Under a Trust Administrative Services Agreement, the PFTC appoints SDTC to serve as its trust administration agent. As the trust administration agent, SDTC will designate a trust officer to provide trust administration services to 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 trust account administrative review.
Trust administration services are charged on a per-trust basis, subject to the terms of the Trust Administration Services Agreement. Fees for these services typically include a one-time setup fee per trust, an annual fee per trust, fees for additional assets per trust, and tax preparation fees per trust for preparing tax ledgers and coordinating tax payments with the family’s accountant.
The final fee per trust is subject to change at SDTC’s discretion, and is subject to the receipt of additional information concerning the trusts. The information to be reviewed includes the trust instrument, description of the trust assets, tax status of the trust, nature in which assets are held in trust, and transaction activity. Once SDTC has reviewed this information, it can then provide a more accurate fee schedule. SDTC reserves the right to amend these fees if the facts are significantly different, or if the trust administration requires substantially more time than anticipated. All modifications are subject to a written agreement of the parties.
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
