Q: What should I consider before accepting appointment as a trustee?

A: An individual’s decision to accept appointment as a trustee is often the result of an emotional tie of loyalty, kinship or friendship with the trust’s creator. That acceptance, however, imposes an extraordinary responsibility which may last for several years or decades. Individuals undertaking these services soon realize that they also have very concrete, legal duties, not only to the current beneficiaries of the trust, but also to future generations of a family who may not even be born. Their close relationship with the trust’s creator is not a shield against allegations of negligence or impropriety by other parties to the trust with whom they may have no other relationship.

In many cases, trust administration requires more than common sense, and the trustee’s duties to the beneficiaries require a keen consideration for objectivity and loyalty. CSI’s trust administrators are trained, credentialed, supervised and audited to ensure that the multitude of policies and procedures are followed and provide a proper - and defensible - result within the trust’s terms and the standard of care for ethical and prudent administration. There’s a lot of gray area there, and the consequences of a breach of trust - even inadvertently - can be a financial nightmare for an individual trustee just doing their best.

Q: What are the responsibilities of a trustee?

A: Trustee responsibilities may include:

• Safeguarding and distributing assets

• Keeping records

• Managing investments

• Filing and paying taxes

• Maintaining and selling real estate

• Overseeing business interests

• Managing liquidity needs

• Gathering and preserving artwork, jewelry and other collectibles

• Resolving beneficiary disputes

• Defending and pursuing legal claims

• Paying expenses

• Communicating with CPAs, attorneys, insurance agents and other professionals

• Accounting to beneficiaries

Q: What are the qualities and skills to look for in a trustee?

A: The qualities and skills to for in a trustee include:

• Willingness

• Competence

• Objectivity

• Financial experience

• Discretion

• Patience and attention to detail

• Longevity

• Conflict resolution

• Open communication

Q: What are CSI Trust Company fees?

INCEPTION FEE:

• CSI Trust Company reserves the right to collect an inception fee of $3,000 on the date of acceptance as the fiduciary.

ANNUAL FEE:

• Currently, CSI Trust Company does not charge an annual fee. However, CSI Trust Company does charge a blended hourly fee for fiduciary services rendered, which is described below*:

• Executive Director $450

• Trust Operations Manager or Staff Accountant $400

• Trust Officer $290

• Trust Specialist $250

• Trust Accountant $250

• Trust Bookkeeper $250

TERMINATION FEE:

Currently, CSI Trust Company does not charge a termination fee.

SPECIAL SERVICES FEE:

In the event the administration requires extraordinary services, those services and associated fees will be described and provided in a separate fee schedule. These fees are to be charged monthly or upon completion of the extraordinary services.

PROFESSIONAL SERVICES FEE:

If the administration necessitates engaging professionals, (e.g., lawyers, CPA, or accountants, real estate agents, investment advisors, etc.), the fees for those professionals will be charged to the appropriate case.

*CSI Trust Company’s fees may be subject to period change. Fees may also include charges for administrative, technology, regulatory and compliance fees. CSI’s new fees schedule will become effective July 1, 2024.