What Would a Bank Trustee Charge for a Simple Trust with Quarterly Distributions?
What would be the typical cost of a bank administering a trust set up with quarterly distributions and could last 10 years?
It depends largely on the amount you will have in the trust. A recent survey of larger banks and trust companies had a big range of charges of between 0.60% and 1.0% annually on the first $1 million of assets. Most also have a minimum annual charge ranging from $100 to $8,000. Clearly the bank with the highest minimum charge is looking for larger trusts to administer, and most of the minimum fees are in the $3,000 range. One thing that’s not clear from this survey is whether the fees also include investment costs, or simply the cost of administering the trust, with an additional charge for investment management. But I’d assume for your purposes that there would be a minimum fee of $3,000 and a higher fee if the trust amount exceeds $500,000.