How Much Money Do You Need to Open an Offshore Trust?

An offshore trust is a powerful tool that is definitely worth considering if you are seeking reliable protection for your wealth. But the big question is: how much will you have to invest before you successfully open an offshore trust? Is it worth it?  We have compiled this guide to introduce you to the main costs and considerations that will help you make an informed decision. No unnecessary mistakes, no hidden fees, just clear steps.

Offshore Trusts Explained

Offshore trusts are based on a time-proven legal concept. Offshore trusts are governed by foreign laws, which makes them unique, and the foreign jurisdictions offer more privacy and asset protection, as well as benign taxation.

What Is an Offshore Trust?

An offshore trust is a legal structure that you set up in a foreign jurisdiction where you want your assets to be managed/protected. A trust involves three parties: the settlor (you), the trustee (a third party who manages the trust), and the beneficiaries (the people or entities who benefit from the trust). The unique element of an offshore trust is its location: it is covered by local laws rather than those effective in your home country.

Offshore trusts are often used for:

• Asset protection against lawsuits or creditors
• Estate planning and inheritance
• Privacy and confidentiality
• Cross-border investment structuring

They are particularly valuable for high-net-worth individuals (HNWIs), business owners, and families with international ties. These structures provide continuity across generations. Your wealth is passed on smoothly, without the delays or probate.

Offshore trusts are often used to preserve family values and long-term wishes. The trust deed may contain particular instructions on how funds should be used to support education, maintain family businesses, or for other purposes.

What Does It Mean to “Set Up” a Trust Offshore?

We have examined the concept of an offshore trust. But what does it mean to set one up, and how does it work?

In brief, you choose the right jurisdiction, select a trustee licensed to operate there, and draft a trust deed to set up an offshore trust. The deed outlines the rules of the trust, how assets are managed, how assets are allocated to beneficiaries, and what powers the trustee holds.

The setup process also involves:

• Transferring asset ownership to the trust
• Paying setup and legal fees
• Ensuring compliance with home-country and international reporting laws (like FATCA and CRS)

First, you schedule a one-on-one consultation with us. In this complimentary session, our advisor helps you shortlist the jurisdictions that best suit your goals. After you take this step, legal documents are drafted and reviewed by local counsel. Once the trust is signed and assets are transferred, the trust can begin operating.

As soon as the trust is established, it becomes a separate legal entity that is not related to you. This is where the power of asset protection begins. Creditors, courts, or even ex-spouses in your home country will struggle to reach a properly structured and compliant foreign trust. Plus, your assets are safe from global and economic instability. 

Establishing a trust offshore is more than just creating a legal wrapper. It’s about building a long-term strategy that balances control, protection, tax planning, and legacy. Having a trust offshore is one of the smartest moves you can make to preserve your wealth (if everything is done professionally).

Before we go through the numbers, we will explain what actually drives the cost of an offshore trust. Several elements influence pricing, and knowing them upfront can save you from expensive surprises.

Factors That Affect Offshore Trust Cost

What variables can impact the amount payable for an offshore trust? See the list below. Each of them can shape your upfront investment and the amount you will pay year after year. Understanding them in advance can help you adjust your offshore trust strategy to meet your personal needs.

Jurisdiction

The jurisdiction you select will shape every other aspect of your offshore trust. You will find different legal benefits and price tags in each offshore destination. Here are several popular ones:

• Nevis: Simplicity, speed, and strong asset protection laws are among its strengths.
• Cook Islands: The platinum standard for asset protection trusts.
• Belize: Popular for cost-effective family trusts.

The regulations and setup processes differ for each, but we will provide you with all the necessary information. Some jurisdictions have fast-track registration processes and minimal local oversight. In others, checks may be much more rigorous, but they provide stronger court-tested protections instead. Choosing the right one depends on your goals, the complexity of your trust, and the value of the assets to be placed into it.

Understanding where to set up your trust is just the beginning. The next factor that affects cost is the type of trust structure you choose.

Type of Trust

Location is critical. However, the nature of your trust plays an equally important role in determining cost and compliance obligations. Your trust’s purpose directly influences how much money you’ll need to open it and maintain it. Trusts designed for simple wealth transfer may involve minimal oversight, while structures intended for offshore asset protection, especially when litigation is a concern, demand far more attention to legal detail and trustee roles. For example:

• Asset protection trust: Designed to keep assets safe from legal risks; more complex, therefore more costly.
• Family trust: Used for inheritance and estate planning; simpler and cheaper.
• Charitable trust: Requires strict compliance, but may come with tax benefits.

