Fee Schedule--Revocable Living Trusts
Trustee Fee
All trust documents where Covenant Trust Company® serves as trustee contain language similar to the following which states that Covenant Trust Company is entitled to “reasonable compensation for services in administering and distributing the trust property, and to reimbursement for expenses.” The role of trustee carries greater risk and responsibility than that of agent.
Covenant Trust Company requires that the greater of $15,000 or 25% of the residue remaining in any revocable living trust after the death of the last surviving income beneficiary, be designated in the trust document for one or more Covenant ministries of the grantor’s choice. When that requirement is met, Covenant Trust Company does not normally charge a trustee fee during the grantor’s lifetime.
Covenant Trust Company reserves the right to charge a trustee fee [based on market value of assets] in the following situations:
- trusts with grantors under age 60
- trusts holding non-liquid assets
- trusts with unusual situations requiring high levels of management and/or administration
Revocation Fee
It is the current policy of Covenant Trust Company to charge a fee in situations where Covenant Trust Company is acting as trustee in the event of:
- the revocation of a revocable living trust
- the removal of Covenant Trust Company as trustee
- the amendment of a revocable living trust which results in the trust no longer meeting Covenant Trust Company's criteria for serving as trustee without fee
The date of such revocation or amendment shall be known as the 'change date.' A fee based on the fair market value of the trust assets (not reduced by trust liabilities), calculated quarterly from the date of the trust agreement through the change date, will be charged. Any calendar quarter in which Covenant Trust Company charged a trustee fee will not be included in this calculation.
Whenever a trustee fee or revocation fee is charged, Covenant Trust Company shall calculate that fee according to the following schedule. Fees will be calculated on the market value of the assets.
- All trustee fees will be billed quarterly.
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FEE SCHEDULE
REVOCABLE LIVING TRUSTS
[effective September 15, 2009]
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| First $300,000 |
| 1 percent per year |
| Next $700,000 |
| 8 tenths of 1 percent per year |
| Over $1,000,000 |
| 5½ tenths of 1 percent per year |
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Trustee fees will be charged only for the period where Covenant Trust Company served as trustee.
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The president of Covenant Trust Company may waive any trustee fee on a Revocable Living Trust. The President of Covenant Trust Company and/or the Administration Committee are authorized to waive the revocation fee on a Revocable Living Trust.
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Covenant Trust Company reserves the right to change stated fee schedule at any time.
Termination Fee
It is the current policy of Covenant Trust Company to charge a fee at distribution when 100% of the trust remainder beneficiaries are charitable organizations. The fee will be 15% of the total distribution.
Read our complete brochure on Revocable Living Trusts.