Irrevocable Trust Calculator
Calculate the costs and tax benefits of establishing an irrevocable trust. Estimate setup fees, ongoing costs, and potential estate tax savings.
Trust Setup & Annual Costs
Estimate the total cost of establishing and maintaining an irrevocable trust.
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Estate Tax Savings
Calculate how much estate tax you could save by moving assets into an irrevocable trust.
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Trust Cost-Benefit Analysis
Compare the total cost of the trust against the tax savings it provides.
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Formula
Net Benefit = Estate Tax Savings (Assets x 40%) - Total Trust Costs (Setup + Annual x Years)
Frequently Asked Questions
How much does it cost to set up an irrevocable trust?
Setting up an irrevocable trust typically costs $3,000-$15,000 in attorney fees. Ongoing annual costs range from $2,000-$10,000 for trustee fees, tax preparation, and legal compliance.
What are the tax benefits of an irrevocable trust?
Irrevocable trusts remove assets from your taxable estate, potentially saving 40% in estate tax. They also provide asset protection and income tax planning opportunities.
Can you change an irrevocable trust?
While irrevocable trusts cannot be easily modified, some flexibility exists through trust decanting, judicial modification, and trust protector provisions.
Understanding Irrevocable Trusts
An irrevocable trust is a powerful estate planning tool that removes assets from your taxable estate permanently. Once funded, the grantor gives up control over the assets, which is the tradeoff for significant tax and asset protection benefits.
Common Types
- ILIT (Irrevocable Life Insurance Trust) keeps life insurance proceeds out of the estate
- GRAT transfers appreciation above the 7520 rate tax-free
- QPRT removes a residence from the estate at a discounted value
- SLAT provides indirect access to trust assets through the beneficiary spouse