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Foundational Knowledge:
Learning More About Trusts
By Angella Hjelle, Executive Director and Corporate Counsel of the Bethel Foundation
Q: Does the Bethel Foundation have any experience with trusts?
A: The Bethel Foundation, established in 1971, was a pioneer in the area of charitable remainder unitrusts. The Bethel Foundation served as the trustee of the very first charitable remainder unitrust established in the nation, which is still in force today.
Q: With what types of trusts does the Foundation have experience?
A: Currently, the Foundation is trustee for about 50 charitable remainder unitrusts, five revocable living trusts, three charitable remainder annuity trusts, one testamentary trust, and five other types of trusts.
Q: What is involved with serving as a trustee of a trust?
A: Acting as a trustee begins with an understanding and implementation of the rules of being a fiduciary. The trustee must constantly balance the various interests in the trust.
The trustee must also invest the trust assets in compliance with the prudent investor rule, make income and remainder distributions from the trust, do the accounting for the trust, and complete the required Internal Revenue Service tax returns and filings, as well as the state tax returns and filings.
Q: What type of assets may be used to fund a trust?
A: At the Foundation, we have had a variety of assets used to fund trusts, including appreciated stock, cash, commercial real estate, apartment buildings, duplexes, farms, and undeveloped real estate.
Q: What fees would the Foundation charge for serving as trustee?
A: The Foundation does not charge any fee for the administration of trusts, with the agreement that upon the trust's maturity, Bethel will receive a minimum of 50 percent of the remainder of the trust.