Breaking the Barriers of Trust Accessability
Small Trusts – those ranging from $500,000 to $25 – face the challenge of traditionally high minimum trustee fees; that is until Kiss Trust’s innovative small trust service. As a new innovator in trustee services, Eastern Point Trust has removed the barrier of high fees, empowering small trusts to be created or remain in place protecting the assets under the terms and conditions the grantor originally intended.
Most traditional trust companies have a minimum trust size and minimum trustee fees designed to accommodate only high net worth clients with multimillion dollar trusts. These minimum Trustee fees typically range from $4,000 to $5,000 annually. By comparison, Eastern Point Trust Company has an annual fee of only $50. While these high minimum fees are very profitable for the traditional trust company, this “old-world” business model prevents the vast majority of Americans from utilizing trusts, which can be a cost effective financial planning tool.
By leveraging its patented trust technology Eastern Point Trust Company provides a new, cost effective solution for small trusts. Let’s take a look at just a couple of examples.
Mary is a grandmother whose has an estate of cash and real estate which is valued under $100,000. She would like to leave these assets to her two grandchildren to fund their education. Even if she could find a traditional bank trust company to serve as Trustee, they would charge her over $4,000 per year or over 4%.
Solution: With EPTC's Kiss Trust she can create the trust for only $49 and her maximum annual trustee cost would only be ½%. Additionally, while alive Mary can use the Sleeping Trust option of Kiss Trust to create the trust and operate with no annual fees.
Tom created through his will a testamentary trust with over $750,000 and appointed in the will his traditional bank trust company as trustee. Tom had concerns his heirs would foolishly spend the estate and wanted the trust to exercise long term control over how the assets of the trust would be used. Within 3 years the value of trust fell to under $375,000 and the beneficiaries petitioned the court to terminate the trust due to the Trustees high minimum trustee fees. Their state's uneconomic trust provisions allowed the court to terminate the trust and payout the assets contrary to Tom's wishes solely because of the trustees high fees. As such, the small trust termination caused Tom's worst fears to be realized; as his heirs had no restrictions on the use of the assets and foolishly frittered them away.
Solution 1: Tom, could have utilized Kiss Trust to initially create the trust and not only paid lower fees while the trust was over $500,000, but also once below $500,000 the trust would have been exempt from attempts by the beneficiaries to terminate the trust as uneconomic.
Solution 2: Even if the trust has already been established, any trust can be “Decanted” or transferred using Kiss Trust which would result in lower fees, and most importantly preserved Tom's intentions as the grantor.
Starting Has Never Been Easier
Whether, creating a new trust that has modest assets (as little as $25), decanting a larger trust, or avoiding the termination of a small trust, the Kiss Trust small trust service provides the only cost effective method to economically extend the life of a trust, regardless of size.
Visit our website or contact an Eastern Point Trust Company senior trust officer to discuss how our services can solve your small trust needs and simply reduce your small trust’s current trustee fees.