July 14, 2026

How much does a family trust cost in NZ: setup and ongoing fees

Trusts

A family trust in NZ typically costs $2,000 to $4,000 to set up and $1,500 to $3,500 per year to maintain, depending on complexity. Costs cover the trust deed, annual accounts, tax returns, and trustee meetings. Here’s a transparent breakdown.

Chances are you’ve already asked a lawyer or accountant how much a family trust costs in NZ, and heard some version of “it depends”. That’s a fair answer, but you can’t budget for it, and nobody wants to commit to fees with no figures attached. Most providers won’t publish numbers, and plenty of families sign up without knowing how much the ongoing fees will be. This guide gives you the real figures, so you can decide with confidence.

Quick summary

The cost of setting up a family trust in NZ usually lands between $2,000 and $4,000. That covers legal advice, the trust deed and transferring assets. Running costs then usually sit between $1,500 and $3,500 a year for annual accounts, tax returns and trustee meetings. If costs go over this then it is likely because there are meaningful investments held in the trust and you would likely have much of this cost anyway even if the investments were owned outside of a trust.

This guide breaks down every family trust cost NZ families face: setup fees, annual fees, and the hidden costs most people don’t see coming. Those include deed reviews under the Trusts Act 2019 and the 39% tax rate on retained trustee income over $10,000. Wind-up costs apply if the trust no longer suits. You’ll also see why a $195 DIY trust deed often costs more in the long run.

Then you can work out whether a trust is worth it for your situation. If you own a family home or other assets between Katikati and Te Puke, these figures may help.

Setting up a family trust costs $2,000 to $4,000

Setting up a family trust in NZ typically costs $2,000 to $4,000. Arnet Law’s 2026 guide quotes a similar market range: $1,000 to $5,000 in legal fees, depending on complexity. The price moves with what you’re protecting property against and how many assets you’re transferring.

Here’s where the money goes:

Setup cost	Typical range	What it covers
Legal advice and trust deed	$1,500 to $3,500	Drafting the trust deed, naming trustees and beneficiaries, structuring for your goals. The cost can be very dependent on the complexity of your plans and family structure. The scope of work will also affect the price – best practice will always be to also prepare a Memorandum of Wishes (a Will for your Trust) and update your personal Wills.
Transferring assets	$ to $1,000*	Conveyancing to move the family home or other assets into the trust. The cost is very dependent on how many assets need to be moved into the trust and whether there are mortgages to adjust etc.
Accounting setup and IRD registration	$300 to $700	The trust’s IRD number, initial records, opening a bank account

When creating a family trust, the settlor ‘settles’ the assets to the care of the trustees.

The trustees then legally own and manage the assets for everyone who’ll benefit from the trust. Most NZ family trusts are discretionary trusts, which means the trustees decide who receives what and when.

That flexibility is exactly why the trust deed needs careful drafting. It’s the rulebook for up to 125 years, the maximum duration under the Trusts Act 2019.

If you’re wondering how to make a family trust yourself to save on fees, hold that thought. We also cover DIY deeds below, because having a cheap option doesn’t mean there’s no real risk.

Annual family trust costs run $1,500 to $3,500

The annual cost of a family trust in NZ typically sits between $1,500 and $3,500. Since 2022, the IRD’s expanded trust reporting requirements have pushed compliance work up, not down. This is the number that catches some families off-guard, because it never stops while the trust exists.

Your yearly spend usually covers:

Annual accounts and tax returns: if your trust has taxable income then it requires financial statements and a tax return, prepared by an accountant. This cost is very dependent on the assets owned by the trust and the income it receives.
Trustee meetings and minutes: trustees and beneficiaries need documented decisions. Keeping accurate records isn’t optional; it’s one of the core trustee duties under trust law.
Independent or professional trustee fees: a professional trustee charges an annual fee to help manage the trust.
Gifting and administration paperwork: deeds of gift, resolutions and IRD correspondence as circumstances change.

The trust management service at Ingham Mora can bundle most of this. You’ll know the yearly figure upfront if that’s what you’d prefer, not invoice by invoice.

Hidden family trust costs catch many families out

The least discussed family trust costs are tax, deed and documentation reviews and exit or windup fees. The tax change is significant: since 1 April 2024, trustee income of $10,000 or less is generally taxed at 33%, while retained trustee income exceeding $10,000 is taxed at 39%. Sorted confirms Trust tax rates now align with the top personal income tax rate, reducing some of the previous tax advantages of retaining income in a trust.