If you’re unsure about which type fits you best, check out this trust comparison guide.

Another important cost driver is what you actually place into the trust. Some assets are significantly more complex and expensive to manage than others.

Value and Nature of Assets Held

The third factor is the actual content of the trust. The type and size of your assets matter. Real estate requires more legal work than a stock portfolio. If you own:

• High-value real estate
• Multi-jurisdictional business assets
• Cryptocurrencies
• Intellectual property

…you’ll need a trust tailored for these asset classes — and that comes with higher fees and more complex documentation. For example, a trust that holds foreign real estate across three countries will require coordination with multiple legal systems, appraisers, and tax advisers. Meanwhile, holding a single brokerage account or small business interest may involve much simpler reporting obligations.

Finally, we can’t overlook the professional fees involved in creating and running your trust.

Legal, Trustee, and Setup Fees

The fourth cost driver is the array of professional services required to establish and maintain your offshore trust. Setup fees typically include:

• Legal drafting of the trust deed
• Initial consultations
• Trustee onboarding
• Filing with the jurisdiction

These upfront fees vary from 10,000 to 50,000 USD, depending on jurisdiction and complexity. If your trust involves complex terms or asset types, requires custom legal clauses, or includes third-party appointees like protectors or investment managers, you’ll likely pay on the higher end of this range.

Now that you know what influences the pricing, let’s take a look at how much money you actually need to open an offshore trust, including average setup and recurring fees.

Average Cost to Set Up an Offshore Trust

Let’s move from general factors to specific figures. In this section, we’ll focus on one of the most trusted and widely recommended offshore trust structures in the world: the Nevis trust.

Why Nevis? Well, this is the gold standard in the realm of trusts that combines affordability, privacy, and court-tested reliability, and all asset protection attorneys recommend it. The Nevis International Exempt Trust Ordinance offers some of the strongest asset protection laws globally. First of all, foreign court judgments are not recognized, and your creditors will have to re-litigate locally. Second, it has a strict two-year statute of limitations for creditor claims.

By focusing on the Nevis trust, we can provide you with a realistic picture of what you’ll likely pay and why it’s worth it.

Initial Setup Costs

There is no clear question for all trusts, as the prices vary, and depend on specific costs that each jurisdiction may apply. Nevis remains remarkably cost-efficient when compared to other leading jurisdictions, such as the Cook Islands, where entry-level setup often starts at 25,000 USD. 

Generally, if your structure involves a Nevis LLC or multiple layers of ownership (which is common for advanced offshore asset protection), the legal work may be more complex and push the total setup closer to 12,000–18,000 USD. 

When you take the task on yourself, you will pay for legal consultations, deed preparations, and other services. However, with our assistance, we include various services in one fee, and explain up front any other costs you will encounter. 

Annual Maintenance and Trustee Costs

After the initial setup, you’ll need to account for yearly expenses to keep your Nevis trust in good standing and compliant with international regulations:

• Trustee fees: 3500–5,000 USD/year
• Registered agent fees: 2500 USD/year
• Compliance (FATCA/CRS, audits, etc.): 1,500–3,000 USD/year

These maintenance costs are predictable and scalable depending on the trust’s complexity and the number of assets under management. If the trust includes active investments or complex reporting obligations, you’ll likely pay toward the higher end.

Hidden Costs to Consider

Some costs might not be obvious at the beginning, but they’re important to anticipate:

• Asset transfer fees (especially for real estate or IP)
• Currency exchange costs if you’re funding the trust in USD but transferring from EUR or GBP
• Specialist consultations (lawyers, accountants, or investment advisors): 1500–3,000 USD on demand
• Trust deed amendments or structural updates over time

These will not always be part of your annual maintenance. Still, you will likely pay them at some point as your trust evolves.

Is an Offshore Trust Worth the Cost?

This is where the decision gets personal. Is the price of setting up and maintaining an offshore trust justified by the value it provides? You need the trust to justify its own cost, but it will vary depending on many factors. 

What is noteworthy is that there is no strict legal minimum, but that doesn’t mean you can open a trust with a few thousand dollars. 

