How much do corporate trustees charge?

Most corporate trustees charge depending on the level, size, and nature of specific services required for managing a given trust. In essence, corporate trustee fees can include initiation fees, annual administrative charges, and any additional service for specialized duties like investment management or even consultation with an attorney.

Common Corporate Trustee Fees:

• Setup Fees: Corporate trustees may charge a one-time setup fee when establishing a trust. This fee can range from a few hundred to several thousand dollars, depending on the trust’s complexity and the jurisdiction involved.
• Annual Management Fees: These fees cover ongoing trust administration, including asset management, record-keeping, and regulatory compliance. Annual fees are usually calculated as a percentage of the trust's total assets, typically ranging from 0.5% to 2%.
• Transaction Fees: Trusts with frequent transactions or asset transfers may incur additional charges. These can include asset sales, property management, or significant financial distributions.
• Specialized Services Fees: Services like tax preparation, investment management, and legal consultations may come with extra charges. Some trustees offer bundled services, while others charge separately based on the service type and complexity.
• Termination Fees: If the trust is dissolved or transferred, corporate trustees might apply a termination fee to cover administrative closure costs.

Factors Affecting Costs:

• Trust Size and Value: Larger trusts typically incur lower percentage fees due to economies of scale.
• Complexity of Services: Trusts with complex asset portfolios or international components often result in higher fees.
• Trustee Reputation: Established trust companies with extensive expertise may charge premium rates due to their professional track record.

Choosing a corporate trustee involves balancing cost against service quality, expertise, and trust security. It’s essential to review fee structures carefully and understand what services are included.

For comprehensive trust management with transparent fees and expert guidance, consider One Pacific Trust.