Our Fees

First Covenant is committed to providing service that is excellent as well as cost-effective. Our fees for personal trust services and estate administration are set forth in the tables below. You may also download our fee schedules in .pdf format. Fees are based on market value of assets in trust. Estate fees are based on the date of death value of estate assets as determined for tax purposes. Family wealth is aggregated for purposes of the declining rate schedule. Accounts of $15,000,000 or more are priced on a case-by-case basis. We have individualized pricing structures for non-traditional investments. Contact us for more information.

It is First Covenant’s design that these fees be all-inclusive. We do not charge termination fees, accounting fees or for miscellaneous expenses; however, while our fees are designed to be all-inclusive, additional charges may be assessed for non-standard services. Additional charges will be assessed 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/business management/sales, tax controversies, and litigation. In addition, as an independent trust company, we have chosen not to take an active role in investing assets which allows us to cooperate with your Financial Advisor to oversee that your assets are properly invested. Similarly, First Covenant does not prepare tax returns, but works with your tax professional to coordinate all necessary tax compliance. Therefore, investment management costs and tax preparation expenses are in addition to the fees charged by First Covenant.

Trust documents may be drafted with provisions allowing certain people or committees other than the trustee (usually called Trust Advisors, Trust Directors or Trust Committees) to direct the trustee in certain areas, such as how to handle and invest the assets of the trust, or how and when to distribute assets from the trust. The trustee is bound by the trust document to carry out the directions given to it by the Director. Being subject to such a Trust Director or Trust Committee reduces the administrative burden on 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 (see SDCL § 55-1B-2 and TCA §§ 35-3-122 & 35-15-808) we are able to provide services at a reduced cost to the trust. For trusts that are directed with respect to investment decisions, the “Investment Directed Trust Administration” fee schedule below applies. For trusts that are directed with respect to distributions, a discount of 0.05% will be applied to our standard fee schedule. For trusts that are both investment and distribution directed, a discount of 0.05% will be applied to the investment directed fee schedule.

 

Trust Administration Fees

0.85% on the first $1,000,000
0.75% on the next $1,500,000
0.65% on the next $2,500,000
0.55% on the excess
$3,000 minimum fee

 

Investment Directed Trust Administration Fees

0.65% on the first $1,000,000
0.60% on the next $1,500,000
0.55% on the next $2,500,000
0.50% on the excess
$3,000 minimum fee

 

Estate Administration Fees

2.25% on the first $1,000,000
1.25% on the next $1,000,000
0.95% on the excess
$4,500 minimum fee

 

Irrevocable Life Insurance Trust (ILIT) Fees

$1,500 Annual maintenance fee
$900 One-time set-up fee
$500 Fee for each substitution of policy or additional policy

 

Planning & Consulting Services

It is First Covenant’s design that these fees be all-inclusive. We do not charge termination fees, accounting fees or for miscellaneous expenses; however, while our fees are designed to be all-inclusive, additional charges may be assessed for non-standard services.

Additional charges will be based on specific agreement, specific specialized fee schedules, or on the hourly rates of appropriate personnel, which vary from time to time. Non-standard service staffing will be at First Covenant’s discretion, and will depend on the responsibilities involved, as well as the size, importance, difficulty or novelty of the services. Such non-standard services include (but are not necessarily limited to) real estate management, business management, sales of business interests or real estate, tax controversies, and litigation. Furthermore, First Covenant Trust and Advisors may charge hourly for planning and consulting work performed beyond the scope of the original engagement.