Our Fees

First Covenant is committed to providing service that is excellent as well as cost-effective. Trust fees are generally based on market value of assets in the account, with a $3,000 minimum annual fee. Estate fees are based on the date of death value of estate assets, with a $4,500 minimum fee. Irrevocable Life Insurance Trusts (ILITs) with a single policy and annual premium due, are charged a flat $1,500 annual fee, with a one-time $900 set-up fee. We are also available for hourly consultation, planning and other services where standard rate-schedules don’t apply. Contact us to discuss the particulars of your situation and a no-obligation estimate.

Flexibility

The round peg doesn’t always fit in the square hole. Our fee schedules are highly competitive. However we understand that some situations or assets don’t fall nicely into a standard pricing structure. When that happens, we remain flexible in evaluating fees on a case-by-case basis to ensure that the fees make sense. If you have a scenario where a standard fee isn’t the best fit, contact us to discuss “outside the box” options.

Fee Grouping

Our fees generally decline as a fraction of the account size as accounts hit certain thresholds. Related accounts are typically grouped together for purposes of calculating our fee so that a family’s overall fees are reduced. Contact us for specifics on how this relates to your situation.

Directed Trusts

South Dakota, Tennessee and several other states allow for trusts that to have certain people, entities, or committees other than the trustee (usually called Trust Advisors, Trust Directors or Trust Committees) to direct the trustee in certain areas. For example, how to handle and invest the assets of the trust, or how and when to distribute assets from the trust. These Directed Trust documents instruct the trustee to carry out the directions given to it by the Director. This reduces the challenges faced by the trustee, as it is no longer forced to make what can often be tough decisions for the trust with respect to investments or distributions.

Because of the reduced burden on First Covenant when it administers a trust that is directed, and because of reduced liability we are able to provide services at a reduced cost to the trust. To discuss when Directed Trusts work well, and the reduced fees applicable to directed trusts, please contact us.

Inclusive

It is First Covenant’s design that these fees be all-inclusive. However, additional charges may be assessed for non-standard services in a manner commensurate with the time, effort, expense and responsibilities involved, or the size, importance, difficulty or novelty of the services, but will not exceed $250 per hour. Such non-standard services include (but are not necessarily limited to) real estate management or sales, business management, tax controversies and litigation.

Special Fee-Related Testimonial

“Professional and well worth the money.” – High Net Worth Client

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[1] See SDCL § 55-1B-2 and TCA §§ 35-3-122 & 35-15-808