FAQs and resources.
Find answers and learn more about Schwab Personal Trust Services.
Frequently asked questions.
A trust is a legal relationship in which one or more persons or entities (trustees) holds legal title to property and manages it for the benefit of one or more persons or entities (beneficiaries).
Please note you must work with an estate planning attorney to draft and create your trust. Schwab can assist with administering your trust once it has been created but does not establish trusts on your behalf.
A trust can potentially accomplish a wide variety of objectives:
- Provides continuity in management of trust assets in the event of your incapacity or death.
- Helps your beneficiaries minimize the expense, delay, and publicity of probate.
- Allows you to create rules for how your assets will be preserved or distributed and to name a trustee to carry out your wishes.
- May minimize transfer/estate taxes using gifting strategies during your lifetime.
- Allows for the implementation of charitable giving strategies.
Please note that trusts are legal documents; you must work with an estate planning attorney to draft and create your trust. Schwab can assist with administering your trust once it has been created but does not establish trusts on your behalf.
There are many types of trusts, depending on you and your family's unique needs. Your attorney or estate planner can help you determine which type of trust is the best choice for you. The types of trusts supported by Schwab Personal Trust Services include:
Family transfer/Irrevocable trusts
- Marital and family/Credit shelter trusts
- Qualified terminable interest property (QTIP) trusts
- Generation-skipping trusts (GST)
- Testamentary trusts (trusts created under your will)
- Qualified domestic trusts (QDOT)
Wealth protection and transfer
- Living trusts (Revocable trusts)
- Irrevocable life insurance trusts (ILIT)
- Spousal lifetime access trusts (SLAT)
- Grantor retained trusts (GRAT, GRIT, GRUT)
- Intentionally defective grantor trusts (IDGT)
Charitable giving
- Charitable remainder trusts (CRAT, CRUT)
- Charitable lead trusts (CLAT, CLUT)
Depending on your situation and trust administration requirements, Charles Schwab Trust Company (CSTC) can serve in a variety of capacities:
Full corporate trustee. CSTC is responsible for the trust administration, fiduciary tax preparation, and investment management of the trust.
Administrative trustee. CSTC manages the day-to-day duties, distributions, and tax filings for the trust. The client may appoint an investment fiduciary to manage the trust investments.
Successor trustee. CSTC may assume responsibility for the trust in the event the current trustee (typically the Grantor) is unable to serve and has named CSTC as successor trustee in their trust. At that point, CSTC reviews the trust agreement and trust assets to evaluate whether CSTC will accept the appointment to serve as successor trustee. If CSTC accepts the appointment, CSTC will become the corporate trustee.
Charles Schwab Trust Company provides comprehensive trust administration and investment management services. A dedicated team of Trust Officers and Investment Officers is assigned specifically to your trust, ensuring consistent oversight and personalized service. This team also serves as a point of contact for your beneficiaries, while your Financial Consultant continues to support your brokerage accounts.
Trust Administration Services
- Income and principal distributions in accordance with the trust document
- Preparation and filing of federal and state fiduciary tax returns
- Accurate accounting, record keeping, and timely reporting
Investment Management Services
- Professional investment management of your trust assets, including portfolio adjustment to meet changing market demands
- Flexible investment options—including the ability to allow a named investment fiduciary to manage the trust assets—for clients with $10 million or more in assets at Schwab
You'll have access to a variety of flexible investment options depending on the complexity of the trust:
Schwab Personal Trust Services™ (SPTS)
For clients who choose Schwab Personal Trust Services, the trust assets can be invested in proprietary, cost-effective ETF models designed to meet the needs of beneficiaries.
Schwab Wealth Trust Services™ (SWTS)
For clients with $10M or more assets at Schwab who have more complex investment needs, Schwab Wealth Trust Services offers access to a broader menu of active Schwab investment management solutions, as well as an option where Charles Schwab Trust Company (CSTC) provides trust administration only and the client appoints an investment fiduciary to manage the trust investments.
View the Schwab Personal Trust Services™ fee schedule and information.
For clients with more complex or unique trust needs and $10 million plus in assets held at Schwab, Charles Schwab Trust Company offers Schwab Wealth Trust Services™ (SWTS). View the SWTS fees and information.
Charles Schwab Trust Company may accept the following types of trust assets:
- Cash
- Marketable securities
- Life insurance policies
- Annuities
- Residential real estate (owner occupied, vacation, or rental properties 1–4 units)
- Promissory notes
All cash and marketable securities will be held in custody at Schwab, if they are not already, once we begin acting as trustee.
Charles Schwab Trust Company (CSTC) will provide you with the language to appoint CSTC as trustee, but we can't draft or amend your trust. Your estate planning attorney should incorporate CSTC's required provisions. Your attorney should note that CSTC is a Nevada chartered Trust Company. Our provisions state that while CSTC serves as trustee, situs and law governing administration will be Nevada, while governing law for the validity and construction of the trust can remain under the state in which the trust was drafted.
See why Charles Schwab Trust Company administers trusts under Nevada law.
No. Typically clients seek a local fiduciary to handle estate settlement activities.
Depending on your specific goals, you can choose to appoint Charles Schwab Trust Company (CSTC) to serve your trust in one of two ways:
Immediate appointment (now): You can appoint CSTC to serve as your sole trustee or administrative trustee immediately. This allows you to delegate the complex fiduciary, administrative, and investment management tasks to our specialists today.
Future appointment (successor): You can name CSTC as your successor trustee. In this role, we would step in to manage and protect your trust assets only in the future, such as in the event of your incapacity or death.
If you'd like to talk to a personal trust services professional about your needs, we're here to help. You can email us or call 877-862-4304 to learn more.
To help you and your attorney prepare, you can download our Personal Trust Planning Checklist and Standard Trust Provisions.
As part of the process of naming Charles Schwab Trust Company (CSTC) as trustee, we request an opportunity to conduct a review of the draft trust to confirm that the CSTC provisions or any changes thereto are incorporated accordingly, and to ensure that CSTC can execute their fiduciary and legal responsibilities pursuant to the terms of the trust.
Yes. Once we are serving as trustee, Charles Schwab Trust Company (CSTC) may be removed or replaced as successor trustee at any time and for any reason by the party or parties with the authority to do so.
Yes. Charles Schwab Trust Company (CSTC) may accept trust assets outside of Schwab. All cash and marketable securities will be held in custody at Schwab, if they are not already, once we begin acting as trustee.
Nevada offers favorable trust laws, providing potential tax and administrative advantages, even if your trust was established in another state. This includes:
- No Nevada state income tax on trust-retained income and capital gains.*
- Ability for a trustee to administer dynasty trusts, which can last for multiple generations.
- Ability to utilize Nevada asset protection trusts.
- Ability to make certain types of modifications to existing irrevocable trusts without court involvement.
*Based upon the circumstances of the trust, trust income may be taxable by other states. Charles Schwab Trust Company and Charles Schwab & Co., Inc. do not provide legal or tax advice. Consult with your legal counsel and tax advisors about your circumstances.
For clients who wish to engage a Registered Investment Advisor, we invite you to contact Charles Schwab Trust Company of Delaware at 800-745-7721 or CSTCD@schwab.com for questions regarding Schwab's Administrative Trustee Services.
Ready to get started?
If you would like to discuss how Schwab can provide professional trustee services for your personal trust, email us or call 877-862-4304.
