Deseret Trust Company will provide custody of the assets held as trustee. This can reduce expenses but, more importantly, it keeps all the assets in one place, making it easier to administer the trust and to account for the assets.
Collection of Funds
Assets held at Deseret Trust Company provide for immediate credit of dividends and interest when they are payable. Checks are deposited quickly so that funds are immediately available to earn interest.
Distributions and Payments
Deseret Trust Company will handle the required distributions from charitable trusts after making the appropriate calculations called for in the trust document. If there are other payments required by the trust, or that are for the convenience of the beneficiary, we are able to handle those as well.
The tax staff at Deseret Trust Company is very experienced and knowledgeable regarding the necessary tax reporting for charitable trusts. We prepare and file the necessary tax returns as part of our fee–no need for individual trustees to hire a tax preparer at their own expense.
Accounting and Reporting
Deseret Trust Company has invested in the necessary technology to provide proper accounting for assets held in trust and to provide required reporting to beneficiaries and regulators.
Donors may have unique assets in trusts where Deseret Trust Company does not want to act as trustee, or they may want to use their current financial advisor to invest the funds. Deseret Trust Company recognizes the various relationships our donors have with other professionals, and we do not desire to interfere with those relationships.
As an ancillary trustee, Deseret Trust Company can provide assistance with taxes, distribution compliance, or some specific trust functions while allowing the donor flexibility in administering other aspects of the trust. Through our Ancillary Trustee Agreement, the donor can designate which services Deseret Trust Company will provide and which the donor will manage. The agreement also specifies the fee that will be charged for the various duties that are assigned to Deseret Trust Company. This arrangement can be changed at any time by giving Deseret Trust Company additional duties or removing some previously assigned to Deseret Trust Company.
Here is an example of how the ancillary trustee relationship is working with one of our donors. Our donor lives in Seattle, Washington, and has funded a CRUT with six rental units. He is his own trustee. The rentals are being sold. But it is taking some time and they are selling one at a time. The donor has some experience with real estate, but not with being a trustee. He wants some help with the trust.
When the first rental unit sold, he approached Deseret Trust Company to see how we could help. After reviewing his options he appointed Deseret Trust Company as ancillary trustee with the duty to file tax returns for the trust and to manage the assets he placed under our control. He has given Deseret Trust Company the proceeds from the first rental, and as each subsequent unit is sold, he will turn over the cash from the sale. When the last unit is sold, he intends to resign as trustee and have Deseret Trust Company act as sole trustee.
In this situation we are partnering with the donor to allow him to do what he does well and to allow us to do what we do well.
Some donors have a long-standing and close relationship with a financial advisor and want to continue that relationship with a charitable trust. Deseret Trust Company will negotiate a split of our fee when (1) the financial advisor serves as the relationship manager for the trust, (2) this arrangement is agreed to by the donor, and (3) the advisor provides the negotiated services.
One of our donors lives in St. George, Utah, and has a long-standing relationship with a financial planner. The donor wanted to fund a CRUT with appreciated assets but also wanted to continue working with the financial advisor on these assets as well as other assets. Deseret Trust Company negotiated an agreement with the advisor in which we pay him a portion of our fee each year to compensate him for his services as a relationship manager to the donor. Statements are sent to the advisor, who has the direct relationship with the donor. As long as the donor desires to maintain the relationship with this advisor and the advisor continues to provide an advisory service on behalf of Deseret Trust Company, we will share a portion of our fees with the advisor.
Gift Annuity: Reinsurance
Where appropriate, Deseret Trust Company will consider purchasing a commercial annuity product to reinsure the required annuity payments of a gift annuity. Purchasing a single premium annuity for the amount of the annuity payment and term of the gift annuity does this. The remainder of the gift is then invested for the benefit of the charitable remainder beneficiary. It is important that the reinsurance be appropriate and that multiple policies and companies be considered prior to the purchase of the commercial annuity.
For daytime account assistance call 1-800-746-8250 or email:
For assistance in using these tools in your financial or estate planning, please call 877-650-5377.