When a trust is funded with money belonging to someone other than the Beneficiary, we call this type of trust a Third-Party And Testamentary trust. These trusts are different than the trusts used to protect money from personal injury settlements, back SSI payments, and other assets belonging to the Beneficiary. Typically, these trusts are funded by parents or grandparents of the Beneficiary through wills, estates, and life insurance proceeds. These trusts can be funded during the Donor's lifetime or after the Donor's passing.
Our current fee structure for our Third-Party And Testamentary trust is as follows:
A. Enrollment Fee:
There is a one-time only Enrollment fee of $950. This fee is charged at the time that the trust is established. There are no additional fees until the trust is funded. That means if you establish a trust for your child or grandchild today, you will pay $950 now, but will not pay the annual "renewal fee" that some other trusts charge. There will be no fees whatsoever until the trust is funded.
B. Trustee Fee/Consultation Fee:
Once the trust is funded, the trust will be charged a 1.5% annual Trustee Fee by special Needs Integrity and will be subject to a 1.5% annual consulting fee, which may be waived under some circumstances.
Trusts funded with over $250,000 will be eligible for fee reduction, which will be negotiated at the time of Enrollment and is based upon several factors, including the Donor's goals for the use and longevity of the trust, the amount of activity expected by the Trustee and Consultant, and the Beneficiary's expected quality of life and living conditions.
C. Tax Preparation Fee:
Third-Party And Testamentary Trusts are their own separate tax-paying entities and must file Form 1041 and appurtenant state form. There may be a nominal charge for the preparation of these forms by a tax professional.
