Ever thought about setting up a family trust in Australia? The first question that likely springs to mind is: “How much does it cost to set up a trust?”
The simple answer? Setup can cost anywhere from $160 to $5000. It depends on a few things.
First, where in Australia are you setting it up? Second, do you want to use a corporate trustee? Third, how much work do you want to do yourself? Last, the professional help you pick – do you want a lawyer, an accountant, or an online service?
But remember, there are also ongoing costs to consider.
What have I done?
I recently set up several family trusts. I got quotes from various service providers and then tested them out. The services ranged from automatic online template generators to a full-service legal firm.
Everything I’m sharing with you comes straight from my own experience. I’ll share genuine insights on costs. Plus, you’ll get tips for picking the best service provider that suits your needs.
What’s in Store?
Setup Costs
When setting up a family trust, there are a few types of costs to consider. You’ve got the service company’s fee, which might come with advice or not. Then there’s the state stamp duty, which varies depending on where you’re setting up your trust.
Plus, there’s an extra cost if you want a company set up to be the trustee.
Here’s a breakdown of provider costs.
Service Costs
| Provider | New Trust Deed | Corporate Trustee Setup (ex. ASIC fee) | Trust Deed Stamp Processing* | Register for ABN/TFN | Advice Included |
| Local Accountant | $550 | +$550 | included | included | Basic advice |
| Fullstack Advisory | $1000 | +$980 | included | included | Basic advice Advanced tax advice + $1155 |
| Legal Consolidated | $385 | +$399 | excluded | included | Good form-filling advice |
| Cleardocs | $157.85 | +$207.35 | excluded | included | Basic form-filling advice |
| Legal Vision | $2475 | +$825 | +$275 | +$275 | Tailored comprehensive advice |
* Note: Trust Deed Stamp Processing is the service providers fee. The actual state stamping cost is extra.
ASIC Registration Fee
ASIC Company registration (for corporate trustee) = +$576
Trust Stamp Duty Fees
| State/Territory | Trust Stamp Duty | Deadline from Date of Deed | Reference |
| NSW | $500 | Within 90 days | Revenue NSW |
| Victoria | $200 | Within 30 days | Revenue Vic |
| Northern Territory | $20 | Within 60 days | NT Gov |
| Tasmania | Depends – see reference | Within 90 days | Revenue TAS |
| Queensland | No duty | N/A | N/A |
| South Australia | No duty | N/A | N/A |
| Western Australia | No duty | N/A | N/A |
| ACT | No duty | N/A | N/A |
The Real Deal on Trust Costs
In states with no stamp duty, you can set up a trust for $157.85. In NSW, this cost starts from $657.85, including the required stamp duty. If you bring in a lawyer, your costs could be as high as $2975.
Throwing a new company into the mix for the corporate trustee can add anywhere between $783.35 to $1401.
Surprisingly, the local accountant merely put their name on a Cleardocs trust deed. This practice, Accountants just re-using online templates, happens relatively frequently.
Considering Service Providers
Don’t just think about the cost when setting up a family trust. Consider the number of factors that go into a trust deed based on its operations. The more factors there are, the higher the risk something could go wrong if it’s not set up right from the start. Fixing these mistakes could incur significant costs later on.
Planning to buy real estate or run a business through your trust? The risks and factors you need to consider go up. The cost can be high too, especially if you need to sell and buy back assets. That’s why it might be wise to spend more at the start. Getting professional advice before you set up your family trust can save you from costly mistakes later on.
But if your trust only holds shares, there’s less to worry about. That means less risk, too. If you make a mistake, it’s cheaper to fix. So, you might pick a more budget-friendly, ready-made trust solution.
Ongoing Costs
Remember to budget for annual fees once your trust is up and running. These could include management fees, tax return fees, and other professional services. These costs can range from a few hundred to a couple of thousand dollars per year.
A local accountant gave me a quote between $1100 and $1320. It depended on the number of transactions. But, when the bill came, it was for $2000. What’s more, the job had several mistakes and wasn’t done well.
But can you do it yourself cheaper, assuming you have the proper knowledge?
BGL’s Simple Invest 360 Investor Edition is an option to consider.
- $440 for the first year
- $220 each year afterwards
This tool makes it easy to do things yourself. You can create financial statements, pull in your bank transactions, make investment reports, and do Trust Tax returns.
Don’t forget, if you have a corporate trustee, you also have to pay $290 every year for the ASIC renewal.
Wrapping Up
The cost of getting a family trust running in Australia can vary significantly. It depends on your state, if you need professional advice, and how much you can learn to do independently.
While there are costs to start and run a trust, with smart planning, you can reduce these expenses. Plus, you can get more benefits from your trust.
What’s Next?
Use what you’ve learned here and check out our Setting Up a Family Trust in Australia guide. If you want to better understand the basics there is the What is a Family Trust guide. The money you invest in setting up a trust is for your family’s future, so it’s worth doing right.
