afan asked that I post the trust account fee information I have gathered over the past several months.
To keep the comparisons as close as possible, all of these would have the organization act as the investment advisor. Some (Wells Fargo, Chase as examples) do offer limited trust services at a lower fee. This is when they provide trust administration but not investment advisory services ( a "Directed Trust"). I am not, at the moment, considering that option.
Bank of America/US Trust: 1.25% on first 2 Million, 0.90% on next 3 Million, and 0.60% on next 5 Million.
Bank of America/Merrill Lynch: Anywhere from 0.75%-3.00% on first $500,00 depending on whether the assets are only in mutual funds or more broadly diversified. All of these accounts come with a “financial advisor”, whether or not you want one.
There are several different accounts available (with all sorts of additional fees which may apply). I selected the ML “Wealth Diversified Portfolio” which most closely compares to the accounts offered by the other institutions listed below.
ML Wealth Diversified Portfolio: 2.05% on first Million, 1.55% on second Million, 1.20% on next 2 Million, and 1.05% on next 6 Million.
HSBC: 0.50% on first $2 Million, 0.40% on next $3 million
Peoples United Bank: 1.00% on first Million, 0.80% on second Million, 0.60% on next 3 Million, and 0.40% on next 5 Million.
Wells Fargo: 1.25% on first 2 Million, 0.80% on next 3 Million, and 0.60% on next 5 Million.
Fidelity: 1.10 % for first $500,000, 0.80% for next $500,000, 0.70% for next 1 Million, and 0.40% for next Million.
For assets above 3 million, a flat rate applies: 0.65% for 3-4 Million; 0.55% for 4-5 Million; 0.50% for 5-6 Million; 0.45% for 6-7 Million; 0.38% for 7-8 Million and 0.30% for 8 Million or more. (These are the maximum annual new advisory fees listed on line and the more voluminous brochure sent me lists adjustments which result in a somewhat lower "Variable Net Advisory Fee").
I don't fully understand Fidelity's trust services and I have more to do to attain enlightenment.
Chase Manhattan: 0.95% on first Million; 0.70% on next 4 Million, 0.50% on next 5 Million and 0.25% on balance over $10 Million.
(Curiously, JPMorgan which owns Chase Manhattan lists slightly higher fees in their 2008 “Trust and Custody Fee Schedule. 1.15% on first Million, 1.00% on next 2 Million; 0.80% on next 2 Million; 0.60% for next 5 Million; and 0.50% for the following 5 Million.) This was the first trust fee schedule I received when we began this educational effort in the Spring of 2010. In light of the banking industry travails, I find it hard to believe trust fees would be reduced.
USAA: Strategic Fund Advisor “Marketplace Portfolio” (no USAA funds)
1.05% on first $125,000; 0.90% on next $125,000, 0.65% on next $250,000, 0.40% on next $500,000 and 0.25% on anything over $1,000,000.
Strategic Fund Advisor USAA Portfolio ( all USAA mutual funds)
USAA Global Opportunities Portfolio (mixture of investments)
0.70% on first $125,000; 0.65% on next $125,000; 0.50% on next $250,000; 0.30% on next $500,000n and 0.20% on anything over $1,000,000.
(USAA has an annual gross account fee of from 1.80%-1.96% reduced by a credit of from 0.91% -1.10% which largely- but not completely- reflects the USAA funds in the account) While the account management philosophies and charges are clearly described. the “gross-minus credit = net fee struck me a curious practice.
Vanguard: Investment management fee 0.75% on first Million, 0.35% on second Million, and 0.20% on anything above 2 Million. An additional $2500 annual Trust Administration fee for applies for each sole or co-trustee registration.
To keep this post short, I won't add anything further. I will post a follow-up message with some thoughts shortly about the overall experience during the past several months.
PS- it is possible some of these fees have changed a bit since I began this effort in June of 2010.