Accredited Wealth Management Advisor 2025 – 400 Free Practice Questions to Pass the Exam

The statement regarding foreign situs trusts being often costly to establish and maintain is correct due to several factors inherent in the nature of these trusts. Establishing a foreign trust typically involves navigating complex legal and regulatory requirements that vary significantly from one jurisdiction to another. These complexities result in potential legal fees, accounting costs, and ongoing administrative expenses, which can drive up the overall costs related to both the setup and maintenance of the trust.

In addition, foreign situs trusts may require professional management and specialized expertise to handle compliance with the various laws applicable in the foreign jurisdiction, further adding to the financial burden. Trust owners must also consider potential tax implications, which may involve additional accounting and legal services.

All of these aspects contribute to the understanding that foreign situs trusts are generally more expensive to establish and maintain than domestic trusts, making this statement accurate.