Personal Trust Services | Charles Schwab
Schwab Personal Trust Services. Professional trust management to help you prepare for tomorrow.
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Charles Schwab Trust Company (CSTC) was established to provide our clients with corporate trustee services, including trust administration and investment management, while enabling our clients to maintain their relationship with Schwab for their brokerage needs.
If you’re interested in appointing CSTC as your trust’s corporate trustee, please follow the steps listed below. If you have any questions, contact CSTC via email at SPTS@schwab.com or by calling 877-862-4304.
The next steps:
- Complete and submit the following form to receive our Personal Trust Planning Checklist, Standard Trust Provisions, and other important information.
- Please review the Personal Trust Planning Checklist to determine what is needed for your unique trust requirements.
- Review important information regarding requirements for CSTC to accept your trust appointment.
Please complete the form. Required fields are marked with an asterisk (*).
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Thank you for contacting Schwab Personal Trust Services.
Documents for your legal team.
Your submission was successful. Using the link, you can now access the requested trustee document to share with your attorney. You will also receive an email confirmation at the email address you provided that contains a link to this same trustee document.
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©2017 Charles Schwab Trust Company. All rights reserved.
Why a corporate trustee?
Working with a corporate trustee like Charles Schwab Trust Company can give you:
- Objectivity. We will administer your trust according to your wishes and in a professional and impartial manner.
- Experience. We have the expertise to carry out all duties associated with serving as your trustee, including the investment of trust assets, administration of your trust in accordance with its terms, professional and timely recordkeeping, and preparation and filing of trust income tax returns.
- Continuity. We can provide seamless, responsive trust administration and trust portfolio management for as long as your trust endures.
We understand that life takes many different turns along the way. We are committed to providing dedicated, ongoing trust administration that upholds your wishes for the future. If you’re ready for a transparent partner to administer and invest your trust, we look forward to working with you.
Types of trustees.
- Sole trustee
CSTC assumes all the investment, administrative, and fiduciary responsibilities of managing your trust according to the terms defined in your trust document.
- Co-trustee
CSTC acts as a co-trustee with the individual(s) you designate. As a co-trustee, CSTC assumes full investment management and administrative responsibilities for the trust but may share discretionary disbursement decision-making with the co-trustee(s) according to the trust provisions.
- Successor trustee
CSTC steps in once you or the individual you name as sole trustee or co-trustee is no longer willing or able to serve.
Types of trusts we support.
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Wealth Protection and Transfer
- Living Trusts (Revocable Trusts)
- Irrevocable Life Insurance Trusts (ILIT)
- Grantor Retained Trusts (GRUT, GRAT, GRIT)
- Special Needs/Supplemental Trusts (SNT)
- Qualified Personal Residence Trusts (QPRT)
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Charitable Giving
- Charitable Remainder Trusts (CRAT, CRUT)
- Charitable Lead Trusts (CLAT, CLUT)
- Foundations
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Family Transfer
- Marital Trusts (“A” Trust)
- Qualified Terminable Interest Property (QTIP) Trusts
- Family Trusts (“B” Trust, Credit Shelter Trusts)
- Generation-Skipping Trusts (GST)
- Testamentary Trusts
- Qualified Domestic Trusts (QDOT)
Advantages of using Nevada’s favorable trust situs include:
- No Nevada state income tax on trust-retained income and capital gains.*
- An extension of the rule against perpetuities allowing your trust to serve several generations without being subject to state and/or generation-skipping tax.
- A firm posture toward creditor protection for beneficiaries.
* Based upon the circumstances of the trust, trust income may be taxable by other states.
You can enjoy the service you’ve come to expect from Charles Schwab while potentially leveraging the advantages of a favorable trust situs, especially with:
- A Financial Consultant assisting with your brokerage accounts.
- A CSTC representative providing trust administration and trust portfolio management.
- An assigned point of contact assisting your beneficiaries.
Our investment management philosophy.
CTSC offers sophisticated yet uncomplicated investment solutions tailored to address and meet our clients’ needs and circumstances. Those who choose us as their corporate trustee enjoy the peace of mind of knowing that the organization they’ve come to trust and rely on will carry out their legacies in a professional and cost-effective manner.
A two-member team, consisting of a trust officer and investment officer, located in Henderson, Nevada, is specifically assigned to your trust. Your Financial Consultant is available to continue to help you with your brokerage accounts.
Estate planning for financial peace of mind.
A trust is just one part of your estate plan. Schwab can assist you with other aspects of protecting your financial legacy as well.
Fee schedule and information as of July 2017.
| Trust Assets | Annual Rate |
|---|---|
| First $5 million | 0.50% |
| Next $5 million | 0.25% |
| Next $15 million | 0.10% |
| Above $25 million | 0.05% |
| Minimum annual fee = $5,000 | |
| Irrevocable life insurance trusts | |
|---|---|
| First policy | $2,500 annually |
| Each additional policy | $500 annually |
| Residential real estate and vacation property* | |
| Each property | $3,000 annually |
Additional fee information.
