values.
When trusts own multiple LLCs in a layered structure, such as a holding company LLC owned by a trust that in turn owns operating LLCs, each entity has its own formation and maintenance costs. A comprehensive structure might include several LLCs plus the trust, with aggregate annual costs of several thousand dollars.
Factors Affecting Cost
Several factors cause Wyoming trust costs to vary significantly between clients.
Estate complexity is the primary driver. A single person with a brokerage account and a house requires much less planning than a business owner with operating companies, real estate in multiple states, international assets, and multiple generations of beneficiaries to consider.
Asset protection requirements affect complexity. A simple revocable trust for probate avoidance costs less than a domestic asset protection trust with a private family trust company, directed trust provisions, and layered LLCs.
Number of trusts matters. Creating separate trusts for different purposes, such as a revocable trust for general estate planning, an irrevocable life insurance trust, and a generation-skipping dynasty trust, increases legal fees proportionally.
Ongoing administration needs affect long-term costs. A trust that requires annual accounting, tax return preparation, distribution decisions, and investment oversight will have substantial ongoing costs beyond the initial formation expense.
Geographic factors play a role. Clients working with Wyoming attorneys remotely do not incur travel costs, but those who want in-person meetings may face additional expenses.
Cost-Benefit Analysis
The costs of Wyoming trust planning should be evaluated against the potential benefits.
For asset protection trusts, the relevant comparison is the cost of establishing protection versus the potential exposure from lawsuits or creditor claims. A business owner or professional facing litigation risk may find that $25,000 in planning costs is modest compared to the assets being protected.
For dynasty trusts, the analysis considers wealth transfer across generations. Estate taxes at 40% of amounts exceeding the exemption make tax-efficient planning valuable for larger estates. A properly structured dynasty trust can remove assets from the transfer tax system permanently.
For privacy planning, the value depends on individual circumstances. Business owners, professionals in sensitive fields, or families with high profiles may place significant value on the anonymity Wyoming structures provide.
The appropriate level of planning expense correlates roughly with asset levels. Industry guidance suggests that trustee fees and administration costs balance appropriately with protection and income generation at around the $2 million asset level for domestic asset protection trusts. Clients with smaller asset bases may find simpler structures more cost-effective.
Conclusion
Wyoming trust cost ranges from $1,500 for a basic revocable living trust to $50,000 or more for comprehensive asset protection planning with private family trust companies and layered entities. Ongoing costs for trustee fees, administration, and entity maintenance add to the long-term expense. The appropriate level of investment depends on the complexity of the estate, the goals being pursued, and the assets available for protection.
For a consultation on Wyoming trust planning tailored to your situation and budget, consider consulting Mark Pierce and Matt Meuli at Wyoming Trust Attorney.