Estate Settlement Trusts
Areas of Service
SFT provides these services conditionally for Estate Settlement Trusts throughout the U.S.
How It Works
An Estate Settlement Trust is a living trust that has been funded with essentially all of the property of the deceased trust client
and has become irrevocable by virtue of the decedent’s death. These trusts must go through a period of estate administration. However, the
process is a private one that bypasses probate and supervision by the probate court. The trust document designates a successor
trustee to succeed the deceased trust client as trustee. The designated successor trustee will have the option of accepting or
refusing the office. If accepted, the designated successor will become responsible for the following estate-related administrative
duties, among others: (1) locating and taking custody and inventory of all trust assets; (2) determining the value and cost basis
of all trust assets; (3) paying all lawful claims of creditors, including paying the bills of the deceased; (4) liquidating, segregating
and/or distributing trust assets in accordance with the trust document; (5) securing copies of the death certificate; (6) preparing
and filing income tax, federal estate tax and any state death tax returns; (7) keeping accurate records; and (8) giving all required
notices to creditors and beneficiaries in a timely manner. After the estate is settled, if the trust continues in existence, the
successor trustee typically continues to serve until the trust reaches its term or the trustee resigns, is removed or replaced.
Under certain conditions, Santa Fe Trust accepts an appointment as the successor trustee of an Estate Settlement Trust.
Service Limitations
Santa Fe Trust reserves the right to decline to serve with or without cause, as the successor trustee of an Estate Settlement
Trust. Every attempt will be made to accept such appointments; however, situations in which a declination may be made include
the existence of problematic trust assets: e.g. contaminated real estate, the existence of trust document provisions or applicable
laws that Santa Fe Trust is unable or unwilling to administer or a trust size that is too small to be administered economically.
Costs associated with these services
During the period of estate administration SFT charges a minimal fee for initial account set up and a minimum asset-based fee
for the type of trust to be administrated. With Estate Settlement Trusts an hourly rate is assessed for performing estate settlement
related duties and functions that go beyond standard living trust administrative services. After the decedent's estate is settled, we
revert to charging our standard asset-based fees for the type of trust to be administered.
Please call for the current fee schedule and a personalized fee quote.