Whether an offshore cost is worth the costs depends on the financial goals you set and your risk profile. Let’s take a closer look at how this plays out across different levels of wealth.

Pros and Cons Based on Wealth Tier

• Low-net-worth (<250,000 USD): Trust cost outweighs benefits.
• Mid-tier (250,000–1M USD): Justifiable if risks exist.
• High-net-worth (1M+ USD): Cost-effective wealth safeguard.

Note, these figures are not hard ones that determine if you need a trust or not. They are provided to give you an understanding, and it is preferable to get a consultation. 

Asset protection trusts are not for everyone. But, they are essential if you are exposed to lawsuits, divorce, or political instability. The higher your risk, the more benefits an offshore cost brings, and it is definitely more worthwhile, even if your assets aren’t at high-net-worth levels. 

If you are high-net-worth or ultra-high-net-worth, then you should definitely consider an offshore trust. The other reality is that the world is more unstable, and countries like the USA are increasingly litigious, so risk is increasing in that regard as well, and you should consider how protected your assets are. 

Comparison to Domestic Trust Options

You may realize you need a trust. But, do you need an offshore trust? Domestic trusts are easier to set up and maintain, but offer less legal protection. They are also more vulnerable to court orders in your home country.

A bulletproof offshore trust, like those in Nevis, offers unmatched legal resistance. More on this here. Generally, you have more privacy, stronger legal protections, more beneficial tax regimes, and access to quality financial services in a reputable jurisdiction. 

When It Makes Financial Sense

Opening an offshore trust makes sense when:

• You own assets in risky sectors
• You face potential lawsuits or divorce
• You want estate planning without probate
• You need offshore protection of assets from political volatility

Before you jump in, it’s vital to understand the regulatory and tax responsibilities that come with offshore trusts. Compliance is the backbone of a successful structure.

Legal and Tax Implications of Offshore Trusts

Legal compliance and tax implications aren’t just fine print — they determine whether your offshore trust functions properly or backfires. Let’s start with the basics: global reporting requirements.

Compliance

All foreign trust structures must be reported if you are a U.S. citizen, EU resident, or live in a CRS-participating country. You will need:

• FATCA compliance
• CRS registration
• Proof of asset origin (anti-money laundering laws)
• KYC verification of all parties involved

Potential Tax Benefits or Liabilities

Properly structured, an offshore trust can:

• Defer or minimize estate taxes
• Offer tax-neutral growth for investments
• Allow succession planning with lower tax exposure

But mishandling it can create:

• Double taxation
• IRS penalties
• Asset forfeiture in worst-case scenarios

You’ll likely pay more in tax advice upfront, but it’s worth it.

Common Misconceptions

• Myth: Offshore trusts are illegal — False. When done right, they are 100% legal.
• Myth: You lose access to your money — False. Trustees act in your interest, and you can retain certain powers.
• Myth: It’s only for the ultra-rich — False. Many mid-level investors use offshore trusts for inheritance planning.

By now, you likely have a good grasp of the what, why, and how much. But how do you actually move forward? The final step is choosing the right strategy tailored to your needs.

Choosing the Right Offshore Trust Strategy

You’ve seen the costs, weighed the risks, and explored the benefits. Now comes the action plan. If you’re ready to move forward, here’s how the process begins.

Steps to Get Started

Want to get started? Here’s how:

1. Book a call with an expert (contact us here)
2. Identify the assets to protect
3. Match your goals with the right jurisdiction (read this)
4. Draft legal paperwork
5. Move assets safely (step-by-step guide)

We handle the entire process for you — no stress, no surprises.

How to Match Jurisdiction to Goals

Every trust structure should match:

• Your residency and tax status
• The nature of your assets (liquid vs. real estate)
• Your risk profile
• Your estate planning goals

Need help? Our advisors know what’s best for each scenario.

What to Ask a Trust Advisor

Before setting up an offshore trust, ask:

• What’s the all-in cost?
• Are there any annual maintenance fees?
• Do I need to report this trust?
• How do I transfer assets?
• What protection will I gain?

Need expert support? Learn about our trust formation services or book a session right now using our live chat.

FAQs About Offshore Trust Costs

Still have questions about offshore trust pricing? You’re not alone. Here are the answers to some of the most common questions.