Charitable Trust Administration
Types of Charitable Trusts We Administer:
- Charitable Remainder Trusts (CRTs)
- Charitable Lead Trusts (CLTs)
- Private Foundations
Areas of Service
SFT provides these services to Charitable Trusts throughout the U.S.
Charitable Trust Planning and Design Services
Santa Fe Trust offers its expertise at each step of the Charitable Trust design, presentation, implementation and administration process. We
address our trust client’s needs by assisting their financial and legal advisors in designing the optimal type of Charitable Trust, payout
rate, trust term and other elective design features by preparing customized cash flow models and charitable deduction calculations. SFT
provides checklists including issues to consider and facts to gather when funding Charitable Trusts with complex assets like real estate
or closely held stock and works with our trust client’s legal counsel to properly fund the trust with such assets. We facilitate positive
relationship building among all professional advisors who participate in the trust design and implementation process.
Draft Document Reviews
Trust clients who are considering appointing Santa Fe Trust as a current or successor trustee, co-trustee or administrative agent of
Charitable Trusts are encouraged to introduce us to the attorneys drafting the trust documents before these documents are finalized. If
the trust is existing, the trust documents must be reviewed by SFT to determine transferability of the trust. By doing so, SFT can ensure
that the language found in the trust document will enable us to properly and efficiently administer the trust when our duties commence.
Disclaimer: SFT engages in this activity for internal risk management purposes only. Any comments or suggestions SFT makes to counsel
are not to be considered legal opinions of any kind and may not be relied upon by any party for any purpose. Attorneys who are drafting
any documents SFT reviews must exercise their own independent legal judgment in accepting or rejecting any recommendations made. Santa Fe
Trust does not draft legal documents, provide legal advice of any kind, or guarantee or endorse the work of any attorney in any fashion
or for any purpose.
Administration of Charitable Trusts
Santa Fe Trust has full trust powers and can serve as a sole corporate trustee, co-trustee, directed trustee, independent special trustee
or as a primary trustee’s administrative agent.
As a corporate fiduciary, Santa Fe Trust provides back office administrative support for grantor-trusteed CRTs and CLTs, insulates the
grantor from fiduciary liability, carries E&O insurance coverage, makes all trust distributions to beneficiaries via check, wire or ACH, pays
all trust bills, keeps financial advisors posted concerning upcoming cash needs and communicates with beneficiaries whenever necessary. We
provide all required trust accounting for Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs), and private foundations (whether
organized in trust or not-for-profit corporate form). We also interface with asset custodians to obtain current custodial account
transactions information and prepare and send periodic statements of account as required by the trust document. SFT annually recalculates
the unitrust amount for standard and net income CRUTs and advises the income recipient by letter and sees to the preparation of state and
federal tax returns, provides income tax charitable deduction calculations and cash flow analysis for additional contributions to CRTs and
makes any required filings with state regulators.
In addition, SFT oversees the investment activities of the financial advisors who invest SFT trust assets and reviews their performance
at least annually, values or causes to be valued any “hard to value” trust assets, as needed, hires and oversees the property managers of
trusts holding real estate that passes our due diligence review and administers “income deferral” NIMCRUTs invested in suitable deferred
annuities, if accommodated by the trust document.
Costs associated with these services
There is generally no charge for our preliminary planning, consulting, and document reviewing services, provided SFTs administrative
services are being recommended to the trust clients.
SFT charges a fee for initial account set up, tax return preparation and extraordinary services. Our account administration fees
are based on the greater of a percentage of the value of the trust’s assets or our minimum fee per account, charged monthly in
advance. We do not charge an account termination fee.
Please call for the current fee schedule and a personalized fee quote.