Another level of service that SDTC can provide, and which is agreed to in a separate agreement from the service options, relates to the administration of the family’s trusts. Pursuant to this agreement, which is known as a Trust Administration Services Agreement, the PFTC may appoint SDTC to serve as its trust administration agent.
As the trust administration agent, SDTC will designate a trust officer to provide trust administration services for the family’s trusts, as an agent of the PFTC. The trust officer will serve as an officer of the PFTC. The trust officer will maintain the trust account file, coordinate correspondence, execute trust related documents on behalf of the trust at the direction of the PFTC, and perform the required annual administrative trust account review.
Trust administration services include the following:
- Provide trust administration services to trusts including, but not limited to, collecting income, providing deposit, wire, and ACH services, paying trust expenses, making distributions to beneficiaries as directed, processing notes and tax payments, processing transactions related to alternative investments, and updating asset valuations
- Facilitate relationships with asset managers and custodians
- Assist in responding to inquiries from the grantor, any trustees, beneficiaries, and third parties concerning trusts
- If necessary, assist with the annual trust reviews, primarily with the completion of the annual administrative trust review
- Filing and maintenance of trust files, including vault files for safekeeping of copies and originals of important documents
- Procure trust tax identification numbers from the IRS
- Coordinate signatures as needed and facilitate filing and exchange of trust related documents
- Execute documents with respect to trust account transactions
- Assistance and guidance with obtaining Know Your Client (KYC) documentation
- Assist with federal and state tax filings, including coordinating with CPAs, completing 1041s, filing federal tax filings, including estimates, and filing state tax filings
- Assist in opening new trust accounts
Trust administration agent services are charged on a per-trust basis, subject to the terms of a final Trust Administration Services Agreement. Fees for serving as the PFTC’s agent for trust administration typically include a one-time set-up fee (per trust), a minimum annual fee (per trust), a fee for extra assets or notes (per asset/note), and additional fees for assistance in filing, facilitating, and making tax payments. Please note SDTC cannot provide tax preparation, estate planning, or legal advice.
Fees are subject to the receipt of additional information concerning the trusts, including, but not limited to, the trust instrument, description of the trust assets, number of trust assets, tax status of the trust, nature in which assets are held in trust, and transaction activity. Once SDTC has an opportunity to review the above information, it can then provide a more accurate fee schedule.