Trust Fund Calculator
Model trust fund growth, project distributions to beneficiaries, and estimate ongoing management costs for estate planning.
Trust Fund Growth Projection
Project how a trust fund will grow over time accounting for investment returns and management fees.
Trust Distribution Planning
Calculate annual distributions to beneficiaries while maintaining the trust principal over time.
Trust Administration Cost Estimator
Estimate the total cost of establishing and maintaining a trust fund over its lifetime.
About the Trust Fund Calculator
Trust funds are foundational tools for wealthy families seeking to preserve and transfer generational wealth. Our Trust Fund Calculator helps you model the growth of trust assets over time, plan beneficiary distributions, and understand the full cost of trust administration. Whether you are establishing a new trust or managing an existing one, these projections provide valuable planning insights.
The growth projection accounts for both investment returns and management fees, providing a realistic view of how trust assets will compound. Many trust beneficiaries are surprised to learn that a $5 million trust growing at 7% with 1% annual management fees will reach approximately $14.8 million in 20 years, even after fees, demonstrating the power of long-term compounding in a professionally managed vehicle.
Understanding distribution planning is critical for both grantors and beneficiaries. Setting a distribution rate that is sustainable over the trust's intended lifespan ensures the trust can support multiple generations. Our calculator models various distribution scenarios so you can find the right balance between current income needs and long-term preservation.
Frequently Asked Questions
How much money do you need to set up a trust fund?
There is no legal minimum to establish a trust fund, but practically, most attorneys recommend at least $100,000 to justify the setup and ongoing administration costs. Complex trusts for high-net-worth families typically hold $1 million or more. Setup costs range from $2,000 to $10,000+ for attorney fees, plus annual administration fees of 0.5% to 2% of trust assets.
What is the difference between revocable and irrevocable trusts?
A revocable trust can be modified or dissolved by the grantor at any time, offering flexibility but no estate tax benefits. An irrevocable trust cannot be easily changed once established, but it removes assets from the grantor's taxable estate, providing significant estate tax savings. Irrevocable trusts also offer superior asset protection from creditors.
How are trust fund distributions taxed?
Trust distributions are taxed based on the type of income distributed. Income distributed to beneficiaries is taxed at the beneficiary's personal tax rate. Income retained in the trust is taxed at compressed trust tax brackets, reaching the highest rate (37%) at just $14,450 of income (2024). This makes distributions generally more tax-efficient than retention.
Can trust funds last forever?
Most states have a "rule against perpetuities" limiting trust duration to a life in being plus 21 years. However, several states (including South Dakota, Nevada, and Alaska) now allow dynasty trusts that can last indefinitely. Perpetual trusts are popular among ultra-wealthy families for multigenerational wealth transfer and estate tax avoidance.