Prepare a budget for these less obvious costs as well:

Deed and documentation reviews. The Trusts Act 2019 tightened trustees’ duties, and older deeds often need updating. A review is a one-off legal cost, but skipping it risks non-compliance.
Tax liability surprises. Distributing income to family members on lower tax rates can reduce the trust’s tax liabilities. It needs deliberate structuring and clean tax returns each year, though.
Relationship property advice. Both partners should get independent legal advice before transferring assets that could be relationship property. That adds cost at setup.
Residential care subsidy clawback. Gifts into the trust still count in the residential care subsidy assessment. Move assets late in life, and you can lose the subsidy without protecting anything.
Wind-up costs. If the trust stops earning its keep, ending it involves legal and accounting work, often some thousands as it involves updating the ownership of any properties and other assets and formal wind-up documentation.e.

None of these should scare you off. They’re simply part of the true price, and knowing them now beats finding and being surprised later.

A $195 DIY trust deed usually costs more over time

Online providers sell DIY trust deeds from $195, with LawOnline a well-known example. The deed, though, is the cheapest part of setting up a trust. The expensive part is getting the structure right. That means getting clarity of the purpose of the trust, ensuring it is properly set up so it works when you need it to, being clear on the trustee duties, tax registration, and how you transfer assets into the trust’s name to protect them properly.

The Trusts Act 2019 gives trustees mandatory duties they can’t contract out of. They must know the deed, act honestly, and act for the beneficiaries. Get the setup wrong, and a court can treat the trust as a sham. If that happens, moving assets into a trust protected nothing at all.

The New Zealand Law Society also warns that creditors may reverse transfers that were done badly. A relationship property claim may also reverse these transfers.

A DIY deed can suit a simple situation with modest assets. For a family home, a business or intergenerational wealth, tailored advice offers you a better option.

A family trust is worth the cost when the protection matters

A family trust is worth the cost when you have specific assets to protect and clear risks to protect them from. Without those, the 39% trustee tax rate and $1,500-plus annual fees now outweigh vague “just in case” benefits. When people ask how much a family trust costs, the key question is to ask what is the cost of this going wrong? I.e. What does it cost if my assets are held by me personally and then my business fails? What is a cost in dollars and stress of a family member disputing my Will?

A trust earns its keep when you want to:

Protect assets like the family home from business risk or creditors
Keep an inheritance with your children rather than their former partners
Provide for family members across generations through structured estate planning
Separate personal wealth from a higher-risk venture

It’s less compelling if your assets are modest, your risks are low, or you’d struggle with the ongoing admin. Our private clients and family trusts team sees both situations every week across the Western Bay of Plenty. We’ll tell you honestly which one you’re in.

Family trust cost FAQs

How much does it cost to set up a family trust in NZ?

Setting up a family trust in NZ typically costs $2,000 to $4,000. That covers legal advice, drafting the trust deed, and transferring assets such as the family home into the trust. What does it cost to set up a family trust at the cheapest? Around $195 for a DIY deed, but that excludes advice, conveyancing, and accounting setup.

Is it worth having a family trust in NZ?

Yes, if you have significant assets and specific risks. Having one is also ideal if you have a business, property concerns, or are engaged in intergenerational planning.

Are there disadvantages with a family trust?

One relative disadvantage is loss of direct control: the trustees legally own and manage the trust property, although this would usually include you. Running costs add $1,500 to $3,500 a year, plus compliance duties under the Trusts Act 2019 and reduced tax advantages. A trust only makes sense with a clear purpose.

Do I need a lawyer or an accountant to set up a family trust?

You’ll usually need both. A lawyer drafts the deed, and an accountant handles tax registration, annual accounts and tax structure advice. If you’d rather not act as trustee yourself, professional trustee services can take on the role. Providers typically bill trustee fees in NZ annually, alongside your accounting costs. Unless you are a trust expert yourself then it is highly recommended to involve a professional trustee to help you manage the trust. You want it to work in 20 years, not be lost in a drawer and out of date.

Get a clearer number before you commit

You came here asking how much a family trust costs, and now you have the real numbers. It’s $2,000 to $4,000 to set up, $1,500 to $3,500 a year to run, plus the hidden extras worth budgeting for. The next step is working out what those figures look like for your assets, your family and your goals.

That’s a conversation, not a contract. If you live anywhere from Katikati to Te Puke, come in for a free, no-obligation chat with our tax planning and trust specialists.

We give you straightforward answers on whether a trust suits you, and exactly what it’ll cost. No pressure, just a clearer, better-informed decision before you commit.