FAQs

A professional trustee is an individual or company appointed and compensated to manage and administer trusts on behalf of individuals or families. Professional trustees have expertise in trust administration, legal compliance, and financial management. A trustee holds legal title to the property in trust for the benefit of the ultimate recipient.

A Trust Agreement is a contract formally expressing the understanding between the grantor and trustee. It typically contains instructions on how the trust property should be held and invested, the purposes for which its benefits are used, and the duration of the trust.

Northwest Trustee & Management Services charges a fee based upon assets held in the trust and an hourly fee proportional to the amount of work performed on each account.  There is no costs for an initial consultation. 

• We have different fee schedules for different trusts. We would be happy to provide a fee schedule specific to your needs once we understand the situation and our role.
• It has been our experience that, when compared to the size of the estate and considering the peace of mind of a thorough estate plan, trust management fees are modest.
• Fees are tax deductible and half is taken from the principal and half from the income.
• With professional management, better investments and tax planning usually far offset any fee.
• Keep in mind that at the inception of the trust, you will need an attorney to write the document. He or she will charge you directly.
• Additionally, when Northwest Trustee & Management Services receives assets for investment, there will be an investment fee. The fee is paid out of the trust. Our trustee fees are not related to purchases and sales from the trust.

• Northwest Trustee & Management Services strives for a return that will meet the goals of the trust. Return is a function of risk. The investment objectives of most trusts do not allow for wide fluctuation of principal value; because of this, the investments are relatively conservative.
• Return combines two elements: income and growth. Most of our trusts are invested so as to provide increasing income over the years; therefore, the trust is concerned with the growth of principal as well as the rate of income return.

Before trust assets are invested, Northwest Trustee & Management Services, as trustee, takes several important steps. First, we hold discussions with the person creating the trust or the guardian of that person to determine what kind of annual income needs he or she may have. We ascertain immediate cash needs for items such as medical expenses, schooling, auto, travel, etc. Finally, we estimate the length of the trust term.

After a thorough discussion, written investment objectives will be established. These will include:

• Stability and safety of principal.
• The income percentage goal.
• The growth percentage goal.
• The cash reserve.
• The duration of the trust.
• An asset allocation model.

We will retain the client’s advisors. However, if needed, we will hire an investment advisor who will make an investment recommendation based on these goals. We make an independent analysis of all securities or mutual funds to be purc

• With a standard revocable living trust there are no tax benefits. However, with larger estates, a married couple may achieve significant Federal Estate Tax savings with proper trust planning.
• The primary reason for establishing a living trust is for management purposes: to protect against incapacity, or to provide for minors or heirs with physical disabilities.
• A major reason for a living trust is that eventually the assets will avoid the costs and delays of probate. A trust is also more confidential than a will.
• The type of trust that provides income to the family first, and later distributes to a charitable organization, offers many significant tax benefits.

• Washington State Trust Laws require that the trustee report at least annually to the trust beneficiaries. Our accounting cycle is usually semi-annual, but accountings may be provided more often if desired.
• The semi-annual accounting includes an income and expense statement as well as a balance sheet. Estimated rates of return are shown for each asset.
• The trust beneficiary (or authorized representative) may review all trust files at any time.

Trusts managed by professional trustees are supervised and reviewed by internal and external auditors from regulatory authorities and audit firms. Northwest Trustee & Management Services is institutionally objective, impartial and has a duty of loyalty solely to trust beneficiaries.

When your attorney is naming us in your documents, please use our legal name: Northwest Trustee & Management Services, LLC