Trustee and investment management services fees.
Charles Schwab Trust Company (CSTC) charges a fee for administration, investment management, tax return preparation and filing, and other ordinary expenses. Any fees paid to a distribution advisor, trust protector, or other co-trustee come in addition to CSTC’s fees and will be charged as an expense of the trust.
Additional fees and reimbursement expenses.
Fees or expenses for special services provided by CSTC will be charged upon delivery of such services. Examples of additional charges may include, but are not limited to, administrative fees or expenses related to the termination of accounts, dispute resolution, litigation expenses, or loan/note liability processing.
Early termination fee.
The full minimum annual fee may be assessed to any trust that terminates with CSTC fewer than 12 months from inception.
Fees are calculated and charged quarterly. CSTC fees are subject to change upon notice.
At its sole and exclusive discretion, CSTC may decline at any time to serve as trustee on any proposed relationship. All trust documents and assets must be reviewed prior to the acceptance of an appointment as trustee.
The rates set forth above reflect our use of Schwab investment products and services in the management of the trust. CSTC and/or its affiliates benefit from compensation derived from these arrangements and may receive investment management, administrative, brokerage, and other compensation in connection with the trust. Such compensation comes in addition to the rates detailed in this schedule.
Trust FAQs.
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What is a trust?
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).
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Why establish a trust?
A trust can potentially accomplish a wide variety of objectives:
- Provide continuity in management of trust assets in the event of your incapacity or death.
- Help your beneficiaries avoid the expense, delay, and publicity of probate.
- Allow you to create rules for how your assets will be preserved or distributed and to name a trustee to carry out your wishes.
- Minimize transfer/estate taxes.
- Allow for the implementation of charitable giving strategies.
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How do I know what type of trust is right for me?
There are many types of trusts available, depending on your 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; your Financial Consultant can help you establish the trust with CSTC.
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What type of services does CSTC provide?
Administration services
- Income and principal distributions according to the trust document
- Preparation and filing of fiduciary federal and state tax returns
- Accurate and timely accounting, record keeping, and reporting
Investment services
- Professional investment management of your trust assets
- Portfolio adjustment to meet changing market demands
- Education of beneficiaries on investment resources and financial planning
Glossary.
Grantor
The individual (or individuals) who creates and funds the trust with their accumulated wealth, including financial and real estate assets.
Trustee
The party responsible for the administration and/or investment management of trust assets. A trustee can be:
- Individual trustee—usually a family member or friend chosen to manage trust assets.
- Corporate trustee—a bank or trust company, like Charles Schwab Trust Company, that specializes in trust investment management and administration.
- Successor trustee—named to step in and manage the trust when the current trustee is no longer able or willing to continue due to incapacity, death, or resignation.
Probate
This is the court process of distributing assets after death of the grantor. Trusts can help avoid this potentially time-consuming, costly, and public process.
Beneficiary
A recipient of trust asset distributions, such as individual heirs or charities.
We’re here to help with your personal trust.
This presentation is for general informational purposes only and is not intended, nor should it be construed, as tax, investment, or legal advice. Charles Schwab Trust Company does not provide legal or tax advice. Consult with your legal counsel and tax advisor about your particular circumstances.
Charles Schwab & Co., Inc. ("Schwab") is affiliated with Charles Schwab Trust Company (CSTC), the corporate trustee for Schwab Personal Trust Services (SPTS). Schwab may introduce clients to CSTC but does not evaluate whether SPTS is appropriate for each client or recommend SPTS for any particular client. It is the client’s responsibility to ensure that CSTC meets his or her trust needs and to conduct any due diligence that may be required before engaging CSTC.
Schwab and Schwab Private Client Investment Advisory, Inc., a registered investment advisor and affiliate of Schwab, both earn compensation from CSTC for service provided in connection with SPTS. CSTC may invest trust assets in a wrap fee program or make use of investment advisory services, which are sponsored by Schwab and/or in which Schwab affiliates provide discretionary and non-discretionary investment recommendations. Schwab and its affiliates earn compensation for assets selected or recommended by Schwab-affiliated advisors, including management fees for Schwab affiliate mutual funds and shareholder servicing fees for mutual funds that participate in the Schwab Mutual Fund OneSource® service.
Schwab Financial Consultants who introduce you to CSTC will receive compensation if you choose to use SPTS. CSTC receives fees in connection with the administrative trust services or the investment management services as permitted pursuant to the terms of the trust instruments.
In selecting a trust service, you should consider whether to combine trust administrative services with trust investment management services and whom to select as a trustee. Third-parties may offer similar trust administrative or trust investment management services, or both, at different costs.
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