Charitable Remainder Trust Services

Dechomai Foundation, Inc. provides two types of Trustee services:

Liquid Funding

For Trusts larger than $500,000 funded with cash and/or marketable securities, the services are as follows:

All-In Fees:
  • 2% for first $1 million;
  • 1.5% for the next $4 million and
  • 1% on all excess, charged pro-rata quarterly

Includes:  Drafting specimen trust documents, Trustee fiduciary oversight, Administrative/Accounting, K-1 Tax Return Preparation and Filing and Investment Management (Charles Schwab) including all embedded internal investment/transaction and custody fees.

Illiquid Funding

For Trusts funded with unique or hard to liquidate assets such as real estate or privately-held stock (“the Asset”), the Asset must have a cash flow sufficient to service all the expenses during the estimated holding period prior to sale or the donor must provide sufficient liquid funds in addition to the Asset to service those expenses.  The amount of those funds and their payment will be based on a memo of understanding between Dechomai and the donor.

One-Time Liquidation Fee: A one- time liquidation fee is charged to the Trust and paid from the net proceeds of the sale.

This fee is calculated as follows:

  • 3% of the Asset’s value for the first $1 million, plus 2% for the next $4 million plus 1% for all amounts above $5 million. The Asset’s value is calculated based on the greater of the gross consideration received for the Asset or its appraised value. The minimum fee is $10,000. This fee may be adjusted based on the complexity and liability of the asset. This assumes the Asset is sold and Trustee’s entire interest is liquidated within one year from the contribution date.
  • Should the Trustee’s interest in the Asset not be liquidated on or before the one-year anniversary of the donation an additional fee for the holding period after one year will be 0%, prorated monthly. This fee will also be based on the greater of the original appraised value or the gross consideration received for the Asset. The minimum fee is $425 per month.

After the liquidation the services and fees set forth above for Trusts funded with cash and marketable securities would apply.